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BluOr Bank AS
Group’s Consolidated and Bank’s Separate Annual
Report for the year ended 31 December 2025
BluOr Bank AS
The Group’s Consolidated and the Bank’s Separate Annual Report for the year ended 31
December 2025
Content
2
page
Management report
3 – 5
Council and Board of the Bank
6
Statement of the Management’s responsibility
7
The Group’s Consolidated and the Bank’s Separate Financial Statements for the year
ended 31 December 2025
The Group’s Consolidated and the Bank’s Separate Income Statements
8
The Group’s Consolidated and the Bank’s Separate Statements of Other
Comprehensive Income
9
The Group’s Consolidated and the Bank’s Separate Statements of Financial
Position
10 - 11
The Group’s Consolidated Statement of Changes in the Shareholders’ Equity
12
The Bank’s Separate Statement of Changes in the Shareholders’ Equity
13
The Group’s Consolidated and the Bank’s Separate Statements of Cash Flows
14
Notes to the Group’s Consolidated and the Bank’s Separate Financial Statements
15 – 96
Independent Auditor’s Report
97
BluOr Bank AS
The Group’s Consolidated and the Bank’s Separate Annual Report for the year ended 31
December 2025
Management report
3
BluOr Bank AS (Bank) is a joint–stock company established on 22 June 2001 and entered into the
Register of Enterprises of the Republic of Latvia under uniform registration No. 40003551060. The
bank’s address is Smilšu iela 6, Rīga, LV–1050, Republic of Latvia. On 8 June 2001, the Bank received
a license for conducting the activities of a credit institution, which was re-registered on 28 June 2011,
on 14 September 2017 and on 22 March 2022 – license No. 06.01.05.002/543 at the license register of
the Latvijas Banka. The Bank operates in accordance with the applicable legislation of the Republic of
Latvia and the European Union.
The Group consists of the Bank, which is a Parent company of the Group and a number of subsidiaries.
Those were set up to manage repossessed collaterals and real estate property.
BluOr Bank Delivers Sustainable Growth and Strong Performance
BluOr Bank’s performance over the reporting period demonstrates its ability to operate successfully in
a changing market environment, underpinned by stability and consistent growth. The financial results
achieved reflect a sustainable business model, effective strategy execution, and a continued
strengthening of the Bank’s competitive position.
As evidenced by the audited financial results, the Bank recorded a profit of EUR 18.1 million during the
reporting period. At the end of the reporting period, the Bank’s equity amounted to EUR 131.1 million.
During the period, the Bank also raised EUR 1 million in additional Tier 1 capital through the issuance
of the Bank’s bonds. At the same time, total assets increased by nearly 9%, reaching EUR 1.143 billion,
confirming the expansion of the Bank’s operations and the acceleration of its business growth.
As at 31 December 2025, the Bank reported a liquidity coverage ratio (LCR) of 145.34% and a capital
adequacy ratio of 18.73%. Other key indicators of the Bank’s financial performance also remained
strong, with return on equity (ROE) at 18.68% and return on assets (ROA) at 1.65%.
Throughout the reporting period, the Bank maintained consistent implementation of its business
strategy, ensuring stable growth of its client base. Over the last 12 months, the Bank recorded growth of
35% in the corporate client segment and 16% in the retail segment, confirming strong demand for the
Bank’s services and well-balanced development across customer segments.
Growing customer activity was also reflected in higher lending volumes. Over the past year, BluOr Bank
significantly expanded its lending activities, providing active support for business financing across
various sectors. The volume of newly issued loans amounted to EUR 325 million, representing an
increase of approximately 28% compared with the previous period. This growth demonstrates both
rising demand for the Bank’s financing solutions and the Bank’s capacity to meet this demand. Of the
total financing granted, 87% was directed to small and medium-sized enterprises, supporting business
growth both in the capital and across the regions.
As a result of these lending activities, the Bank’s total portfolio of approved and issued loans increased
by 30% in 2025, reaching EUR 781 million, reflecting the Bank’s targeted growth and its solid position
in corporate financing.
During the reporting period, the Bank provided clients with high-quality asset management solutions,
driving both higher client interest and growth in assets under management. In 2025, this area of activity
achieved solid growth, with total assets under management increasing by 113% and the client base
expanding by 89%. At the same time, the value of investment portfolios increased by an average of
31%, delivering strong returns for clients and demonstrating the Bank’s professional expertise in this
area. This rapid growth was driven by consistent strategy execution and the dedicated, professional
BluOr Bank AS
The Group’s Consolidated and the Bank’s Separate Annual Report for the year ended 31
December 2025
Management report
4
efforts of the Bank’s team, reinforcing the Bank’s position among leading market participants in the
Latvian asset management segment.
In 2025, the e-commerce segment also recorded substantial growth. Card acquiring turnover more than
doubled, increasing by 134% to reach its highest level to date. By the end of the reporting period,
monthly turnover amounted to EUR 22 million. At the same time, transaction activity also rose
significantly, with the number of unique transactions rising by approximately 270% and reaching up to
800 thousand transactions per month by year-end.
The continued development of e-commerce services also contributed to the expansion of the client base.
During the reporting period, the Bank recorded a significant increase in new clients in both POS terminal
services and e-commerce solutions. The expansion of the Bank’s international operations and service
offering enhanced BluOr Bank’s visibility and attracted new clients in the online payments segment. At
the same time, the Bank expanded its presence across the Baltic region, making its services availabl e
outside Latvia.
Over the past year, the Bank continued to broaden its range of services, providing clients with enhanced
opportunities to support international payments and business development. The geographical reach of
payment services was significantly expanded to include Australia, Canada, Israel, and Japan.
To ensure secure and efficient payment solutions, BluOr Bank partners with a leading Northern
European payment processing service provider that is part of a major European payment technology
group. The cooperation covers card and payment transaction processing, the implementation of fraud
prevention solutions and the 3D Secure protocol for e-commerce security, as well as customer support
outside the Bank’s business hours.
The Bank has incorporated sustainability goals into its operational strategy, taking into account
environmental, social, and governance (ESG) criteria, and is actively implementing this commitment
through practical measures. One such initiative is the signing of a guarantee agreement with the
European Investment Fund (EIF) under the InvestEU programme, aimed at promoting green investment
financing for SMEs in Latvia. With the support of the EIF guarantee, the Bank can offer financing of up
to EUR 30 million for projects that contribute to achieving the European Union’s green and sustainable
economic development goals and help mitigate the impact of climate change.
As a bank founded by Latvian entrepreneurs, BluOr Bank builds its activities on long-term relationships
with its clients, developing financial services tailored to the needs of both corporate and private
customers. Through the gradual expansion of its service offering, the Bank strengthens its market
position and supports balanced, sustainable growth.
In line with its strategic objectives, the Bank intends to substantially expand its mortgage and consumer
lending activities in 2026, reinforcing its position in the retail financing segment and supporting
sustainable, long-term development.
Risk management and regulatory compliance will remain a core component of the Bank’s operations,
supported by continuous monitoring of developments in international regulation and market dynamics.
As at issuance of the annual report the Board proposes to distribute part of the profit
amounting to EUR 9 million as dividends and the rest to keep as retained earnings to
strengthen the capital position of the Group.
BluOr Bank AS
The Group’s Consolidated and the Bank’s Separate Annual Report for the year ended 31
December 2025
Management report
5
Corporate Governance Statement can be found on the Bank's website in the section
"information disclosure" (https://www.bluorbank.lv/en/compliance).
On behalf of the Bank’s management,
________________ ____________________
Dmitrijs Latiševs Vadims Morozs
Chairman of the Board Member of the Board
This document has been signed in electronic form with a secure electronic signature and
contains a time-stamp.
BluOr Bank AS
The Group’s Consolidated and the Bank’s Separate Annual Report for the year ended 31
December 2025
Council and Board of the Bank
6
Council as of 31 December 2025
Name, Surname
Position
Date of Appointment
Aleksandrs Peškovs
Chairman of the Council
22 June 2001
Sergejs Peškovs
Member of the Council
Deputy Chairman of the Council
22 June 2001
25 July 2002
Andrejs Kočetkovs
Member of the Council
22 June 2001
Nataļja Zolova
Member of the Council
25 August 2022
Regina Lubgane
Member of the Council
17 June 2024
Board as of 31 December 2025
Name, Surname
Position
Date of Appointment
Dmitrijs Latiševs
Member of the Board
Deputy Chairman of the Board
Chairman of the Board
1 July 2002
25 April 2003
27 April 2011
Inga Preimane
Member of the Board
11 January 2016
Vadims Morozs
Member of the Board
12 August 2019
Pāvels Orlovs
Member of the Board
2 July 2025
On behalf of the Bank’s management,
Dmitrijs Latiševs
Chairman of the Board
Vadims Morozs
Member of the Board
This document has been signed in electronic form with a secure electronic signature and contains a
time-stamp.
BluOr Bank AS
Group’s Consolidated and Bank’s Separate Annual Report for the year ended 31 December
2025
Statement of the Management’s responsibility
7
The Management of BluOr Bank AS (hereinafter – the “Bank”) is responsible for the preparation of
the consolidated financial statements of the Bank and its subsidiaries (hereinafter – the “Group”) as
well as for the preparation of the financial statements of the Bank.
The Group’s consolidated and the Bank’s separate financial statements are prepared in accordance with
IFRS Accounting standards as adopted by the European Union on a going concern basis. Appropriate
accounting policies have been applied on a consistent basis. Prudent and reasonable judgements and
estimates have been made by the Management in the preparation of the Group’s consolidated and the
Bank’s separate financial statements.
The Group’s consolidated and the Bank’s separate financial statements on pages 8 to 96 are prepared in
accordance with the source documents and present fairly the financial position of the Group as at 31
December 2025 and the consolidated results of its operations and cash flows for the year then ended, as
well as the financial position of the Bank as at 31 December 2025 and the results of its operations and
cash flows for the year ended 31 December 2025.
The management of the Bank is responsible for the maintenance of a proper accounting system,
safeguarding the Group’s and the Bank’s assets, and the detection and prevention of fraud and other
irregularities in the Group and the Bank. Management is also responsible for operating the Group and
the Bank in compliance with the Law on Credit Institutions and other legislation of the Republic of
Latvia applicable to credit institutions.
On behalf of the Bank’s management,
Dmitrijs Latiševs
Chairman of the Board
Vadims Morozs
Member of the Board
This document has been signed in electronic form with a secure electronic signature and contains a
time-stamp.
BluOr Bank AS
The Group’s Consolidated and the Bank’s Separate Financial Statements for the year ended 31
December 2025
The Group’s Consolidated and the Bank’s Separate Income Statements
8

| Note |  | 2025 |  | 2024
|  | Group | Bank | Group | Bank
|  | EUR’000 | EUR’000 | EUR’000 | EUR’000
Interest income at effective interest |  | 46 941 | 46 941 | 50 363 | 50 363
rate |  |  |  |  |
Other interest income |  | 782 | 25 | 1 297 | 176
Interest expenses |  | (20 488) | (20 828) | (22 442) | (22 792)
Net interest income | 6 | 27 235 | 26 138 | 29 218 | 27 747
Fee and commission income |  | 18 449 | 18 449 | 16 369 | 16 370
Fee and commission expense |  | (2 850) | (2 850) | (2 235) | (2 234)
Net fee and commission income | 7 | 15 599 | 15 599 | 14 134 | 14 136
Net profit/loss from trading and revaluation of financial instruments | 8 | 201 | 201 | (152) | (152)
Net foreign exchange trading and revaluation income | 9 | 2 339 | 2 339 | 674 | 674
Other operating income | 10 | 989 | 1 011 | 2 572 | 2 515
Total operating income |  | 46 363 | 45 288 | 46 446 | 44 920
Administrative expenses | 11 | (21 971) | (21 305) | (19 524) | (18 558)
Other operating expenses | 12 | (696) | (701) | (2 016) | (2 024)
Credit loss allowances | 16,17,18 | (316) | (685) | (2 898) | (1 945)
Total operating expenses |  | (22 983) | (22 691) | (24 438) | (22 527)
Profit before taxation |  | 23 380 | 22 597 | 22 008 | 22 393
Corporate income tax | 13 | (4 532) | (4 526) | (4 543) | (4 543)
Profit for the year |  | 18 848 | 18 071 | 17 465 | 17 850

The accompanying notes on pages 15 to 96 form an integral part of these financial statements.
The Board of the Bank approved the issue of these financial statements as presented from page 8 to 96 on 6
March 2026. The financial statements are signed on behalf of the Board of the Bank by:
Dmitrijs Latiševs
Chairman of the Board
Vadims Morozs
Member of the Board/Chief
accountant
This document has been signed in electronic form with a secure electronic signature and contains a time-stamp.
BluOr Bank AS
The Group’s Consolidated and the Bank’s Separate Financial Statements for the year ended 31
December 2025
The Group’s Consolidated and the Bank’s Separate Statements of Other Comprehensive
Income
9

|  | 2025 |  | 2024
| Group | Bank | Group | Bank
| EUR’000 | EUR’000 | EUR’000 | EUR’000
Profit for the year | 18 848 | 18 071 | 17 465 | 17 850
Other comprehensive income |  |  |  |
Items that may be reclassified to profit or loss |  |  |  |
Foreign exchange revaluation gain | (1) | - | 1 | -
Revaluation gain – financial assets at fair value through other comprehensive income (debt instruments) | 269 | 269 | 607 | 607
Total items that may be reclassified to profit or loss | 268 | 269 | 608 | 607
Other comprehensive income | 268 | 269 | 608 | 607
Total comprehensive income | 19 116 | 18 340 | 18 073 | 18 457

The accompanying notes on pages 15 to 96 form an integral part of these financial statements.
The Board of the Bank approved the issue of these financial statements as presented from page 8 to 96 on 6
March 2026. The financial statements are signed on behalf of the Board of the Bank by:
Dmitrijs Latiševs
Chairman of the Board
Vadims Morozs
Member of the Board/Chief
accountant
This document has been signed in electronic form with a secure electronic signature and contains a
time-stamp.
BluOr Bank AS
The Group’s Consolidated and the Bank’s Separate Financial Statements for the year ended 31
December 2025
The Group’s Consolidated and the Bank’s Separate Statements of Financial Position
10

Assets |  | 31.12.2025 |  | 31.12.2024 |
| Note | Group | Bank | Group | Bank
|  | EUR’000 | EUR’000 | EUR’000 | EUR’000
Cash and demand deposits with central bank | 14 | 398 384 | 398 384 | 409 545 | 409 545
Loans and receivables from credit institutions | 15 | 12 296 | 12 292 | 7 730 | 7 622
Demand deposits with credit |  | 12 296 | 12 292 | 7 730 | 7 622
institutions |  |  |  |  |
Investment securities | 16,18 | 53 260 | 53 260 | 69 506 | 69 506
Fixed income securities |  | 52 692 | 52 692 | 68 940 | 68 940
Non fixed income securities |  | 568 | 568 | 566 | 566
Loans and receivables | 17 | 625 769 | 616 435 | 508 656 | 489 930
Investments in associates | 19 | 827 | - | 827 | -
Investments in subsidiary | 19 | - | 38 416 | - | 47 715
undertakings |  |  |  |  |
Investment property | 20 | 2 772 | 1 614 | 2 850 | 1 614
Property and equipment | 21 | 21 348 | 2 748 | 22 470 | 3 011
Right-of-use assets | 21 | - | 7 934 | - | 8 598
Intangible assets | 22 | 252 | 242 | 203 | 193
Prepayments and accrued | 23 | 614 | 606 | 566 | 559
income |  |  |  |  |
Other assets | 24 | 10 744 | 10 720 | 10 876 | 10 854
Total assets |  | 1 126 266 | 1 142 651 | 1 033 229 | 1 049 147

BluOr Bank AS
The Group’s Consolidated and the Bank’s Separate Financial Statements for the year ended 31
December 2025
The Group’s Consolidated and the Bank’s Separate Statements of Financial Position
11
The accompanying notes on pages 15 to 96 form an integral part of these financial statements.
The Board of the Bank approved the issue of these financial statements as presented from page 8 to 96 on 6
March 2026. The financial statements are signed on behalf of the Board of the Bank by:
Dmitrijs Latiševs
Chairman of the Board
Vadims Morozs
Member of the Board/Chief
accountant
This document has been signed in electronic form with a secure electronic signature and contains a
time-stamp.

Liabilities and Equity 31.12.2025 |  |  |  | 31.12.2024 |
| Note | Group | Bank | Group | Bank
|  | EUR’000 | EUR’000 | EUR’000 | EUR’000
Due to monetary financial | 25 | 3 985 | 3 985 | 3 457 | 3 457
institutions on demand |  |  |  |  |
Financial liabilities carried at amortized cost |  | 1 006 787 | 1 011 536 | 926 432 | 929 347
Deposits | 26 | 965 826 | 970 575 | 886 537 | 889 452
Deposits (subordinated) | 26 | 5 726 | 5 726 | 5 711 | 5 711
Additional Tier 1 Debt securities | 27 | 9 864 | 9 864 | 8 813 | 8 813
(subordinated) |  |  |  |  |
Debt securities (subordinated) | 27 | 25 371 | 25 371 | 25 371 | 25 371
Lease liabilities | 21 | - | 8 730 | - | 9 330
Deferred income and accrued |  | 3 624 | 3 612 | 2 759 | 2 740
expenses |  |  |  |  |
Provisions |  | 243 | 243 | 121 | 121
Income tax liabilities | 13 | 4 509 | 4 509 | 4 455 | 4 455
Other liabilities | 28 | 6 607 | 6 550 | 5 610 | 5 551
Total liabilities |  | 1 025 755 | 1 039 165 | 942 834 | 955 001
Shareholders’ equity |  |  |  |  |
Share capital | 29 | 44 493 | 44 493 | 44 493 | 44 493
Statutory reserves | 29 | 24 | 24 | 24 | 24
Revaluation reserve – financial |  |  |  |  |
assets at fair value through other comprehensive income |  | (495) | (495) | (764) | (764)
Other reserves |  | (3 412) | (2 400) | (3 412) | (2 400)
Retained earnings |  | 59 901 | 61 864 | 50 054 | 52 793
Total equity attributable to equity holders of the Bank |  | 100 511 | 103 486 | 90 395 | 94 146
Total equity and liabilities |  | 1 126 266 | 1 142 651 | 1 033 229 | 1 049 147

BluOr Bank AS
The Group’s Consolidated and the Bank’s Separate Financial Statements for the year ended 31
December 2025
The Group’s Consolidated Statement of Changes in the Shareholders’ Equity
12
Note

|  |  |  |  |  | Total equity |
|  |  |  |  |  | attributable |
|  |  | Revaluation |  |  | to equity |
| Share | Statutory | reserve – | Other | Retained | holders of the | Total
| capital | reserves | FVOCI | reserves | earnings | parent | equity
Balance as at 31 December | EUR`000 | EUR`000 | EUR`000 | EUR'000 | EUR`000 | EUR`000 | EUR`000
2023 | 44 493 | 24 | (1 371) | (3 412) | 41 588 | 81 322 | 81 322
Dividends paid | - | - | - | - | (9 000) | (9 000) | (9 000)
Other comprehensive income for the year: | - | - | 607 | - | 1 | 608 | 608
Revaluation of financial |  |  |  |  |  |  |
assets | - | - | 607 | - | - | 607 | 607
Foreign exchange |  |  |  |  |  |  |
revaluation | - | - | - | - | 1 | 1 | 1
Profit for the year | - | - | - | - | 17 465 | 17 465 | 17 465
Total comprehensive income for the year | - | - | 607 | - | 17 466 | 18 073 | 18 073
Balance as at 31 December |  |  |  |  |  |  |
2024 | 44 493 | 24 | (764) | (3 412) | 50 054 | 90 395 | 90 395
Dividends paid | - | - | - | - | (9 000) | (9 000) | (9 000)
Other comprehensive income for the year: | - | - | 269 | - | (1) | 268 | 268
Revaluation of financial |  |  |  |  |  |  |
assets | - | - | 269 | - | - | 269 | 269
Foreign exchange |  |  |  |  |  |  |
revaluation | - | - | - | - | (1) | (1) | (1)
Profit for the year | - | - | - | - | 18 848 | 18 848 | 18 848
Total comprehensive income for the year | - | - | 269 | - | 18 847 | 19 116 | 19 116
Balance as at 31 December |  |  |  |  |  |  |
2025 | 44 493 | 24 | (495) | (3 412) | 59 901 | 100 511 | 100 511

The accompanying notes on pages 15 to 96 form an integral part of these financial statements.
The Board of the Bank approved the issue of these financial statements as presented from page 8 to 96 on 6
March 2026. The financial statements are signed on behalf of the Board of the Bank by:
Dmitrijs Latiševs
Chairman of the Board
Vadims Morozs
Member of the Board/Chief
accountant
This document has been signed in electronic form with a secure electronic signature and contains a
time-stamp
BluOr Bank AS
The Group’s Consolidated and the Bank’s Separate Financial Statements for the year ended 31
December 2025
The Bank’s Separate Statement of Changes in the Shareholders’ Equity
13
Note
Share
capital
Statutory
reserves
Other
reserves
Revaluation
reserve –
FVOCI
Retained
Earnings
Total
capital and
reserves
EUR'000
EUR’000
EUR’000
EUR’000
EUR’000
EUR’000
Balance as at 31 December
2023
44 493
24
(2 400)
(1 371)
43 943
84 689
Dividends paid
-
-
-
-
(9 000)
(9 000)
Other comprehensive income
for the year:
-
-
-
607
-
607
Revaluation of financial assets
-
-
-
607
-
607
Profit for the year
-
-
-
-
17 850
17 850
Total comprehensive income
for the year
-
-
-
607
17 850
18 457
Balance at 31 December 2024
44 493
24
(2 400)
(764)
52 793
94 146
Dividends paid
-
-
-
-
(9 000)
(9 000)
Other comprehensive income
for the year:
-
-
-
269
-
269
Revaluation of financial assets
-
-
-
269
-
269
Profit for the year
-
-
-
-
18 071
18 071
Total comprehensive income
for the year
-
-
-
269
18 071
18 340
Balance as at 31 December
2025
44 493
24
(2 400)
(495)
61 864
103 486
The accompanying notes on pages 15 to 96 form an integral part of these financial statements.
The Board of the Bank approved the issue of these financial statements as presented from page 8 to 96 on 6
March 2026. The financial statements are signed on behalf of the Board of the Bank by:
Dmitrijs Latiševs
Chairman of the Board
Vadims Morozs
Member of the Board/Chief
accountant
This document has been signed in electronic form with a secure electronic signature and contains a
time-stamp.
BluOr Bank AS
The Group’s Consolidated and the Bank’s Separate Financial Statements for the year ended 31
December 2025
The Group’s Consolidated and the Bank’s Separate Statements of Cash Flows
14

|  |  | 2025 |  | 2024
| Note | Group | Bank | Group | Bank
|  | EUR’000 | EUR’000 | EUR’000 | EUR’000
Cash flow from operating activities |  |  |  |  |
Profit before taxation |  | 23 380 | 22 597 | 22 008 | 22 393
Amortisation of intangible assets |  | 74 | 74 | 139 | 139
Depreciation of property, equipment and right-of-use |  |  |  |  |
assets |  | 1 163 | 968 | 1 162 | 967
Revaluation of financial assets |  | (71) | (71) | (129) | (129)
Interest income |  | (47 723) | (46 966) | (51 660) | (50 539)
Interest expense |  | 20 488 | 20 828 | 22 442 | 22 792
Impairment of assets (inc. expected credit loss) |  | 316 | 685 | 2 898 | 1 945
Increase in cash and cash equivalents before changes |  |  |  |  |
in assets and liabilities, as a result of ordinary |  |  |  |  |
operations |  | (2 373) | (1 885) | (3 140) | (2 432)
(Increase) decrease in loans and receivables |  | (117 543) | (127 304) | (98 487) | (78 808)
Decrease in investment securities |  | 16 928 | 16 928 | 28 324 | 28 324
Decrease in prepayments and accrued income |  | (48) | (47) | 288 | 285
(Increase)/ decrease in other assets |  | 132 | 135 | 9 752 | 9 723
Increase/(decrease) in deposits and due to banks |  | 80 996 | 82 830 | 87 151 | 87 641
Interest received |  | 47 495 | 46 738 | 51 421 | 50 300
Interest paid |  | (21 652) | (21 992) | (21 502) | (21 852)
Increase/(decrease) in other liabilities and current tax |  |  |  |  |
liabilities |  | 1 119 | 1 121 | 3 250 | 3 291
Increase/(decrease) in deferred income and accrued |  |  |  |  |
expenses |  | 865 | 872 | 496 | 497
Net cash from operating activities before tax |  | 5 919 | (2 604) | 57 553 | 76 969
Corporate income tax paid |  | (4 478) | (4 472) | (3 149) | (3 149)
Net cash from operating activities |  | 1 441 | (7 076) | 54 404 | 73 820
Cash flows from investment activities |  |  |  |  |
Purchase of fixed and intangible assets |  | (164) | (164) | (157) | (147)
Disposal of investment property |  | 78 | - | 100 | -
Capital increase in investment in subsidiaries | 19 | - | - | - | (19 944)
Capital decrease in investment in subsidiaries | 19 | - | 9 299 | - | 1 100
Net cash (used in) investing activities |  | (86) | 9 135 | (57) | (18 991)
Cash flows from financing activities |  |  |  |  |
Lease liabilities repaid on right-of-use asset |  | - | (600) | - | (582)
Bonds issued |  | 1 050 | 1 050 | 22 649 | 22 649
Dividends (paid) | 29 | (9 000) | (9 000) | (9 000) | (9 000)
Net cash (used in) financing activities |  | (7 950) | (8 550) | 13 649 | 13 067
Net changes in cash and cash equivalents |  | (6 595) | (6 491) | 67 996 | 67 896
Cash and cash equivalents at the beginning of the reporting year |  | 417 275 | 417 167 | 349 279 | 349 271
Cash and cash equivalents at the end of the reporting year | 30 | 410 680 | 410 676 | 417 275 | 417 167

The accompanying notes on pages 15 to 96 form an integral part of these financial statements.
The Board of the Bank approved the issue of these financial statements as presented from page 8 to 96 on 6 March 2026. The financial
statements are signed on behalf of the Board of the Bank by:
Dmitrijs Latiševs
Chairman of the Board
Vadims Morozs
Member of the Board/Chief
accountant
This document has been signed in electronic form with a secure electronic signature and contains a time-stamp
BluOr Bank AS
The Group’s Consolidated and the Bank’s Separate Annual Report for the year ended 31 December 2025
Notes to the Group’s Consolidated and the Bank’s Separate Financial Statements
15
1. GENERAL INFORMATION
BluOr Bank AS (previous name – AS BlueOrange Bank) (“the Bank”) is a Joint Stock Company registered with
the Enterprise Register of the Republic of Latvia on 22 June 2001. The address of the Bank is Smilšu iela 6, Riga,
LV 1050, Latvia . The Bank holds a banking license issued in Latvia and it acts in accordance with the legislation
of Latvia and the European Union.
The primary lines of business of the Bank are servicing corporate customers and high net worth individuals, and
managing investments and finances.
The sole shareholder of the Bank is Joint Stock Company BBG that holds 100% of the voting shares of the Bank.
JSC BBG is a financial management company registered in Latvia and owned by four Latvian companies and
two private individuals, none of the ultimate beneficial owners control the Group as at 31 December 2025. The
consolidated financial statements of the parent company AS BBG can be obtained from the Enterprise Register
of Latvia.
The Bank has a number of subsidiaries in Latvia and foreign countries as well as investments in associated
company. Those entities form the Group and are shown in the following table:

|  |  | Holding | Holding
|  |  | 31.12.2025, | 31.12.2024
Name of the company | Country of incorporation, address | Line of business | % | , %
SIA BluOr International | Smilšu iela 6, Riga, Latvia | Real estate development | 100 | 100
SIA Zapdvina | Kr. Valdemara iela 149, Riga, Latvia | Real estate development | 100 | 100
Development |  |  |  |
Kamaly Development | Etiera k-s ½B – 18, Sveti Vlas, Burgas |  | 100 | 100
EOOD | obl., Nesebier 8256, Bulgaria | Real estate development |  |
UAB Kamaly | Klaipedos m. sav. Klaipedos m., Karklu | Management of collaterals | 100 | 100
Development | g. 12, Lithuania | taken over by the bank |  |
AS Pils Pakalpojumi | Smilšu iela 6, Riga, Latvia | Real estate development | 100 | 100
Foxtran Management Ltd | Suite 102, Blake Building, Corner Eyre | Management of collaterals | 100 | 100
| & Huston Str., Belize | taken over by the bank |  |
SIA Jēkaba 2 | Jēkaba iela 2, Riga, Latvia | Real estate development | 100 | 100
Pulkarne Entity SIA | Kr. Valdemara 149-405, Riga, Latvia | Real estate development | - | 100
| Trust Company Complex, Ajeltake Road, |  |  |
Hazee Shipping Corp | Ajeltake Island, Majuro, Republic of the | Financial services | 100 | 100
| Marshall Islands, MH96960 |  |  |

BluOr Bank AS, as a parent company, is responsible for establishing the structure and corporate governance
system of the Group with clearly defined duties and responsibilities and adequate supervision of subsidiaries.
There is a Council (composed of two members of the Council) and a Board (composed of one member of the
Board) established in AS Pils Pakalpojumi. The Boards of other subsidiaries of the Bank consist of one Board
member or one elected director. No significant changes have occurred in the corporate governance structure and
operations of the Group and its companies, compared to the previous reporting period.
BluOr Bank AS
Group’s Consolidated and Bank’s Separate Annual Report for the year ended 31 December 202 5
Notes to the Group’s Consolidated and the Bank’s Separate Financial Statements
16
Investments in associated companies (the Group):

|  |  | Holding | Holding
|  |  | (%) | (%)
Company | Country of incorporation, address | Line of business | 31.12.2025 | 31.12.2024
AS Termo biznesa |  |  |  |
Centrs | Kr. Valdemāra iela 149, Riga, Latvia | Real estate development | 26.15 | 26.15

2. BASIS OF PREPARATION
(1) Statement of Compliance
The financial statements of the Bank and the Group (“financial statements”) have been prepared in accordance
with IFRS Accounting standards as adopted by the European Union (“IFRS Accounting standards” or “IFRS”),
and Latvijas Banka regulations in force as at 31 December 2025.
The Group’s consolidated and the Bank’s separate financial statements were authorized for issue by the Board on
6 March 2026. Shareholders have the power to reject the financial statements prepared and issued by the
management and the right to request that new financial statements are issued.
(2) Functional and presentation currency
These consolidated and separate financial statements are presented in thousands of euros (‘000 EUR), unless
stated otherwise. Subsidiaries of the Group and the Bank operate in the functional currency of euro .
(3) Basis of measurement
The Group’s consolidated financial statements and the Bank’s separate financial statements are prepared on the
historical cost basis, except for the following:
- financial instruments at fair value through profit or loss are stated at fair value;
- financial instruments at fair value through other comprehensive income (FVOCI) are valued at fair value;
- repossessed collaterals are recognised at lower of its carrying amount and fair value less cost to sell.
3. MATERIAL ACCOUNTING POLICIES
The following significant accounting policies have been applied in the preparation of these Group’s Consolidated
and the Bank’s Separate Financial Statements. The accounting principles have been consistently applied in 2025
and 2024.
(1) Basis for consolidation
(i) Subsidiaries
Subsidiaries are entities controlled by the Group. The Group controls an entity when it is exposed to, or has rights
to, variable returns from its involvement with the entity and has the ability to affect those returns through its
power over the entity. The financial statements of subsidiaries are included in the consolidated financial
statements from the date on which control commences until the date on which control ceases.
Investments in subsidiaries are carried in the Bank’s separate financial statements at cost less impairment, if any.
(ii) Loss of control
When the Group loses control over a subsidiary, it derecognises the assets and liabilities of the subsidiary, and
any related non-controlling interest and other components of equity. Any resulting gain or loss is recognised in
profit or loss. Any interest retained in the former subsidiary is measured by the Group at fair value when control
is lost.
BluOr Bank AS
Group’s Consolidated and Bank’s Separate Annual Report for the year ended 31 December 202 5
Notes to the Group’s Consolidated and the Bank’s Separate Financial Statements
17
(iii) Interest in equity-accounted investees
The Group’s interests in equity accounted investees comprise interests in associates.
Associates are those entities in which the Group has significant influence, but not control or joint control, over
the financial and operating policies.
Investments in associates are accounted for in the Group’s consolidated financial statements using the equity
method. The Bank ensures the appropriate adjustments are made in the associate’s financial information to align
the accounting policies with those used by the Group before equity method of accounting is applied. They are
initially recognised at cost, including transaction costs. Subsequent to initial recognition, the consolidated
financial statements include the Group’s share of the profit or loss a nd OCI in equity-accounted investees, until
the date on which significant influence ceases.
Investments in associates are carried in the Bank’s separate financial statements at cost less impairment, if any.
(iv) Transactions eliminated on consolidation
Intra-group balances and transactions, and any unrealised gains arising from intra-group transactions, are
eliminated in preparing the consolidated financial statements. Unrealised gains arising from transactions with
equity-accounted investees are eliminated to the extent of the Group’s interest in the investee. Unrealised losses
are eliminated in the same way as unrealised gains, but only to the extent that there is no evidence of impairment.
(v) Group’s unified accounting policy
In the preparation of the consolidated financial statements, the financial statements of those Group entities that
use different accounting policies are adjusted to conform with the Group’s accounting policy .
(2) Foreign currency
Transactions in foreign currencies are translated into the respective functional currencies of the Group companies
at the exchange rate at the date of the transaction.
Monetary assets and liabilities denominated in foreign currencies at the reporting date are retranslated into the
functional currency at the spot exchange rate at that date. The foreign currency gain or loss on monetary items is
the difference between amortized cost in the functional currency at the beginning of the period, adjusted for
effective interest and payments during the period, and the amortized cost in foreign currency translated at the
exchange rate at the end of the period.
Non-monetary assets and liabilities denominated in foreign currencies that are measured at fair value are
retranslated into the functional currency at the spot exchange rate at the date that the fair value was determined.
Foreign currency differences arising on retranslation are recognized in the income statement.
The exchange rates for the most significant currencies as set by the European Central Bank at reporting date are
as follows:

| 31 December 2025 | 31 December 2024
USD | 1.1750 | 1.0389

Foreign operations
The assets and liabilities of foreign operations, including goodwill and fair value adjustments arising on
acquisition, are translated into EUR at exchange rates set by the European Central Bank at the reporting date. The
income and expenses of foreign operations are translated into the functional currency at the exchange rates of
transaction dates.
Foreign currency differences are recognized in other comprehensive income and accumulated in the translation
reserve, except to the extent that the translation difference is allocated to non-controlling interest.
BluOr Bank AS
Group’s Consolidated and Bank’s Separate Annual Report for the year ended 31 December 202 5
Notes to the Group’s Consolidated and the Bank’s Separate Financial Statements
18
Foreign exchange gains or losses arising from a monetary item receivable from or payable to a foreign operation,
the settlement of which is neither planned nor likely to occur in the foreseeable future and which in substance is
considered to form part of the net investment in the foreign operation, are recognized in other comprehensive
income and accumulated in the translation reserve.
(3) Financial instruments
a) Classification
Financial instruments are classified into the following categories:
A financial asset is measured at amortized cost if it meets both of the following conditions and is not designated
as at fair value through profit or loss (FVTPL):
— It is held within a business model whose objective is to hold assets to collect contractual cash flows, and
— Its contractual terms give rise on specified dates to cash flows that are solely payments of principal and
interest (SPPI) on the principal amount outstanding.
A financial asset is measured at fair value through other comprehensive income (FVOCI) only if it meets
both of the following conditions and is not designated as at FVTPL:
— It is held within a business model whose objective is achieved by both collecting contractual cash flows
and selling financial assets, and
— Its contractual terms give rise on specified dates to cash flows that are solely payments of principal and
interest on the principal amount outstanding.
All financial assets not classified as measured at amortized cost or FVOCI as described above are measured at
fair value through profit or loss (FVTPL). IFRS 9 also allows entities to irrevocably designate a financial asset
that otherwise meets the requirements to be measured at amortised cost or FVOCI as FVTPL, if doing so
eliminates or significantly reduces an accounting mismatch that would otherwise arise.
On initial recognition, an equity instrument other than held for trading, may be irrevocably designated as FVOCI,
with no subsequent reclassification of profit or losses to the income statement.
Financial liabilities carried at amortised cost represent financial liabilities of the Group and the Bank other than
financial instruments designated at fair value through profit or loss. This category includes investment securities,
deposits and balances due to credit institutions, customer deposits, issued debt securities and other financial
liabilities.
Due from other credit institutions
Demand deposits with central banks, and placements with credit institutions are classified as financial assets
measured at amortised cost, provided that the following criteria are met:
• they are held within the business model, which aim is achieved by collecting contractual cash flows
(“Held to collect” business model);
• their contractual cash flows represent solely payments of principal and interest on outstanding principal ;
• the Group does not designate them on initial recognition to fair value through profit or loss measurement
category.
Business model assessment
The Group and the Bank made an assessment of the objective of the business model in which a financial asset is
held at portfolio level because this best reflects the way the business is managed and information is provided to
management. The information that is considered includes:
- the stated policies and objectives for the portfolio and the operation of those policies in practice, including
whether management’s strategy focuses on earning contractual interest revenue, maintaining a particular interest
rate profile, matching the duration of the financial assets to the duration of the liabilities that are funding those
assets or realising cash flows through the sale of assets;
BluOr Bank AS
Group’s Consolidated and Bank’s Separate Annual Report for the year ended 31 December 202 5
Notes to the Group’s Consolidated and the Bank’s Separate Financial Statements
19
- how the performance of the portfolio is evaluated and reported to the Bank’s and the Group’s management;
- the risks that affect the performance of the business model (and the financial assets held within that business
model) and how those risks are managed;
- the frequency, volume and timing of sales in prior periods, the reasons for such sales and expectations about
future sales activity. However, information about sales activity is not considered in isolation, but as part of an
overall assessment of how the Group’s and the Bank’s stated objective for managing the financial assets is
achieved and how cash flows are realised.
Financial assets that are held for trading and those that are managed and whose performance is evaluated on a fair
value basis are measured at FVTPL because they are neither held to collect contractual cash flows nor held both
to collect contractual cash flows and to sell financial assets.
Solely payments of principal and interest (SPPI) assessment
Classification for debt instruments is driven by the group business model for managing the financial assets and
whether the contractual cash flows represent solely payments of principal and interest (SPPI). If a debt instrument
is held to collect, it may be carried at amortised cost if it also meets the SPPI requirement. Debt instruments that
meet the SPPI requirement that are held in a portfolio where an entity both holds to collect cash flows and sells
assets it may be classified as FVOCI.
Making SPPI assessment, the Group and the Bank considers whether the contractual cash flows are consistent
with a basic lending arrangement i.e. interest includes only consideration for the time value of money, credit risk,
other basic lending risks and a profit margin that is consistent with a basic lending arrangement. Where the
contractual terms introduce exposure to risk or volatility that are inconsistent with a basic lending arrangement,
the related financial asset is classified and measured at fair value through profit or loss.
b) Recognition
The Group and the Bank initially recognize loans and advances, deposits, debt securities issued and subordinated
liabilities on the date at which they are originated. Regular way purchases and sales of financial assets are
recognized on the settlement date.
c) Measurement
A financial asset or financial liability is initially measured at fair value plus transaction costs that are directly
attributable to acquisition of the financial asset or liability, in the case of a financial asset or liability other than
measured at fair value through profit or loss.
Subsequent to initial recognition, all financial assets and liabilities measured at fair value through profit or loss
and all financial assets measured at FVOCI are measured at fair value.
All financial liabilities other than those measured at fair value through profit or loss and financial assets other
than those measured at FVTPL or FVOCI are measured at amortized cost using the effective interest rate method.
A gain or loss arising from a change in the fair value of a financial asset or liability is recognised as follows:
- a gain or loss on a financial asset classified as at fair value through profit or loss is recognised in profit or loss;
- a gain or loss on debt securities classified as at fair value through other comprehensive income is recognised in
fair value reserve through other comprehensive income (except for impairment losses and foreign exchange gains
or losses on monetary assets) until the asset is derecognised, at which time the cumulative gain or loss previously
recognised in equity is recognised in profit or loss. Interest in relation to debt securities classified as at fair value
through other comprehensive income is recognised as earned in profit or loss (net interest income) calculated
using the effective interest method.
- equity investments classified at fair value through other comprehensive income are subsequently measured at
fair value. Dividends are recognised as income in profit or loss. Other net gains and losses are recognised in other
comprehensive income and are never reclassified to profit or loss.
BluOr Bank AS
Group’s Consolidated and Bank’s Separate Annual Report for the year ended 31 December 202 5
Notes to the Group’s Consolidated and the Bank’s Separate Financial Statements
20
For financial assets and liabilities carried at amortised cost, a gain or loss is recognised in profit or loss when the
financial asset or liability is derecognised including the instances where the terms change substantially or
impaired.
d) Amortized cost measurement
The amortized cost of a financial asset or liability is the amount at which the financial asset or liability is measured
at initial recognition, minus principal repayments, plus or minus the cumulative amortization using the effective
interest method, minus any reduction for impairment.
The effective interest rate is a method of calculating the amortized cost of a financial asset or liability, which is
based on the recognition of interest income and expenses over a specific period. The effective interest rate is the
rate that exactly discounts estimated future cash payments or receipts through the expected life of the financial
instrument or, when appropriate, a shorter period to the net carrying amount of the financial asset or financial
liability. When calculating the effective interest rate, the management estimates cash flows considering all
contractual terms of the financial instrument but does not consider future losses. The calculation includes all fees
paid or received between parties to the contract that are an integral part of the effective interest rate, transaction
costs, and all other premiums or discounts.
e) Derecognition
A financial asset (or, where applicable a part of a financial asset or a part of a group of similar financial assets)
is derecognised when:
- the rights to receive cash flows from the asset have expired; or
- the Group and the Bank have transferred the rights to receive cash flows from the asset, or retained the right to
receive cash flows from the asset, but have assumed an obligation to pay them in full without material delay to a
third party under a ‘pass-through’ arrangement; and
- the Group and the Bank either (a) have transferred substantially all the risks and rewards of the asset, or (b) have
neither transferred nor retained substantially all the risks and rewards of the asset, but have transferred control of
the asset.
When the Group and the Bank has transferred the rights to receive cash flows from an asset or has entered into a
pass-through arrangement and have neither transferred nor retained substantially all the risks and rewards of the
asset nor transferred control of the asset, the asset is recognised to the extent of the Group’s and the Bank’s
continuing involvement in the asset. Continuing involvement that takes the form of a guarantee over the
transferred asset is measured at the lower of the original carrying amount of the asset and the maximum amount
of consideration that the Group and the Bank could be required to repay.
Where continuing involvement takes the form of a written and/or purchased option (including a cash-settled
option or similar provision) on the transferred asset, the extent of the Group’s and the Bank’s continuing
involvement is the amount of the transferred asset that the Group and the Bank may repurchase, except that in the
case of a written put option (including a cash-settled option or similar provision) on an asset measured at fair
value, the extent of the Group’s and the Bank’s continuing involvement is limited to the lower of the fair value
of the transferred asset and the option exercise price.
Financial assets – write-off. Financial assets are written-off, in whole or in part, when the Group and the Bank
exhausted all practical recovery efforts and has concluded that there is no reasonable expectation of recovery. The
write-off represents a derecognition event. The Group and the Bank may write-off financial assets that are still
subject to enforcement activity when the Group and the Bank seeks to recover amounts that are contractually due,
however, there is no reasonable expectation of recovery.
Financial assets – modification. The Group and the Bank sometimes renegotiates or otherwise modifies the
BluOr Bank AS
Group’s Consolidated and Bank’s Separate Annual Report for the year ended 31 December 202 5
Notes to the Group’s Consolidated and the Bank’s Separate Financial Statements
21
contractual terms of the financial assets. The Group and the Bank assesses whether the modification of contractual
cash flows is substantial considering, among other, the following factors: any new contractual terms that
substantially (if cash flows differs more than 10%) affect the risk profile of the asset (e.g. profit share or equity-
based return), significant change in interest rate, change in the currency denomination, new collateral or credit
enhancement that significantly affects the credit risk associated with the asset or a significant extension of a loan
when the borrower is not in financial difficulties.
If the modified terms are substantially different, the rights to cash flows from the original asset expire and the
Group and the Bank derecognises the original financial asset and recognises a new asset at its fair value. The date
of renegotiation is considered to be the date of initial recognition for subsequent impairment calculation purposes,
including determining whether a SICR has occurred. The Group and the Bank also assesses whether the new loan
or debt instrument meets the SPPI criterion. Any difference between the carrying amount of the original asset
derecognised and fair value of the new substantially modified asset is recognised in profit or loss, unless the
substance of the difference is attributed to a capital transaction with owners.
In a situation where the renegotiation was driven by financial difficulties of the counterparty and inability to make
the originally agreed payments, the Group and the Bank compares the original and revised expected cash flows
to assets whether the risks and rewards of the asset are substantially different as a result of the contractual
modification. If the risks and rewards do not change, the modified asset is not substantially different from the
original asset and the modification does not result in derecognition. The Group and the Bank recalculates the
gross carrying amount by discounting the modified contractual cash flows by the original effective interest rate
(or credit-adjusted effective interest rate for POCI financial assets), and recognises a modification gain or loss in
profit or loss.
When the contractual cash flows of a financial assets are substantially modified, such a modification is treated as
a derecognition of the original assets and the recognition of a new financial asset, and the difference in respective
carrying amounts is recognised in the income statement. In the case of financial asset modification, which does
not lead to derecognition, the Group and the Bank recalculates the gross carrying amount of the financial asset
and recognises a modification gain or loss.
A financial liability is derecognised when the obligation under the liability is discharged or cancelled or expires.
Where an existing financial liability is replaced by another from the same lender on substantially different terms,
or when the terms of an existing liability are substantially modified, such an exchange or modification is treated
as a derecognition of the original liability and the recognition of a new liability, and the difference in the respective
carrying amounts is recognised in the income statement.
f) Offsetting
Financial assets and liabilities are set off and the net amount presented in the statement of financial position when,
and only when, the Group and the Bank have a legal right to set off the amounts and intend either to settle on a
net basis or to realize the asset and settle the liability simultaneously.
Income and expenses are presented on a net basis only when permitted by the accounting standards, or for gains
and losses arising from a group of similar transactions such as in the trading activity.
(4) Identification and measurement of impairment of financial assets
Identification and measurement of impairment:
The Group and the Bank recognize an allowance for expected losses for all loans and other debt financial assets
not held at FVPL, together with loan commitments and financial guarantee contracts.
IFRS 9 requires a loss allowance to be recognized at an amount equal to either 12-month expected credit losses
(ECLs) or lifetime ECLs. Lifetime ECLs are the ECLs that result from all possible default events over the
expected life of a financial instrument, whereas 12-month ECLs are the portion of ECLs that result from default
events that are possible within 12 months after the reporting date.
BluOr Bank AS
Group’s Consolidated and Bank’s Separate Annual Report for the year ended 31 December 202 5
Notes to the Group’s Consolidated and the Bank’s Separate Financial Statements
22
The Group and the Bank recognize loss allowances at an amount equal to lifetime ECLs (Stage 2 and Stage 3
instruments), except financial instruments for which credit risk has not increased significantly since initial
recognition, for which the amount recognized will be the 12-month ECLs (Stage 1 instruments).
Accordingly, the Bank and the Group have established a policy to perform an assessment at the end of each
reporting period as to whether a given asset’s credit risk has increased significantly since initial recognition. When
determining whether the credit risk on a financial instrument has increased significantly since initial recognition,
the Bank and the Group consider reasonable and supportable information that is relevant and available without
undue cost or effort, including both quantitative and qualitative information and analysis based on the Bank’s and
the Group’s historical experience and forward-looking information. The Bank and the Group primarily identify
whether a significant increase in credit risk has occurred for an exposure by comparing the remaining lifetime
probability of default (PD) as at the reporting date, with the remaining lifetime PD for this point in time that was
estimated on initial recognition of the exposure.
Significant assets are tested for impairment on an individual basis, while for insignificant assets a collective
assessment is performed. The collective assessment is based on probabilities of default (PD) obtained from the
statistical data for the different type of loans and borrowers, adjusted by several macro factors in order to include
forward-looking information. For the individual assessment the Bank and the Group estimate ECLs based on a
probability-weighted estimate of the present value of all cash shortfalls over the remaining expected life of the
financial asset, i.e. the difference between: the contractual cash flows that are due to the Bank and the Group
under the contract, and the cash flows that they expect to receive, discounted at the effective interest rate of the
loan.
The Bank and the Group have grouped their loans into Stage 1, Stage 2 and Stage 3, based on the applied
impairment methodology, as described below:
— Stage 1 – Performing loans: when loans are first recognized, the Bank and the Group recognize an
allowance based on twelve months expected credit losses.
— Stage 2 – Loans with a significant increase in credit risk: when a loan shows a significant increase in
credit risk since initial recognition, the Bank and the Group recognize an allowance for the lifetime expected
credit loss.
In addition, a significant increase in credit risk is assumed to have taken place, if an event is reported concerning
the loan that indicates a significant increase in credit risk, the Bank and the Group expect to grant the borrower
forbearance or when forbearance measures have already taken place, or the facility is included in the watch list,
or if the borrower falls more than 30 days past due in making its contractual payments.
— Stage 3 – Impaired loans: Financial assets are recognized in Stage 3 when there is objective evidence that
the loan is impaired. This category includes non-performing loans (also defaulted) and loans in the process of
recovery. A loan is considered as defaulted, if it is clear that borrower will not be able to fulfil his obligations to
the Bank without any additional measures like realisation of collateral, or if the borrower falls more than 90 days
past due in making its contractual payments. The lifetime expected credit losses are recognized for these loans
and in addition, the Bank and the Group accrue interest income on the amortised cost of the loan net of allowances .
The Bank and the Group recognize impairment for FVOCI debt securities as applicable, depending on whether
they are classified as Stage 1, 2 or 3, as explained above. However, the expected credit losses will not reduce the
carrying amount of these financial assets in the statements of financial position, which shall remain to be stated
at fair value. Instead, an amount equal to the allowance that would arise if the assets were measured at amortised
cost will be recognized in OCI as an accumulated impairment amount, with a corresponding charge to profit or
loss.
For financial guarantee contracts, the Bank and the Group estimate their lifetime ECLs based on the present value
of the expected payments to reimburse the holder for a credit loss that is incurred less any amounts that the
guarantor expect to recover from the holder, the debtor or any other party. For other off-balance sheet loan
commitments (credit lines, overdrafts) ECL is estimated similarly to on-balance sheet instruments, applying the
certain conversion factor, which is calculated based on historical data of usage of such facilities.
BluOr Bank AS
Group’s Consolidated and Bank’s Separate Annual Report for the year ended 31 December 202 5
Notes to the Group’s Consolidated and the Bank’s Separate Financial Statements
23
(5) Fair value measurement
Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction
between market participants at the measurement date in the principal, or in its absence, the most advantageous
market to which the Group and the Bank has access at that date. The fair value of a liability reflects its non-
performance risk.
The methods described below have been used for the determination of fair values.
The best evidence of the fair value of a financial instrument at initial recognition is the transaction price, i.e., the
fair value of the consideration given or received, unless the fair value of that instrument is evidenced by
comparison with other observable current market transactions with the same instrument or based on a valuation
technique whose variables include only data from observable markets. When transaction price provides the best
evidence of fair value at initial recognition, the financial instrument is initially measured at the transaction price
and any difference between this price and the value initially obtained from a valuation model is subsequently
recognized in the profit and loss statement depending on the individual facts and circumstances of the transaction
but not later than when the valuation is supported wholly by observable market data or the transaction is closed
out.
When available, the Group and Bank measure the fair value of an instrument using quoted prices in an active
market for that instrument. A market is regarded as ‘active’ if transactions for the asset or liability take place with
sufficient frequency and volume to provide pricing information on an ongoing basis.
If a market for a financial instrument is not active, the Group and the Bank determine fair value using a valuation
technique. Valuation techniques include recent arm’s length transactions between knowledgeable, willing parties
(if available), reference to the current fair value of other instruments that are substantially the same, discounted
cash flow analyses and option pricing models. The chosen valuation technique makes maximum use of market
inputs, relies as little as possible on estimates specific to the Group and the Bank, incorporates all factors that
market participants would consider in setting a price, and is consistent with accepted economic methodologies
for pricing financial instruments.
Where third-party information, such as broker quotes or pricing services, are used to measure fair value, the Group
and the Bank assesses and documents the evidence obtained from the third parties to support the conclusion that
such valuations meet the requirements of IFRS. This includes:
- Verifying that equity broker or pricing service is approved by the Group and Bank for use in pricing the
relevant type of financial instrument;
- Understanding how the fair value has been arrived at and the extent to which it represents actual market
transactions;
- When prices for similar instruments are used to measure fair value, how these prices have been adjusted
to reflect the characteristics of the instrument subject to measurement;
Fair value is classified into different levels of the fair value hierarchy based on the inputs used in the measurement
techniques:
Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities.
Level 2: inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either
directly (i.e. as prices) or indirectly (i.e. derived from prices).
Level 3: inputs for the asset or liability that are not based on observable market data (unobservable inputs).
If the inputs used to measure the fair value of an asset or a liability might be categorized in different levels of the
fair value hierarchy, the fair value measurement is categorized in its entirety in the same level of the fair value
hierarchy as the lowest level input that is significant to the entire measurement.
The Group and the Bank recognizes transfers between levels of the fair value hierarchy as of the end of the
reporting period during which the change has occurred. For further analysis of the basis for fair value refer to
Note 41.
BluOr Bank AS
Group’s Consolidated and Bank’s Separate Annual Report for the year ended 31 December 202 5
Notes to the Group’s Consolidated and the Bank’s Separate Financial Statements
24
Assets and long positions are measured at a bid price; liabilities and short positions are measured at an asking
price. Where the Group and the Bank has positions with offsetting risks, mid-market prices are used to measure
the offsetting risk positions and a quoted bid or asking price adjustment is applied only to the net open position
as appropriate. Fair values reflect the credit risk of the instrument and include adjustments to take account of the
provisions of the instrument. Fair value estimates obtained from models are adjusted for any other factors, such
as liquidity risk or model uncertainties, to the extent that the Group and the Bank believes a third-party market
participant would take them into account in pricing a transaction.
Loans
The estimated fair value of loans represents the discounted amount of estimated future cash flows expected to be
received. The interest rated used to discount estimated cash flows are based on the prevailing money-market
interest rates curve plus an adequate credit spread.
Shares and other non-fixed income securities
The fair value of shares and other non-fixed income securities is determined by reference to their quoted bid price
at the reporting date, if available. For a number of non-listed shares where disposal was limited, it was assumed
that it was not possible to make a reliable estimate of fair value.
Derivatives
The fair value of currency swaps is estimated by discounting the contractual cash flows to be received and to be
paid in appropriate foreign currencies for the residual maturity, and translating the difference of the discounted
cash flows into euro, applying the exchange rate published by the European Central Bank. EURIBOR interest
rates are used for discounting purposes.
Liabilities to other credit institutions and customers
The estimated fair value of deposits with no stated maturity, which includes non-interest-bearing deposits, is the
amount repayable on demand, as they are largely due on demand. The estimated fair value of overnight deposits
is their carrying amount. The estimated fair value of fixed interest-bearing deposits not quoted in an active market
is based on discounted cash flows using interest rates for new deposits with similar remaining maturities.
(6) Derivatives
Derivatives include foreign currency swaps and forwards. As at 31 December 2025 and 31 December 2024 all
derivatives of the Group and the Bank were classified as financial instruments held for trading.
Derivatives are initially recognized at fair value on the date on which a derivative contract is entered into and are
subsequently remeasured at fair value. All derivatives are carried as assets when their fair value is positive and as
liabilities when their fair value is negative.
Changes in the fair value of derivatives are recognised immediately in the income statement.
Although the Group and the Bank trades in derivative instruments for risk hedging purposes, the Group and the
Bank does not apply hedge accounting.
(7) Investment property
Investment property is property held either to earn rental income or for capital appreciation or for both, but not
for sale in the ordinary course of business, use in the production or supply of goods or services or for
administrative purposes.
If the use of the property has been changed, investment properties are reclassified to property and equipment.
Investment property is initially measured at cost. Subsequently investment property is carried at its cost less any
accumulated depreciation and any accumulated impairment losses.
(8) Repossessed assets
In the normal course of business the Group and the Bank occasionally take title to property and other assets that
originally were pledged as security for a loan. When the Group and the Bank acquires (i.e. gains a full title to) an
asset in this way, the asset’s classification follows the nature of its intended use by the Group and the Bank. When
the Group or the Bank is uncertain of its intentions with respect to land and buildings that it has repossessed, those
properties are classified as assets classified as held for sale.
BluOr Bank AS
Group’s Consolidated and Bank’s Separate Annual Report for the year ended 31 December 202 5
Notes to the Group’s Consolidated and the Bank’s Separate Financial Statements
25
(9) Property and equipment
Items of property and equipment are stated at cost less accumulated depreciation and impairment losses.
Current repair and maintenance costs are charged to the income statement as incurred. Capital repairs of property
and equipment are added to property and equipment at cost, and its useful life is extended. Upon increasing the
carrying amount of an item of property and equipment by expenses incurred to replace a material component, the
replaced component is derecognised according to the derecognition requirements.
Items of property and equipment are derecognised when disposed or when no economic benefits are expected
from the use or disposal of these items in the future. Gains or losses from derecognition of items of property and
equipment are determined as the difference between the proceeds from disposal and the net carrying amount of
the asset at the date of disposal, and are recognised in the income statement.
Depreciation is charged to the income statement on a straight-line basis over the estimated useful lives of the
individual assets. Depreciation is calculated from the date of acquisition or, in respect of internally constructed
assets, from the time an asset is completed and ready for use. Where an item of property and equipment comprises
major components having different useful lives, they are accounted for as separate items of property and
equipment.
Depreciation methods, useful lives and residual amounts are reviewed at each reporting date.
Land and buildings
The cost of land and buildings disclosed in the financial statements is their assumed fair value measured at the
date of acquisition. Subsequent measurement is carried out on a cost basis similar to other items of property and
equipment. Land is not depreciated.
Construction in progress and capital repairs of real estate properties include costs directly attributable to
construction in progress, including a corresponding proportion of direct overheads incurred during the
establishment of the item of property and equipment. Depreciation of such assets is calculated from the date when
the assets are put into operation.
Real estate properties are depreciated over the useful life which is determined to be 50 years.
Leasehold improvements
Depreciation of leasehold improvements is calculated over the remaining period of lease. Depreciation is
calculated from the date when leasehold improvements are completed and ready for use.
Useful lives of vehicle and other property and equipment
The annual depreciation percentages are as follows:

Furniture and | 20%
equipment |
Computers | 25%
Mobile phones | 50%
Others | 20%
Vehicle (yacht) | 10%

(10) Intangible assets
Intangible assets, except goodwill, are identifiable non-monetary assets without physical substance (licenses,
software that is separately identifiable from electronic devices and others) held for rendering of services or other
purposes if it is expected that an economic benefit attributable to these assets will flow to the Group and the Bank.
Intangible assets are recorded at cost less accumulated amortization and amortized to the profit or loss in equal
amounts over the useful life of the intangible asset. The annual amortization rate for software is 20%.
BluOr Bank AS
Group’s Consolidated and Bank’s Separate Annual Report for the year ended 31 December 202 5
Notes to the Group’s Consolidated and the Bank’s Separate Financial Statements
26
(11) Recognition of income and expenses
All significant categories of income and expenses, including interest income and expenses, are recognized on an
accrual basis.
Interest income and expenses are recognized in the income statement based on the effective interest rate of the
asset/liability. The effective interest rate is the rate that exactly discounts the estimated future cash payments and
receipts through the expected life of the financial asset or liability (or, where appropriate, a shorter period) to the
carrying amount of the financial asset or liability. When calculating the effective interest rate, the Group and Bank
estimate future cash flows considering all contractual terms of the financial instruments, but not future credit
losses.
Interest income and expenses include discount or premium amortization or other difference between the carrying
amount of an interest bearing instrument and its value on the maturity date calculated based on the effective
interest rate method.
Fee and commission income and expense are recognised on an accrual basis. Loan origination fees together with
the related direct costs, are deferred and amortised to interest income over the estimated life of the financial
instrument using the effective interest rate method. Fee and commission income is recognised over time on a
straight line basis as the services are rendered, when the customer simultaneously receives and consumes the
benefits provided by the Group’s and the Bank’s performance. Such income includes fees for l oan, lease or other
credit enhancement contracts administration.
Net trading income comprises gains less losses related to trading financial assets and liabilities, and includes all
realized and unrealized fair value changes, interest, dividends and foreign exchange differences.
(12) Off-balance sheet items
In the ordinary course of business, the Group and the Bank has off-balance sheet financial instruments consisting
of commitments to extend loans and advances, financial guarantees and commercial letters of credit. Such
financial instruments are recorded in the balance sheet when they are funded or related fees are incurred or
received.
The Group and the Bank measures issued financial guarantees initially at their fair value, which is normally
evidenced by the amount of fees received. This fee amount is then amortised on a straight-line basis over the life
of the guarantee. At each balance sheet date, the guarantees are measured at the higher of (i) the unamortized
balance of the amount at initial recognition and (ii) Expected credit loss.
Documentary and commercial letters of credit represent written undertakings by the Bank and the Group on behalf
of a customer authorising a third party to draw drafts on the Bank and the Group up to a stipulated amount under
specific terms and conditions.
(13) Taxes
Corporate income tax for the reporting period is included in the financial statements based on the management’s
calculations prepared in accordance with Latvian Republic tax legislation. Corporate income tax is included in
the profit and loss statement line item “Corporate income tax for the reporting year” in the year for which it is
assessed and disclosed by the components in the notes to the financial statements.
Corporate income tax for the distributed profit is calculated as 20/80 of the net amount payable to shareholders.
Corporate tax on distributed profit will be recognized when the shareholders of the Company make a decision
about profit distribution.
The applicable tax rate in Latvia for undistributed profits earned till 2023 was 0%. For profits earned in 2023 or
later periods, corporate income tax should be calculated and paid in the amount of 20% from annual profit after
tax. Any amount of corporate income tax paid on undistributed profit will subsequently reduce the amount of tax
payable for distribution of profit of the particular year.
BluOr Bank AS
Group’s Consolidated and Bank’s Separate Annual Report for the year ended 31 December 202 5
Notes to the Group’s Consolidated and the Bank’s Separate Financial Statements
27
(14) Cash and cash equivalents
Cash and cash equivalents are cash on hand and amounts due from the Latvijas Banka and other credit institutions
with initial maturities of up to 3 months, except liabilities towards the Latvijas Banka and other credit institutions
with initial maturities of up to 3 months.
(15) Leases
the Group and Bank as a lessee
Where the Bank acts as a lessee, right-of-use (RoU) assets and lease liabilities arising from most leases are
recognised on the balance sheet.
Depreciation of the RoU assets and interest expenses related to lease liabilities are recognised in the income
statement. In the cash flow statement payments for the principal portion of the lease liability are presented within
financing activities and payments for the interest portion are presented within operating activities.The lease
liability is initially measured as the present value of lease payments that are not paid at the commencement date.
Over time, the liability will increase with interest expense accruals and decrease with lease payments. Lease
payments are discounted using the incremental borrowing rate. The Bank applies a single discount rate to a
portfolio of leases with reasonably similar characteristics. The RoU asset is initially measured at cost i.e. the same
amount as the initial measurement of the lease liability plus certain other costs, for example lease payments made
at or before commencement date. The RoU asset is thereafter depreciated over the lease term.
the Group as lessor
When acting as a lessor all leases shall be classified as either an operating lease or a finance lease. Operating leases
are those leases where the lessor bears the economic risks and benefits.
(16) Provisions
Provisions are recognized in the statement of financial position when the Group and the Bank have a present legal
or constructive obligation as a result of past events, it is probable that an outflow of resources embodying
economic benefits will be required to settle the obligation, and a reliable estimate of the amount of the obligation
can be made.
Provisions are determined by discounting the expected future cash flows at a pre-tax rate that reflects current
market assessments of the time value of money and, where appropriate, the risks specific to the liability.
(17) Short-term employee benefits
Short term employee benefits, including salaries and social security contributions, bonuses and vacation benefits
are included in net operation expenses on an accrual bases. The Group and the Bank pay fixed security
contributions to the State Social Fund on behalf of its employees during the employment period in accordance
with local legal requirements and the Group and the Bank will have no obligations to pay further contributions
relating to retired employees.
(18) Loans and advances to customers
Loans and advances to customers are recorded when the Group and the Bank advance money to purchase or
originate a loan due from a customer. Based on the business model and the cash flow characteristics, the Group
and the Bank classify loans and advances to customers into one of the following measurement categories: (i) AC:
loans that are held for collection of contractual cash flows and those cash flows represent SPPI and loans that are
not voluntarily designated at FVTPL, and (ii) FVTPL: loans that do not meet the SPPI test or other criteria for
AC are measured at FVTPL.
(19) Assets under management
Assets managed by the Group and the Bank on behalf of customers are not treated as assets of the Bank and the
Group. The Group and the Bank assume no risk in relation to these assets.
BluOr Bank AS
Group’s Consolidated and Bank’s Separate Annual Report for the year ended 31 December 202 5
Notes to the Group’s Consolidated and the Bank’s Separate Financial Statements
(20) Investments in debt securities and Investments in equity securities
Investment securities includes Investments in debt securities and Investments in equity securities.
Investments in debt securities. Based on the business model and the cash flow characteristics, the Group and
the Bank classifies investments in debt securities as carried at AC, FVOCI or FVTPL. Debt securities are carried
at AC if they are held for collection of contractual cash flows and where those cash flows represent SPPI, and if
they are not voluntarily designated at FVTPL in order to significantly reduce an accounting mismatch.
Debt securities are carried at FVOCI if they are held for collection of contractual cash flows and for selling, where
those cash flows represent SPPI, and if they are not designated at FVTPL. Interest income from these assets is
calculated using the effective interest method and recognised in profit or loss. An impairment allowance estimated
using the expected credit loss model is recognised in profit or loss for the year. All other changes in the carrying
value are recognised in OCI. When the debt security is derecognised, the cumulative gain or loss previously
recognised in OCI is reclassified from OCI to profit or loss.
Investments in debt securities are carried at FVTPL if they do not meet the criteria for AC or FVOCI. The Group
and the Bank may also irrevocably designate investments in debt securities at FVTPL on initial recognition if
applying this option significantly reduces an accounting mismatch between financial assets and liabilities being
recognised or measured on different accounting bases.
Investments in equity securities. Financial assets that meet the definition of equity from the issuer’s perspective,
i.e. instruments that do not contain a contractual obligation to pay cash and that evidence a residual interest in the
issuer’s net assets, are considered as investments i n equity securities by the Group. Investments in equity securities
are measured at FVTPL, except where the Group elects at initial recognition to irrevocably designate an equity
investments at FVOCI. The Group’s policy is to designate equity investments as FVOCI when those investments
are held for strategic purposes other than solely to generate investment returns. When the FVOCI election is used,
fair value gains and losses are recognised in OCI and are not subsequently reclassified to profit or loss, including
on disposal. Impairment losses and their reversals, if any, are not measured separately from other changes in fair
value. Dividends continue to be recognised in profit or loss when the Group’s right to receive payments is
established except when they represent a recovery of an investment rather than a return on such investment.
(21) New IFRS, amendments and interpretations
Standards or interpretations effective for the first time for the annual periods beginning 1 January 2025,
but these did not have a material impact on the Bank and the Group:
● Amendments to IAS 21 Lack of Exchangeability (effective for annual periods beginning on or after 1
January 2025). In August 2023, the IASB issued amendments to IAS 21 to help entities assess
exchangeability between two currencies and determine the spot exchange rate, when exchangeability
is lacking. An entity is impacted by the amendments when it has a transaction or an operation in a foreign
currency that is not exchangeable into another currency at a measurement date for a specified purpose.
The amendments to IAS 21 do not provide detailed requirements on how to estimate the spot exchange
rate. Instead, they set out a framework under which an entity can determine the spot exchange rate at the
measurement date. When applying the new requirements, it is not permitted to restate comparative
information. It is required to translate the affected amounts at estimated spot exchange rates at the date
of initial application, with an adjustment to retained earnings or to the reserve for cumulative translation
differences.
28
BluOr Bank AS
Group’s Consolidated and Bank’s Separate Annual Report for the year ended 31 December 202 5
Notes to the Group’s Consolidated and the Bank’s Separate Financial Statements
Standards or interpretations effective for the first time for the annual periods beginning after 1 January
2026 or not yet endorsed by the EU
• Amendments to the Classification and Measurement of Financial Instruments - Amendments to
IFRS 9 and IFRS 7 (effective for annual periods beginning on or after 1 January 2026). On 30 May
2024, the IASB issued amendments to IFRS 9 and IFRS 7 to:
(a) clarify the date of recognition and derecognition of some financial assets and liabilities, with a new
exception for some financial liabilities settled through an electronic cash transfer system;
(b) clarify and add further guidance for assessing whether a financial asset meets the solely payments of
principal and interest (SPPI) criterion;
(c) add new disclosures for certain instruments with contractual terms that can change cash flows (such
as some instruments with features linked to the achievement of environment, social and governance
(ESG) targets); and
(d) update the disclosures for equity instruments designated at fair value through other comprehensive
income (FVOCI).
• IFRS 18 Presentation and Disclosure in Financial Statements (effective for annual periods beginning
on or after 1 January 2027). In April 2024, the IASB has issued IFRS 18, the new standard on presentation
and disclosure in financial statements, with a focus on updates to the statement of profit or loss. The key
new concepts introduced in IFRS 18 relate to the structure of the statement of profit or loss; required
disclosures in the financial statements for certain profit or loss performance measures that are reported
outside an entity’s financial statements (that is, management-defined performance measures); and
enhanced principles on aggregation and disaggregation which apply to the primary financial statements
and notes in general. IFRS 18 will replace IAS 1; many of the other existing principles in IAS 1 are
retained, with limited changes. IFRS 18 will not impact the recognition or measurement of items in the
financial statements, but it might change what an entity reports as its ‘operating profit or loss’. IFRS 18
will apply for reporting periods beginning on or after 1 January 2027 and also applies to comparative
information.
• IFRS 19 Subsidiaries without Public Accountability: Disclosures (effective for annual periods
beginning on or after 1 January 2027, not yet endorsed by the EU).
• Annual Improvements to IFRS Accounting Standards (effective from 1 January 2026). IFRS 1 was
clarified that a hedge should be discontinued upon transition to IFRS Accounting Standards if it does not
meet the ‘qualifying criteria’, rather than ‘conditions’ for hedge accounting, in order to resolve a potential
confusion arising from an inconsistency between the wording in IFRS 1 and the requirements for hedge
accounting in IFRS 9. IFRS 7 requires disclosures about a gain or loss on derecognition relating to
financial assets in which the entity has a continuing involvement, including whether fair value
measurements included ‘significant unobservable inputs’. This new phrase replaced reference to
‘significant inputs that were not based on observable market data’. The amendment makes the wording
consistent with IFRS 13. In addition, certain IFRS 7 implementation guidance examples were clarified
and text added that the examples do not necessarily illustrate all the requirements in the referenced
paragraphs of IFRS 7. IFRS 16 was amended to clarify that when a lessee has determined that a lease
liability has been extinguished in accordance with IFRS 9, the lessee is required to apply IFRS 9 guidance

to recognise any resulting gain or loss in profit or loss. This clarification applies to lease liabilities that
are extinguished on or after the beginning of the annual reporting period in which the entity first applies
that amendment. In order to resolve an inconsistency between IFRS 9 and IFRS 15, trade receivables are

now required to be initially recognised at ‘the amount determined by applying IFRS 15’ instead of at
‘their transaction price (as defined in IFRS 15)’. IFRS 10 was amended to use less conclusive language
29

when an entity is a ‘de-facto agent’ and to clarify that the relationship described in paragraph B74 of BluOr Bank AS
IFRS 10 is just one example of a circumstance in which judgement is required to determine whether a
party is acting as a de-facto agent. IAS 7 was corrected to delete references to ‘cost method’ that was removed from IFRS Accounting Standards in May 2008 when the IASB issued amendment ‘Cost of an Investment in a Subsidiary, Jointly Controlled Entity or Associate’.

• Contracts Referencing Nature-dependent Electricity Amendments to IFRS 9 and IFRS 7 (effective
for annual periods beginning on or after 1 January 2026). 30
The management of the Group is still evaluating new standards and amendments (effective after 2025) impact on the future financial statements of the Group and the Bank. At present it is not expected that any of these will have a significant impact on the financial statements of the Group and the Bank.
4. RISK MANAGEMENT Group’s Consolidated and Bank’s Separate Annual Report for the year ended 31 December 202 5 Notes to the Group’s Consolidated and the Bank’s Separate Financial Statements Within the framework of the internal control system, the Group and the Bank have developed and follow the risk management strategy and policies, approved by the Council, which in line with the volumes, complexity and specifics of the Group’s and the Bank’s operations, define the following: 1) General guidelines observed by the Group and the Bank in their activities aimed at decreasing risks associated with their activities which might lead to losses; 2) Description of risk transactions and other risks to which the Group and the Bank are exposed; 3) Identification and management of the significant risks, including measurement, evaluation, control, and preparation of risk reports; 4) The procedure for setting limits and restrictions for risk transactions together with regular control and development; 5) Measures for the regular assessment of capital adequacy and maintenance of sufficient capital to cover the inherent risks and risks to which the Bank might be exposed to; 6) Updating of normative documents regarding the risk management process according to market changes. The risk management strategy and policies describe and determine the aggregate of measures to ensure that the possibility of suffering losses is minimized in the event the invested resources are not repaid in due time or the Bank or the Group suffers other losses. The Board of the Bank ensures the development of the risk management system as described by the risk management normative documents; the Board, the Investment Committee, Credit Committee, Non-financial Risk Management Committee and Client Activity Compliance Control Committee make the key decisions according to their regulations. Risk Officer is responsible for the overall control and monitoring of the risk management system. Independent risk management departments ensure risk management on a daily basis. The risk management system is monitored by the Internal Audit Service on a regular basis is being continuously developed pursuant to the development of the Group and the Bank and activities on financial markets. The Board, the Council and the Risk Committee regularly receive and review the information on risk management, implementation of the strategies and policies approved by the Council. The Risk Committee advises and supports the Council in relation to the current and future risk strategy of the Bank and the Group, including changes to it, taking into account changes in the type of activity of the Bank and the Group, and changes in external factors, and assists the Council in monitoring its implementation. Risk management is carried out at both the Group and Bank levels.

BluOr Bank AS
Group’s Consolidated and Bank’s Separate Annual Report for the year ended 31 December 202 5
Notes to the Group’s Consolidated and the Bank’s Separate Financial Statements
31
(1) Credit risk
Credit risk is the risk of incurring losses if the Group’s or the Bank’s counterparty or debtor fails or refuses to
fulfil its obligations towards the Group or the Bank in accordance with the contractual terms.
Credit risk is managed in accordance with the Risk Management Strategy and the Credit Risk Management Policy,
approved by the Council of the Bank. This policy details the basic principles of credit risk management,
identification, assessment, mitigation and control.
The management of risks associated with ordinary loans involves the assessment of the potential borrower’s credit
standing that is performed by the Financial Analysis and Risk Management Department. Decisions on granting
of loans are made by the Credit Committee or the Board, based on the above analysis and evaluation of collateral.
Subsequent to granting a loan, the Financial Analysis and Risk Management Department performs a regular
analysis of the borrower’s financial position, which enables the Bank and the Group to take prompt action in the
case of deterioration of the borrower’s financial position.
Following the Russian military invasion of Ukraine on 24 February 2022, the European Union, the United States
and other countries have imposed a series of financial and other sanctions against Russian and Belarusian state
institutions, companies and private individuals, resulting in a sharp collapse of Russian stock, debt and currency
markets.
The Bank does not have any assets, loans, or other financial investments that could be significantly affected by
the above events, except for one bond, for which a 100% provision has been recognised (see Note 18). Also, the
Bank does not have significant financial cooperation with financial institutions in Russia, Belarus or Ukraine. In
the light of foreseeable risks, the Group and the Bank have already taken the necessary steps to mitigate the
potential impact associated with the initiated hostilities on the territory of Ukraine and the sanctions imposed by
the international community on Russia. Therefore, the Bank does not see significant credit risks or other losses in
the context of the geopolitical situation.
Changes in residential real estate prices and transaction volumes are not significant, and the market is considered
relatively stable. However, in the new-build segment, apartment prices in Riga neighbourhoods have even
increased from approximately EUR 2,500 per m² at the beginning of 2024 to around EUR 2,800 per m² in the
fourth quarter of 2025. Taking into account the stabilisation trend of Euribor rates (the 6-month Euribor has
declined from its peak of 4.14% to 2.16% and remains stable), market participants continue to maintain a positive
outlook for the coming quarters. The Bank remains cautious and continues to closely monitor both market
developments and the financial situation of the Bank’s borrowers.
While rental rates remain fairly stable, the commercial real estate market in previous periods was primarily
influenced by Euribor rates, the increase of which led to a deterioration in borrowers’ DSCR indicators. In 2025,
Euribor rates continued to decline. The industry participant confidence index in Latvia (CBRE research) has
remained almost unchanged on a year-on-year basis.
As at the end of 2025, no significant increase in credit risk was identified among the Bank’s loan customers. In
accordance with the Borrower Credit Risk Assessment Methodology, the Bank continues to monitor the
performance of loans in order to identify at an early stage any potential signs of deterioration in borrowers’
financial condition; however, the overall quality of the loan portfolio is considered satisfactory. It should be noted
that, as at 31 December 2025, the concentration of any single industry in the Bank’s loan portfolio did not exceed
20%, and the majority of borrowers (by exposure size) are assessed on an individual basis.
Credit risk that is related to inter-bank operations (or operations with financial institutions), including the credit
risk related to inter-bank settlements and the Bank’s investments in debt securities, is controlled by the Bank’s
Investment Committee that sets limits for transactions with each counterparty and issuer.
The Bank and the Group monitor the concentration of significant assets, liabilities, as well as contingent liabilities
and commitments’ credit risk by geographical regions, customer groups and types (i.e., central governments, local
authorities, state enterprises, private enterprises, private individuals, etc.) and industries.
BluOr Bank AS
Group’s Consolidated and Bank’s Separate Annual Report for the year ended 31 December 202 5
Notes to the Group’s Consolidated and the Bank’s Separate Financial Statements
32
Impairment policies
An important part of the credit risk management is the estimation of provisions under IFRS9, which mostly is
based on the assessment of credit risk of financial instruments. As a result of the assessment, all assets are divided
into stages according to the level of credit risk and changes thereof.
The Bank and the Group recognize an allowance for expected credit losses on all loans and other debt financial
assets, except for financial assets measured at fair value through profit or loss (FVTPL), along with loan
commitments and financial guarantee contracts.
The Bank’s expected credit loss (ECL) calculations are outputs of complex models with a number of underlying
assumptions regarding the choice of variable inputs and their interdependencies. Elements of the ECL models
that are considered in accounting judgements and estimates include:
- the criteria for assessing the significance of an increase in credit risk and the criteria for granting the Stage 1,
Stage 2 or Stage 3 loans that meet the requirements of IFRS9;
- assessing the accounting interpretations and modelling assumptions used to build the ECL calculation models,
including various formulas and choice of inputs;
- modelling and calculation of key parameters of ECL model, including probability of default (PD), loss given
default (LGD) and exposure at default (EAD);
- determining the macro-economic indicators and incorporating forward-looking information into the ECL model,
as described below;
- estimating the above-mentioned indicators for individually assessed loans for a credible future period and
calculation of ECL based on cash flow.
In order to estimate ECL for debt securities, inter-bank deposits, letters of credit and financing against securities
portfolio, the statistics of historical defaults and recovery rates by Moody’s is used. Historical PD data is
accordingly applied to the external credit ratings of instruments or issuers. If an instrument does not have an
external rating, it is conservatively assumed to apply historical data corresponding to a B- rating. For instruments
with prime grades, where historical PD is equal to 0%, it is assumed to take PD=0.005%. According to this
scenario, PD ranges from 0.005% for prime grade instruments to 6.93% for instruments with the lowest ratings.
Significant increase in credit risk for such instruments is recognized, for example, if the instrument is downgraded
and PD corresponding to the new rating increases by at least 100bp or if the issuer of the security proposed to
revise the prospectus of the asset issue.
The approach for ECL calculations for a loan portfolio is based on both a collective and individual assessment.
Loans not classified as Stage 3 assets are assessed individually if they meet at least one of the following criteria:
• The balance of the principal amount of loans granted to one customer or a group of related customers
is not less than 3 million EUR;
• The balance of the principal amount of loans issued to one customer or a group of related customers
exceeds 500 thousand EUR and the total risk rating set in accordance with the “Methodology for
assessing the credit risk of borrowers” is 4 or lower.
• The risk profile of a customer (a group of related customers) is quite different from the groups for
which impairments are calculated collectively.
The calculation of collective impairments is carried out by applying a statistical model based on historical data of
the Bank’s credit portfolio for the calculation of PD rates. The Bank calculates PD rates using the Weibull
approach, which is widely used in credit institutions of various sizes, both in the domestic and foreign markets.
The Weibull approach is particularly well suited for calculating PD rates for portfolios with a low number of
historically observed defaults.
The Weibull approach is a PD calculation method that is often used in the industry when other methods based on
a larger volume of historical data cannot be applied. For example, if the homogeneous Markov chain approach is
not applicable due to insufficient historical data or few default events, the Weibull approach can be applied. With
the Weibull approach, historically observed defaults are adjusted (interpolated) to the function curve, resulting in
PD rates with relatively small amounts of data.
BluOr Bank AS
Group’s Consolidated and Bank’s Separate Annual Report for the year ended 31 December 202 5
Notes to the Group’s Consolidated and the Bank’s Separate Financial Statements
33
To calculate PD in accordance with this approach, historical transaction data on the number of new and unique
defaults are collected, aggregating the data into homogeneous groups.
For calculations of ECL at 31 December 2025 these parameters were as follows :
For calculations of ECL at 31 December 2024 these parameters were as follows :
Dividing the number of defaults by the total number of transactions in the relevant period, the default rate (DR)
and its cumulative values are calculated.
With the Weibull function, historical default data is replicated for each future period and PD cumulative rates are
calculated based on the interpolated Weibull curve. The Bank's loan portfolio is divided into five homogeneous
groups based on historical default rates by performing various statistical tests.
PD rates are calculated for each homogeneous group separately, based on the historical data of the Bank’s credit
portfolio at the end of each month for at least 36 months, covering data on the Stage classification of each
transaction and covering data on exposures assessed both individually and in homogeneous groups and on the
number of observed defaults of exposures. If the data does not reflect current market conditions or if historical
data is available for a shorter historical period, data for a shorter period of time is used, which is representative of
exposures as of the date of ECL calculation.
The Bank models the exposure at default (EAD) every time ECL is calculated based on the payment schedule
specified in the agreement and the use of unused credit limits (off-balance sheet obligations).
Loss given default (LGD) is determined at the level of the type of asset pledged in the portfolio by applying
historical statistical data on the results of recovery processes.
To adjust the ECL with macroeconomic forecasts, the Bank performs statistical calculations that take into account
historical correlations between macroeconomic indicators and the observed probability of default, and, based on
forecasts of macroeconomic indicators, determines the applicable adjustments for future PD rates. As the most
relevant forward looking indicators were identified the changes in unemployment rate and inflation rate.

Indicator | Scenario | Weight | 1Y | 2Y | 3Y
| Baseline | 60% | 3.4 | 2.1 | 2.8
Inflation rate, % | Optimistic | 15% | 3.4 | 2.1 | 2.8
| Pessimistic | 25% | 3.4 | 2.4 | 2.8
| Baseline | 60% | 6.9 | 6.7 | 6.5
Unemployment rate, % | Optimistic | 15% | 6.9 | 6.7 | 6.5
| Pessimistic | 25% | 7.2 | 7 | 6.8

Indicator | Scenario | Weight | 1Y | 2Y | 3Y
| Baseline | 60% | 1.3 | 1.5 | 1.6
Inflation rate, % | Optimistic | 15% | 1.3 | 2.1 | 1.8
| Pessimistic | 25% | 1.3 | 2.0 | 2.1
| Baseline | 60% | 7.1 | 6.7 | 6.5
Unemployment rate, % | Optimistic | 15% | 7.1 | 7.8 | 6.1
| Pessimistic | 25% | 7.1 | 7.1 | 7. 0

BluOr Bank AS
Group’s Consolidated and Bank’s Separate Annual Report for the year ended 31 December 202 5
Notes to the Group’s Consolidated and the Bank’s Separate Financial Statements
34
For the calculations of ECL and forward looking adjustments of PD rates for the next 3 years, the base scenario,
one pessimistic scenario and one optimistic scenario are used. The scenarios were developed based on
macroeconomic forecasts published by the Latvijas Banka and Latvia's Stability Program for 2024-2028.
PD and LGD rates are adjusted taking into account the weighted value of all scenarios, using the probability
distribution of scenarios as weights.
For ECL calculation, the Bank applies the PD*EAD*LGD approach. Under this approach, the PD, EAD and LGD
parameters are modelled separately and applied to each exposure on a monthly cash-flow basis in order to
determine the projected ECL amounts over the remaining lifetime of the loan up to its final maturity.
By applying the individual calculation approach, the Bank calculates the ECL over the loan’s term as the
difference between the future cash flows the Bank is entitled to under the loan agreement (the gross carrying
amount) and the future cash flows it expects to receive from the loan (the recoverable amount), incorporating the
probability of various scenarios occurring.
For Stage 1 and Stage 2 loans, in cases where the future expected cash flows from core operations are significant
and can be reliably estimated, the Bank applies the going concern principle in the base scenario.
Applying the going concern principle, the recoverable amount of the loan is calculated in accordance with the
Latvijas Banka Regulation No. 265, “Credit Risk Management Regulations”, using one of the following methods:
• Detailed cash flow analysis;
• Steady state approach;
• Two step cash flow approach.
For Stage 1 and Stage 2 loans in the negative scenario, and for Stage 3 loans in the base scenario, the gone concern
principle is applied, which assumes that the borrower’s future cash flow from the principal activity is either not
predictable or insufficient to meet most of the credit obligations and the collateral will be realised or taken over.
The future cash flows from each pledged property are calculated on an individual basis. The Bank considers
multiple sub-scenarios for the sale of the collateral and applies the expected solution to each pledged property,
i.e., the collateral will be sold.
For Stage 3 loans, the Bank assumes that the debtor will not fulfil obligations in accordance with the repayment
schedule specified in the loan agreement, and the future cash flow could result from the sale of the collateral,
minus the related expenses, discounted by applying the effective interest rate or its estimate based on the interest
rate applicable to the loan at the time of analysis, as well as on commissions for granting and servicing the
corresponding loan.
For Stage 1 and Stage 2 loans in the negative scenario, the probability of occurrence is determined based on the
PD rate for a comparable sub-portfolio evaluated in homogeneous groups. If the relevant loan has a sufficiently
different risk profile from the established homogeneous groups, the PD rates are applied based on expert
assumptions, with the rationale provided and documented in the calculation file. If the calculation includes
multiple contracts, the total PD is calculated as the weighted average based on the exposure of each contract.
To calculate the resulting provision ratio, the provision amount calculated in each scenario is multiplied by the
probability applicable to that scenario, and the results for all scenarios are summed.
For Stage 1 and Stage 2 loans in the negative scenario, and Stage 3 loans in the base scenario, it is assumed that
cash flows are only generated as a result of collateral sale. In this case, sub-scenarios may be applied, providing
for different collateral sale timelines and haircuts. The provision calculation assumes that if the recoverable
amount is greater than the loan balance, a 0.5% loss ratio is applied, assuming that the sale of the collateral may
not occur as a result of unlikely events.
Impairments for different financial instruments are recognized based on calculated ECL coefficients and these
coefficients change dynamically depending on the outstanding amount for each instrument.
(2) Currency risk
Foreign exchange risk is the risk of potential loss as a result of the revaluation of loans, liabilities, as well as
contingent liabilities and commitments denominated in foreign currencies due to change in exchange rates.
BluOr Bank AS
Group’s Consolidated and Bank’s Separate Annual Report for the year ended 31 December 202 5
Notes to the Group’s Consolidated and the Bank’s Separate Financial Statements
35
The Bank and the Group continuously monitor open positions of foreign currencies and regularly assesses the
structure of loans and liabilities by currency.
The analysis of sensitivity of the Bank’s net profit or loss for the year and comprehensive income to changes in
foreign currency exchange rates, based on the positions as of 31 December 2025 and 31 December 2024, and a
simplified scenario of a 5% change in the USD to EUR exchange rates is as follows:
2025

|  |  |  | 2024
EUR’000 | Profit or | Shareholders’ | Profit or | Shareholders’
| loss | equity | loss | equity
5% appreciation of USD against EUR | (14) | (14) | (639) | (639)
5% depreciation of USD against EUR | 14 | 14 | 639 | 639
The analysis of the foreign currency position is presented in Note 37. (3) Interest rate risk Interest rate risk is related to potential losses incurred by the Group and the Bank due to movements in interest rates. For controlling the interest rate risk, the Investment Committee performs regular analyses of assets and liabilities by maturity and type of interest. A change of interest rates by 100 basis points would result in the following changes in profit or loss and capital and reserves: |  |  |  |

| 2025 | 2024
| EUR’000 | EUR’000
EUR | 590 | 894
USD | 100 | 58
The interest reprising analysis is disclosed in Note 38. (4) Debt securities price risk Debt securities price risk is the potential loss that may arise to the debt securities included in the trading portfolio due to the decline in market prices as a result of changes in market factors. The debt securities price risk is managed by the Bank by setting limits on the total amount of the trading portfolio, as well as purchasing debt securities with relatively short maturities that are less sensitive to price risk. |  |

2025

|  |  |  | 2024 |  |
EUR’000 |  | OCI | Profit or |  |  | OCI
| Profit or loss |  | loss |  |  |
10% increase in securities prices | - | 1 032 | - |  |  | 1 431
10% decrease in securities prices | - | (1 032) | - |  | (1 | 431)

(5) Liquidity risk
Liquidity risk is the risk of potential loss as a result of sales of assets or acquisition of resources at unfavourable
prices in order for the Group and the Bank to fulfil its liabilities to creditors and depositors.
The Bank focuses on a conservative approach to liquidity management. By placing funds raised (through deposits)
in loans, the Bank provides such a credit structure as to be able to ensure its operations (execution of customer

|  |  |  | BluOr Bank AS Group’s Consolidated and Bank’s Separate Annual Report for the year ended 31 December 202 5 Notes to the Group’s Consolidated and the Bank’s Separate Financial Statements 36 payments) and compliance with regulatory requirements concerning the liquidity ratio even in case of a significant outflow of customer deposits or a significant decrease in liquidity on the securities market. The Bank’s liquidity risk management procedure is defined in the Liquidity Management Policy and consists of several components: liquidity risk indicator system, balance sheet planning, stress testing, and limits on investments in loans with limited liquidity. The purpose of liquidity risk indicators is to reflect the actual level of the Bank’s liquidity risk and quickly identify any increase in liquidity risk. The Bank’s Liquidity Risk Management Policy determines specific actions to improve the Bank’s liquidity position when liquidity risk indicators reach certain levels. Liquidity risk stress testing is aimed at measuring the deficit or surplus of the Bank’s liquid loans that may occur due to significant outflows of customer deposits or a significant decrease in liquidity on the securities market. Based on the results of stress testing, the Bank’s Investment Committee sets limits on investments in loans with limited liquidity. Liquidity Coverage Ratio (LCR) at the end date of the reporting period was as follows:
|  | 2025 | 2024 |
As at December 31 | 145.34% |  |  |

156.28%
Liquidity analysis is presented in Note 35.
(6) Country risk
Country risk is the risk of potential losses arising from transactions with residents of foreign countries (or their
securities) due to changes in the economic, political, and legal environment of the respective countries.
Before entering into transactions with residents of foreign countries, the Group and the Bank perform an
assessment of the influence of economic, social, political and legal circumstances on the residents’ ability to fulfil
their obligations.
The Group and the Bank, pursuant to the State risk management policy, set the limits for placing loans in a
particular country.
(7) Operational risk
Operational risk is the risk of losses arising from inadequate or failed internal processes, people and systems, or
from external events, and includes, inter alia, legal risk, model risk, or information and communication technology
(ICT) risk, but excludes strategic and reputational risk.
The principles of the operational risk management at the Group and the Bank are established in the internal
regulations of the Bank, by setting:
▪ Organizational structure, division of powers and the principles of delegation, functional duties, procedure
for the exchange of information among the structural units and employees;
▪ Rules, regulations and procedures for operations and other transactions, the accounting procedure and the
organisation of internal processes;
▪ Control over the compliance with the limits set for bank operations and other transactions;
▪ Rules, regulations and procedures for the functioning of information systems (technical, informational,
etc.);
▪ Procedure for granting rights of access to information and material assets;
▪ Procedure for preparing and issuing reports and other information;
▪ Procedure for motivating employees, and other matters.
To ensure efficient conditions for the identification and assessment of the operational risk at the Group and the
Bank, the Bank has established the Operational Risk Management Department, responsible for personnel training
on the matters of operational risk. The Operational Risk Management Department has an operational event
database in place, which ensures receiving information about operational risk events, thus enabling proper
recording, management and addressing of risks.
BluOr Bank AS
Group’s Consolidated and Bank’s Separate Annual Report for the year ended 31 December 202 5
Notes to the Group’s Consolidated and the Bank’s Separate Financial Statements
37
A systemic approach is applied in the identification and management of risks characteristic to new financial
services and products as part of the approval process of the new services and products. This process involves all
the structural units providing control and support functions together with structural units of the relevant business
lines in order to ensure the assessment of the new financial services or products.
The Bank’s Business Continuity Plan (BCP) includes actions and measures to be taken in various crisis situations
and related operational risks, including possible events related to disruption of IT and support services,
unavailability of critical resources or suppliers. Having assessed the Bank’s BCP and operational risks that may
arise as a result of the development of the geopolitical situation, we have concluded that the BCP includes the
main risks of a possible crisis of the geopolitical situation. The Bank has its own Client Service Centre, which
also provides the Bank’s clients with cash and settlement operations, as well as, if necessary, the Bank can quickly
increase the volumes of on-site customer service. The Bank and the Group has assessed and tested the existing
ICT infrastructure capacity and defence capacity, especially taking into account the potential of cyber-attacks and
concluded that the ICT infrastructure capabilities are sufficient to repel the most likely cyber-attacks with
acceptable impact. The general testing of the BCP is provided on a regular basis, and within its framework the
Bank ensures the provision of critical operational functions.
The Group and the Bank have also developed Action plans for various crisis situations. The Group and the Bank
have set up an independent structural unit – Internal Audit Service (IAS), the main functions of which also include
evaluation of the activities of the Group and the Bank in accordance with the applicable laws and regulations,
approved plans, policies and other internal documents of the Bank, and compliance with the internal control
procedures of the Group and the Bank’s structural units.
(8) Money laundering and terrorism and proliferation financing and sanctions risk management
The existing operating model of the Group and the Bank is based on the objective of providing high-quality
financial services to clients while ensuring an effective internal control system, thereby mitigating the risk of the
Bank becoming involved in money laundering, terrorist financing, and proliferation financing (hereinafter –
ML/TF/PF) or in the circumvention of international, OFAC, or national sanctions. The Group and the Bank
regularly enhance the internal control system with the aim of ensuring high compliance standards in the areas of
ML/TF/PF and sanctions risk management, in accordance with the requirements set out in the laws and regulations
of the Republic of Latvia, as well as international guidelines and recommendations of good practice.
The Bank has approved the “Strategy for Managing the Risk of Money Laundering, Financing of Terrorism and
Proliferation, and the Sanctions Risk”, the “Anti-Money Laundering, Combating the Financing of Terrorism and
Countering Proliferation Financing Policy”, and the “Sanctions Risk Management Policy”. These documents
define the fundamental principles for the establishment of the Bank’s internal control system for ML/TF/PF and
sanctions risk management, the allocation of responsibilities, as well as the general requirements and approach to
customer due diligence and ongoing monitoring of customer activities.
The “Anti-Money Laundering, Combating the Financing of Terrorism and Countering Proliferation Financing
Policy” establishes fundamental principles at least in the following areas:
- Customer due diligence prior to the establishment of a business relationship and throughout the duration of
the business relationship, including client identification, determination of the beneficial owner, and transaction
monitoring, in accordance with a risk-based approach:
- Assessment, identification and effective management of the customer’s ML/TF/PF and sanctions risk,
including the determination of risk-mitigation measures;
- Regular updating of client files;
- Monitoring of clients’ online transactions;
- Identification of suspicious transactions in the areas of ML/TF/PF and sanctions, and timely reporting thereof
to the Financial Intelligence Unit of the Republic of Latvia;
- Termination of business relationship with clients whose activities involve disproportionate or difficult-to-
manage ML/TF/PF or sanctions risks.
BluOr Bank AS
Group’s Consolidated and Bank’s Separate Annual Report for the year ended 31 December 202 5
Notes to the Group’s Consolidated and the Bank’s Separate Financial Statements
38
The Bank’s Strategy for Managing the ML/TF/PF and Sanctions Risk sets out the fundamental principles for the
prevention of ML/TF/PF and the management of sanctions risk, the establishment of the internal control system,
as well as measures for risk identification and the related risk-mitigation and control mechanisms. The Strategy
defines ML/TF/PF risk exposure indicators and maximum permissible thresholds in order to effectively identify,
understand, and monitor the inherent and client-activity-related ML/TF/PF and sanctions risks, ensuring that the
Bank assumes only those risks that it is capable of managing effectively.
The Strategy for Managing the ML/TF/PF and Sanctions Risk, the AML/CFT/CPF Policy, and the Sanctions Risk
Management Policy establish requirements for organisational structure elements that are based on the three lines
of defence and control principles:
— Tier 1 control — employees of the Bank’s business units responsible for client acquisition and servicing,
ensuring compliance with the Know Your Customer (KYC) and Know Your Customer’s Customer (KYCC)
principles both at the establishment of a business relationship and throughout the duration of the business
relationship. Each employee of the Bank’s business units is responsible for understanding and complying
with ML/TF/PF and sanctions risk requirements in client interactions, as well as for promoting and adhering
to a professional internal culture in accordance with the Corporate Ethics Standards Code.
— Tier 2 control — customer due diligence prior to the establishment of a business relationship and during the
business relationship, as well as monitoring of clients’ online transactions, ensuring independent customer
due diligence, analysis of client transactions, issuance of opinions on planned client transactions, and
identification and reporting of suspicious transactions to the Financial Intelligence Unit of the Republic of
Latvia. Tier 2 control also includes risk management staff and heads of structural units responsible for
supervision.
— Tier 3 control — ensured by the Internal Audit Service, which performs independent and regular
assessments of ML/TF/PF and sanctions risk management framework and internal controls, including their
effectiveness.
The Bank has appointed a Board member in charge of the ML/TF/PF and sanctions risk management, as well as
has approved employees responsible for meeting the requirements for ML/TF/PF and sanctions risk management.
The Bank has established a Client Activity Compliance Control Committee whose competence and responsibility
include decision-making on the establishment or continuation of business relationships with specific categories
of clients and/or on transactions associated with elevated or high ML/TF/PF and sanctions risk. The Client
Activity Compliance Control Committee ensures the effective functioning of the internal control system and
decides on the implementation and ongoing enhancement of risk management measures.
Overall, the Bank’s internal control system in the area of ML/TF/PF and sanctions risk management is based on
a clearly defined allocation of duties and responsibilities among structural units and employees, establishing
decision-making procedures as well as specific responsibilities for the monitoring, understanding, and due
diligence of client activities.
(9) Compliance risk management
Compliance risk is a risk that the Group or the Bank may incur losses or may be subject to legal obligations or
sanctions, or its reputation may be damaged because the Group or the Bank fails to comply with or violates
compliance requirements.
The Bank has introduced the compliance control system, which is based on the principle that the function of
compliance control in the Bank is provided by an organisationally separated unit – the Compliance Control
Department. For the purposes of ensuring the effective performance of the compliance control function, the Bank
has appointed designated compliance experts – employees of the Bank’s structural units, experts in the field
concerned.
The Bank has appointed a personal data protection officer in charge of organising, controlling and supervising
the compliance of personal data processing at the Bank with the requirements of the regulatory enactments of the
European Union and the Republic of Latvia. The main goal of the compliance control function is to ensure the
identification, assessment and management of the compliance risk. The purpose of the compliance control
BluOr Bank AS
Group’s Consolidated and Bank’s Separate Annual Report for the year ended 31 December 202 5
Notes to the Group’s Consolidated and the Bank’s Separate Financial Statements
39
function is to ensure the identification, documentation, and assessment of the compliance risk, by ensuring that
prior to the initiation of any new activity, the compliance risk associated with the respective activity is identified,
and assessing whether the Bank will comply with the compliance requirements when performing this activity.
Operational compliance describes the Bank’s ability to operate in accordance with binding compliance
requirements, which can further be subdivided in 2 levels:
- Compliance with external requirements in general (requirements integrated in the internal regulatory
documents and processes);
- Appropriate internal control system capable of ensuring continued compliance with the relevant
requirements.
The Group and the Bank have introduced an internal whistleblowing system providing for reporting on
deficiencies and other violations of the internal control system and ensuring the protection guarantees for
whistleblowers pursuant to the Whistleblowing Law.
Within the framework of corporate governance, the process of identifying and managing conflict of interest
situations, as well as preventing corruption, is constantly being improved, the approach to obtaining information
about situations that may cause conflicts of interest or corruption cases for the Bank is systematized.
The system for reporting and providing information to internal and external information requests is continuously
reviewed and updated.
Unified principles and terms for receiving outsourcing services have been established, including the conditions
for outsourcing providers, control over the execution of the outsourcing agreement and supervision of outsourcing
providers, as well as the procedures by which the Bank manages and minimizes the risks associated with
outsourcing.
(10) Sustainability, ESG risk
The Group and the Bank define ESG (Environmental, Social, and Governance) risk as the risk arising from any
negative impact on the Group’s or the Bank’s finances or reputation, resulting from the current or anticipated
impact of ESG factors on the Group or the Bank, or on the Group’s or the Bank’s business partners, invested
assets, or the Group’s or the Bank’s negative impact on ESG factors. ESG risks can manifest in traditional
financial and non-financial risk types, such as credit risk, market risk, operational risk, reputational risk, liquidity
risk, and related funding risks.
ESG factors can impact the Bank’s and the Group’s operations in the short, medium, and long term, specifically
affecting the value of the loan portfolio, investment portfolios, and other assets of the Bank and of the commercial
companies of the Group.
ESG risk management is based on the assessment of ESG factors while managing other types of risks inherent to
the Bank and the Group, such as credit risk, market risks, operational risk, reputational risk, liquidity risk, and
funding risk. ESG risk includes both environmental and climate physical risk, transition risk, social and
governance risks.
The Bank has identified the following key principles in assessing and managing the impact of ESG factors in its
daily activities:
- Setting short-term, medium-term, and long-term ESG goals in the Bank’s strategy, while simultaneously
determining the risk appetite and the level of risk tolerance;
- Incorporating the assessment of ESG factors into the credit risk evaluation process, by assessing the risks
associated with the credit project and considering them when making a decision on granting a loan;
- Creating portfolios of financial instruments – evaluating publicly available information on the issuer’s ESG
rating upon making a decision to include a new financial instrument in the Bank’s investment portfolio;
- Creating an overall ESG risk management mechanism within the Bank, i.e., identifying and assessing risks,
determining employee responsibilities, improving regulatory documents, providing employee information
and training, and regular reporting to the Board and Council on the progress of achieving the goals set in the
Bank’s strategy;
- Disclosing information and reporting on ESG risks in accordance with regulatory requirements.
BluOr Bank AS
Group’s Consolidated and Bank’s Separate Annual Report for the year ended 31 December 202 5
Notes to the Group’s Consolidated and the Bank’s Separate Financial Statements
40
(11) Capital management
The Bank’s Capital Adequacy Management Policy requires maintenance of a strong capital base so as to maintain
investor, creditor and market confidence and to sustain future development of the business as well as to ensure
the Bank’s capital at an adequate level for covering the inherent and potential risks arising from its current and
future operations.
As at 3l December 2025, the Bank's capital adequacy ratio was 18.86% (2024:18.46 %) which corresponds to the
requirements set in the Basel Capital Accord and the regulations of the Latvijas Banka. Under the capital
requirements introduced by Regulation (EU) No 575/2013 of the European Parliament and of the Council and the
Latvijas Banka, banks need to maintain a ratio of capital to risk weighted assets (“statutory capital ratio”) above
the prescribed minimum level. Although the minimum required level as at 31 December 2025 was 8%, according
to a special request by the Latvijas Banka the Bank was required to ensure a higher capital adequacy of 11.9%
during the period from 1 January 2025 (additional capital requirement - 1.9% and capital reserve requirement -
1%). In addition to the above capital requirement for the overall risk coverage, the Bank is required to maintain
compliance with the total capital reserve requirement calculated in accordance with Section 35
22
, 35
23
, 35
24
or
35
25
of the Credit Institution Law -3.37% (Capital conservation buffer – 2.50%, institution-specific
countercyclical capital buffer – 0.87%). The requirements of the total capital reserve should be met using Tier 1
capital.
As at 31 December 2025 and 31 December 2024, the Group and the Bank were in compliance with the capital
adequacy and the minimum capital requirements set out in the Credit Institutions Law and the LB regulations,
as well as in compliance with the highest indicator set by LB. The capital adequacy calculation is included in
Note 40
5. USE OF ESTIMATES AND JUDGMENTS
The preparation of financial statements in conformity with IFRS as adopted by EU requires management to make
judgements, estimates and assumptions that affect the application of policies and reported amounts of assets and
liabilities, income and expenses. Although these estimates are based on management’s best knowledge of current
events and actions, the actual results ultimately may differ from those estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to the accounting
estimates are recognized in the period, in which the estimate is revised if the revision affects only that period, or
in the period of the revision and future periods if the revision affects both current and future periods.
The Group’s and the Bank’s management makes significant estimates and judgements in respect of expected
credit losses on loans and receivables (see note “Risk management – Credit risk”).
As at 31 December 2025, the Bank is a defendant in a litigation case in Lithuania related to transactions with a
former client. Management applies significant judgement in assessing the probability of an outflow of economic
benefits and in determining whether a provision should be recognised. Based on management’s assessment,
supported by internal and external legal opinions, no provision has been recognised, as an outflow of economic
benefits is not considered probable.
The ultimate outcome of the litigation is subject to uncertainty and depends on future court decisions. Further
information on this matter is disclosed in Note 32 – Litigation.
BluOr Bank AS
Group’s Consolidated and Bank’s Separate Annual Report for the year ended 31 December 202 5
Notes to the Group’s Consolidated and the Bank’s Separate Financial Statements
41
6. NET INTEREST INCOME

|  | 2025 |  | 2024
| Group | Bank | Group | Bank
| EUR'000 | EUR’000 | EUR’000 | EUR’000
Interest income |  |  |  |
Interest income from financial assets at amortized | 46 257 | 45 500 | 49 875 | 48 754
cost (loans): |  |  |  |
Deposits with credit institutions | 9 034 | 9 034 | 13 935 | 13 935
Loans and receivables | 37 223 | 36 | 35 | 34
|  | 466 | 940 | 819
including interest income on impaired loans | 288 | 288 | 470 | 470
Interest income from financial assets measured at fair value through other comprehensive income | 473 | 473 | 447 | 447
Interest income from financial assets measured at amortised cost (fixed income securities) | 889 | 889 | 1 158 | 1 158
Other interest income | 104 | 104 | 180 | 180
Total interest income | 47 723 | 46 966 | 51 660 | 50 539
Interest expense |  |  |  |
Interest expense from liabilities measured at amortized cost: | 14 735 | 14 795 | 18 615 | 18 668
Deposits | 14 735 | 14 795 | 18 615 | 18 668
Interest expense on issued bonds | 3 446 | 3 446 | 1 773 | 1 773
Payments to the Deposit Guarantee Fund and other funds | 1 255 | 1 255 | 1 299 | 1 299
Other interest expense | 1 052 | 1 332 | 755 | 1 052
Total interest expense | 20 488 | 20 828 | 22 442 | 22 792
Net interest income | 27 235 | 26 138 | 29 218 | 27 747

BluOr Bank AS
Group’s Consolidated and Bank’s Separate Annual Report for the year ended 31 December 202 5
Notes to the Group’s Consolidated and the Bank’s Separate Financial Statements
42
7. NET FEE AND COMMISSION INCOME

|  | 2025 |  | 2024
| Group | Bank | Group | Bank
| EUR’000 | EUR’000 | EUR’000 | EUR’000
Fee and commission income |  |  |  |
Money transfers | 1 417 | 1 417 | 1 150 | 1 151
Commissions on loans monitoring and service | 1 365 | 1 365 | 833 | 833
Securities transactions | 1 466 | 1 466 | 1 500 | 1 500
Assets management | 2 724 | 2 724 | 1 538 | 1 538
Client service | 8 407 | 8 407 | 9 134 | 9 134
Payment card service | 3 070 | 3 070 | 2 214 | 2 214
Total fee and commission income | 18 449 | 18 449 | 16 369 | 16 370
Fee and commission expense |  |  |  |
Money transfers | 131 | 131 | 78 | 77
Payment card service | 2 247 | 2 247 | 1 618 | 1 618
Securities transactions | 451 | 451 | 535 | 535
Other commission expense | 21 | 21 | 4 | 4
Total fee and commission expenses | 2 850 | 2 850 | 2 235 | 2 234
Net fee and commission income | 15 599 | 15 599 | 14 134 | 14 136

Fee and commission income and expense is accounted according to the point in time principles. The Group and
the Bank did not have any agreements with multiple performance obligations.
8. NET (LOSS) / PROFIT FROM TRADING AND REVALUATION OF FINANCIAL
INSTRUMENTS

|  | 2025 |  | 2024
| Group | Bank | Group | Bank
| EUR’000 | EUR’000 | EUR’000 | EUR’000
Net loss from trading with financial assets not measured at fair value through profit or loss | 130 | 130 | (281) | (281)
Net profit from revaluation of financial assets and liabilities at fair value through profit or loss | 71 | 71 | 129 | 129
Net loss from trading and revaluation of financial | 201 | 201 | (152) | (152)
instruments |  |  |  |

BluOr Bank AS
Group’s Consolidated and Bank’s Separate Annual Report for the year ended 31 December 202 5
Notes to the Group’s Consolidated and the Bank’s Separate Financial Statements
43
9. NET FOREIGN EXCHANGE TRADING AND REVALUATION INCOME

|  | 2025 |  | 2024
| Group | Bank | Group | Bank
| EUR’000 | EUR’000 | EUR’000 | EUR’000
Net profit from foreign exchange transactions | 2 449 | 2 449 | 783 | 783
Net (loss) from revaluation of foreign exchange | (110) | (110) | (109) | (109)
Net foreign exchange income | 2 339 | 2 339 | 674 | 674

10. OTHER OPERATING INCOME

|  | 2025 |  | 2024
| Group | Bank | Group | Bank
| EUR’000 | EUR’000 | EUR’000 | EUR’000
Income from the sale of non-current assets classified as held for sale | - | - | 1 250 | 1 250
Fines received | 224 | 224 | 208 | 208
Dividends received | 19 | 19 | 15 | 15
Rental income from POS terminals | 80 | 80 | 72 | 72
Rental income from safe boxes | 64 | 64 | 51 | 51
Rental income from non-current assets classified as held for sale | - | - | 462 | 462
Income from insurance companies (bank as agent) | 98 | 98 | 109 | 109
Other | 504 | 526 | 405 | 348
Total other operating income | 989 | 1 011 | 2 572 | 2 515

11. ADMINISTRATIVE EXPENSES |  |  |  |  |
|  |  | 2025 |  | 2024
|  | Group | Bank | Group | Bank
|  | EUR’000 | EUR’000 | EUR’000 | EUR’000
Salaries to the members of the Board and Council |  | 1 498 | 1 498 | 1 368 | 1 368
Staff remuneration |  | 11 636 | 11 480 | 10 107 | 9 896
Compulsory state social security contributions (Board |  | 340 | 340 | 315 | 315
and Council) |  |  |  |  |
Compulsory state social security contributions (staff) |  | 2 736 | 2 700 | 2 265 | 2 215
Other staff costs |  | 53 | 51 | 65 | 63
Communications and transport |  | 272 | 264 | 262 | 255
Professional services |  | 1 358 | 1 329 | 1 037 | 803
Public utilities and maintenance |  | 861 | 831 | 732 | 666
Depreciation costs | 21 | 1 163 | 968 | 1 162 | 967
Amortization costs | 22 | 74 | 74 | 139 | 139
Computer network |  | 474 | 474 | 420 | 420
Advertisement and marketing expenses |  | 210 | 210 | 265 | 265

BluOr Bank AS
Group’s Consolidated and Bank’s Separate Annual Report for the year ended 31 December 202 5
Notes to the Group’s Consolidated and the Bank’s Separate Financial Statements
44

Other taxes | 685 | 487 | 823 | 631
Insurance | 141 | 136 | 126 | 122
Audit fee | 183 | 183 | 162 | 162
Other | 287 | 280 | 276 | 271
Total administrative expenses | 21 971 | 21 305 | 19 524 | 18 558

The average number of employees in the Group in 2025 was 263 (2024 – 241) and in the Bank was 258 (2024 –
236).
The line-item “Staff remuneration” includes also share-based compensation to employees. Share-based
compensation is allotted in the form of so-called performance rights and accrued over the duration of each
program. In 2025, the total amount of expenses related to share-based compensation was 93 thousand EUR. In
2024 performance rights were not granted. Delivery of shares is conditional on continued employment.
The reported cost of each programme can change during the period until the delivery date if the performance
amount changes or because the performance rights are forfeited.
In 2025, performance rights to members of the Council and the Board members were not granted.
Salaries to the members of the Board and Council comprise only short-term employee benefits, no other benefits were
awarded to key management personnel during 2024 and 2025.
In 2025, the remuneration of the sworn auditor was 183 thousand EUR, including 169 thousand EUR for the
audit of financial statements (consolidated financial statements), 7 thousand EUR for the certification task
related to the conclusion whether the Bank has complied with the requirements of the Financial Instruments
Market Law with respect to its obligations regarding the separation of financial instruments, the separate
holding of financial instruments and funds of clients, and 7 thousand EUR for the certification task related to
the conclusion whether the Bank has complied with the requirements of the Deposit Guarantee Law in
preparing its report on covered deposits and payments to the Deposit Guarantee Fund.
In 2024, the remuneration of the sworn auditor was 161.8 thousand EUR, including 149.8 thousand EUR for
the audit of financial statements (consolidated financial statements), 6 thousand EUR for the certification task
related to the conclusion whether the Bank has complied with the requirements of the Financial Instruments
Market Law with respect to its obligations regarding the separation of financial instruments, the separate
holding of financial instruments and funds of clients, and 6 thousand EUR for the certification task related to
the conclusion whether the Bank has complied with the requirements of the Deposit Guarantee Law in
preparing its report on covered deposits and payments to the Deposit Guarantee Fund.
12. OTHER OPERATING EXPENSES

|  | 2025 |  | 2024
| Group | Bank | Group | Bank
| EUR’000 | EUR’000 | EUR’000 | EUR’000
Membership fees | 429 | 429 | 380 | 380
Royalties for the use of a trademark | - | - | 1 162 | 1 162
Other | 267 | 272 | 474 | 482
Total other operating expenses | 696 | 701 | 2 016 | 2 024

BluOr Bank AS
Group’s Consolidated and Bank’s Separate Annual Report for the year ended 31 December 202 5
Notes to the Group’s Consolidated and the Bank’s Separate Financial Statements
45
In 2024, as part of its operating activities the Bank made payments of EUR 1 162 thousand for the use of the
registered trademark BluOr to the owner of this trademark (licensor). In 2025, the Bank acquired the ‘BluOr’
trademark from its prior owner. 2024 was the last year when the Bank made payments for the use of the
licensed ‘BluOr’ trademark.
13. CORPORATE INCOME TAX

|  | 2025 |  | 2024
| Group | Bank | Group | Bank
| EUR’000 | EUR’000 | EUR’000 | EUR’000
Profit before taxation | 23 380 | 22 597 | 22 008 | 22 393
Corporate income tax for additional payment for credit institutions | (4 518) | (4 518) | (4 462) | (4 462)
Corporate income tax for the conditionally | (14) | (8) | (81) | (81)
distributed profit |  |  |  |
Total corporate income tax | (4 532) | (4 526) | (4 543) | (4 543)

Effective tax rate | 19% |  | 20% | 21% |  | 20%
Income tax liabilities |  | 2025 |  |  | 2024 |
| Group |  | Bank | Group |  | Bank
| EUR’000 |  | EUR’000 | EUR’000 |  | EUR’000
Corporate income tax for additional payment for credit institutions | (4 518) |  | (4 518) | (4 462) |  | (4 462)
Corporate income tax for the conditionally |  |  |  |  |  |
distributed profit | 9 |  | 9 | 7 |  | 7
Total income tax liabilities | (4 509) |  | (4 509) | (4 455) |  | (4 455)

From 1 January 2024, a change in corporate income tax (CIT) legislation was adopted in Latvia stipulating an
advance CIT payable at 20% rate on profit after tax. The CIT advance is applicable to banks and leasing entities.
Advance corporate income tax paid is eligible to fully offset dividend distribution tax with no expiry date.
In 2025, a solidarity contribution was introduced for credit institutions for a three-year period. The law provides
a rebate mechanism of up to 100%, conditional on achieving a required lending growth rate. During the reporting
year, the Bank qualified for a 100% rebate.
14. CASH AND DEMAND DEPOSITS WITH CENTRAL BANK

|  | 2025 |  | 2024
| Group | Bank | Group | Bank
| EUR’000 | EUR’000 | EUR’000 | EUR’000
Cash | 542 | 542 | 391 | 391
Balance with the Latvijas Banka (including the minimum | 397 842 | 397 842 | 409 154 | 409 154
reserve deposit) |  |  |  |
Total | 398 384 | 398 384 | 409 545 | 409 545

BluOr Bank AS
Group’s Consolidated and Bank’s Separate Annual Report for the year ended 31 December 202 5
Notes to the Group’s Consolidated and the Bank’s Separate Financial Statements
46
According to the regulations of the Latvijas Banka the total amount of funds on the account with the Central
Bank should not be less than the amount of the obligatory reserves calculated from the average amount of
customer deposits during the month. The obligatory reserve as at 31 December 2025 was EUR 9 829 thousand
(2024: EUR 8 415 thousand).
Cash and balances with the Latvijas Banka are available on demand, thus, taking into account very low
probabilities of default of these balances, expected credit loss is immaterial.
15. LOANS AND RECEIVABLES FROM CREDIT INSTITUTIONS

| 31.12.2025 |  | 31.12.2024 |
| Group | Bank | Group | Bank
| EUR’000 | EUR’000 | EUR’000 | EUR’000
Demand deposits with credit institutions |  |  |  |
Credit institutions registered in OECD countries | 8 748 | 8 744 | 5 029 | 4 921
Credit institutions of other countries | 3 548 | 3 548 | 2 701 | 2 701
Total demand deposits with credit institutions | 12 296 | 12 292 | 7 730 | 7 622

The Group and the Bank did not have significant exposures on the credit institutions in Russia or Ukraine.
Deposits with credit institutions 2025
Group, EUR’000

| Stage 1 | Stage 2 | Stage 3 | Total
Net | 12 296 | - | - | 12 296

Deposits with credit institutions 2025
Bank, EUR’000

| Stage 1 | Stage 2 | Stage 3 | Total
Net | 12 292 | - | - | 12 292

Deposits with credit institutions 2024 |  |  |  |
Group, EUR’000 |  |  |  |
| Stage 1 | Stage 2 | Stage 3 | Total

BluOr Bank AS
Group’s Consolidated and Bank’s Separate Annual Report for the year ended 31 December 202 5
Notes to the Group’s Consolidated and the Bank’s Separate Financial Statements
47

Net | 7 730 | - | - | 7 730

Deposits with credit institutions 2024
Bank, EUR’000

| Stage 1 | Stage 2 | Stage 3 | Total
Net | 7 622 | - | - | 7 622

The Bank’s demand deposits with credit institutions based on rating agency ratings are as follows:

| 31.12.2025 | 31.12.2024
| EUR’000 | EUR’000
Rated from AAA to A- | 6 248 | 3 819
Rated from BB+ to BB- | 2 809 | 8
Rated below BB- | - | 718
Not rated | 3 235 | 3 077
Total deposits with credit institutions | 12 292 | 7 622

The Bank has established its own methodologies for assessment of creditworthiness for credit institutions with
no external rating assigned. The Bank maintains a system of limits, where maximum exposure limits are
assigned for each counterparty based on the external rating assigned by a rating agency or internal individual
credit risk assessment performed by the Bank.
As at 31 December 2025, the Bank had correspondent accounts with 14 banks (2024: 15). The largest account
balances exceeding 10% of total deposits with credit institutions were with EUROCLEAR BANK – 3 273
thousand EUR (2024 – 2 200 thousand EUR),
16. INVESTMENT SECURITIES
Investment securities

| 31.12.2025 |  | 31.12.2024 |
| Group | Bank | Group | Bank
| EUR’000 | EUR’000 | EUR’000 | EUR’000
Non- fixed income securities |  |  |  |
SWIFT | 28 | 28 | 23 | 23
VISA INC | 540 | 540 | 543 | 543
Non- fixed income securities | 568 | 568 | 566 | 566
Fixed income securities |  |  |  |
At fair value through other comprehensive income | 10 320 | 10 320 | 14 314 | 14 314

BluOr Bank AS
Group’s Consolidated and Bank’s Separate Annual Report for the year ended 31 December 202 5
Notes to the Group’s Consolidated and the Bank’s Separate Financial Statements
48

At amortised cost (see Note 18) | 42 372 | 42 372 | 54 626 | 54 626
Fixed income securities | 52 692 | 52 692 | 68 940 | 68 940
Investment securities total | 53 260 | 53 260 | 69 506 | 69 506

Investment securities measured at fair value through other comprehensive income based on rating agency
ratings are as follows (Group and Bank):

| 2025 | 2024
Fixed income securities | EUR’000 | EUR’000
Fixed income securities issued by credit institutions of Latvia |  |
Rated from BBB+ to BBB- | - | 1 903
Total fixed income securities issued by credit institutions of Latvia | - | 1 903
Fixed income securities issued by corporates of Latvia |  |
Not rated | 1 601 | 676
Total fixed income securities issued by corporates of Latvia | 1 601 | 676
Fixed income securities issued by central governments of OECD countries |  |
Rated from AAA to A- | 4 810 | 4 879
Total fixed income securities issued by central governments of OECD | 4 810 | 4 879
countries |  |
Fixed income securities issued by credit institutions of OECD countries |  |
Rated from BBB+ to BB- | 1 093 | 1 054
Total fixed income securities issued by credit institutions of OECD countries | 1 093 | 1 054
Fixed income securities issued by corporates of OECD countries |  |
Rated from BBB+ to BB- | 2 816 | 5 802
Total fixed income securities issued by corporates of OECD countries | 2 816 | 5 802
Total fixed income securities | 10 320 | 14 314
Expected credit loss allowance | (70) | (74)

In order to conservatively calculate ECL for not rated securities, PD which corresponds to B- rating is applied.
BluOr Bank AS
Group’s Consolidated and Bank’s Separate Annual Report for the year ended 31 December 202 5
Notes to the Group’s Consolidated and the Bank’s Separate Financial Statements
49
Financial assets measured at fair value through profit and loss

|  | 2025 |  | 2024
| Group | Bank | Group | Bank
| EUR’000 | EUR’000 | EUR’000 | EUR’000
Shares and other non-fixed income securities |  |  |  |
Shares in VISA INC | 540 | 540 | 543 | 543
Total of shares and other securities with non-fixed | 540 | 540 | 543 | 543
income |  |  |  |

Financial assets measured at fair value through other comprehensive income (fixed income securities), 2025

Group and Bank, EUR’000 | Stage 1 | Stage 2 | Stage 3 | Total
Gross | 9 266 | 1 054 | - | 10 320
Expected credit loss allowance | (57) | (13) | - | (70)
Net | 9 209 | 1 041 | - | 10 250

Financial assets measured at fair value through other comprehensive income (fixed income securities), 2024

Group and Bank, EUR’000 | Stage 1 | Stage 2 | Stage 3 | Total
Gross | 14 314 | - | - | 14 314
Expected credit loss allowance | (74) | - | - | (74)
Net | 14 240 |  |  | 14 240

Information about expected credit loss allowances, 2025

Group and Bank, EUR’000 | Stage 1 | Stage 2 | Stage 3 | Total
Opening balance at 1 January 2025 | 74 | - | - | 74
Transfers due to change in credit risk: |  |  |  |
-to lifetime (from Stage 1 to Stage 2) | (13) | 13 | - | -
-remaining credit risk changes | - | - | - |
New originated or purchased | (4) | - | - | (4)
Derecognised |  | - |  |
Change for the year | - | - | - |

BluOr Bank AS
Group’s Consolidated and Bank’s Separate Annual Report for the year ended 31 December 202 5
Notes to the Group’s Consolidated and the Bank’s Separate Financial Statements
50

FX and other movements |  | - | - |
Closing balance at 31 December 2025 | 57 | 13 | - | 70

Information about expected credit loss allowances, 2024

Group and Bank, EUR’000 | Stage 1 | Stage 2 | Stage 3 | Total
Opening balance at 1 January 2024 | 53 | - | - | 53
Transfers due to change in credit risk: |  |  |  |
-remaining credit risk changes | - | - | - | -
New originated or purchased | 21 | - | - | 21
Derecognised | - | - | - | -
Change for the year | - | - | - | -
FX and other movements | - | - | - | -
Closing balance at 31 December 2024 | 74 | - | - | 74

17. LOANS AND RECEIVABLES
(a) Loans

| 31.12.2025 |  |  | 31.12.2024 |
| Group | Bank | Group |  | Bank
| EUR’000 | EUR’000 | EUR’000 |  | EUR’000
Financial | 29 518 | 29 518 | 29 712 |  | 29 712
institutions |  |  |  |  |
Corporates | 577 686 | 568 313 | 470 378 |  | 450 699
Individuals | 23 863 | 23 863 | 13 881 |  | 13 881
Total loans and receivables | 631 067 | 621 694 | 513 971 |  | 494 292
Expected credit |  |  |  |  |
loss allowance |  |  |  |  |
Financial | (410) | (410) | (437) |  | (437)
institutions |  |  |  |  |
Corporates | (4 629) | (4 590) | (4 574) |  | (3 621)
Individuals | (259) | (259) | (304) |  | (304)
Total expected |  |  |  |  |
credit loss | (5 298) | (5 259) | (5 315) |  | (4 362)
allowance |  |  |  |  |
Net loans and receivables | 625 769 | 616 435 | 508 656 |  | 489 930
(b) Analysis of loans | 31.12.2025 |  |  | 31.12.2024 |
by type |  |  |  |  |

BluOr Bank AS
Group’s Consolidated and Bank’s Separate Annual Report for the year ended 31 December 202 5
Notes to the Group’s Consolidated and the Bank’s Separate Financial Statements
51
Group

|  | Bank | Group | Bank
| EUR’000 | EUR’000 | EUR’000 | EUR’000
Loan portfolio |  |  |  |
Corporate loans | 474 455 | 474 455 | 306 738 | 306 738
Payment cards loans | 558 | 558 | 523 | 523
Loans secured by real | 129 981 | 129 981 | 165 540 | 165 540
estate collateral |  |  |  |
Finance lease | 12 257 | 2 884 | 23 921 | 4 242
Trade finance | 11 637 | 11 637 | 11 266 | 11 266
Other loans | - | - | 2 740 | 2 740
Total loan portfolio | 628 888 | 619 515 | 510 728 | 491 049
Securities-backed |  |  |  |
loans |  |  |  |
Securities-backed | 2 179 | 2 179 | 3 243 | 3 243
financing |  |  |  |
Total securities- backed loans | 2 179 | 2 179 | 3 243 | 3 243
Total loans and receivables | 631 067 | 621 694 | 513 971 | 494 292
Total expected credit | (5 298) | (5 259) | (5 315) | (4 362)
loss allowance |  |  |  |
Net loans and receivables | 625 769 | 616 435 | 508 656 | 489 930

(c) Geographical segmentation of loans

| 31.12.2025 |  | 31.12.2024 |
| Group | Bank | Group | Bank
| EUR’000 | EUR’000 | EUR’000 | EUR’000
Loans to residents of Latvia | 455 790 | 455 790 | 355 221 | 355 221
Loans to residents of OECD countries | 62 187 | 62 187 | 56 374 | 56 374
Loans to residents of non-OECD countries | 113 090 | 103 717 | 102 376 | 82 697
Total loans and receivables | 631 067 | 621 694 | 513 971 | 494 292
Total expected credit loss allowance | (5 298) | (5 259) | (5 315) | (4 362)
Net loans and receivables | 625 769 | 616 435 | 508 656 | 489 930
The Group and the Bank has no exposures (loans) on entities or individuals in Russia or in Ukraine. |  |  |  |
(d) Ageing structure of the loan portfolio |  |  |  |

BluOr Bank AS
Group’s Consolidated and Bank’s Separate Annual Report for the year ended 31 December 202 5
Notes to the Group’s Consolidated and the Bank’s Separate Financial Statements
52
Bank

EUR’000 |  | Of which not |  |  |  | Of which past due by the following terms | Net
| Total | past due on |  |  |  |  | carrying
| EUR | the | Less than | 31-90 | 91-180 | More than | amount of
As at 31 December 2025 | ’000 | reporting | 30 days | days | days | 180 days | overdue
|  | date |  |  |  |  | loans
Net carrying amount | 616 435 | 597 755 | 16 299 | 2 | - | 2 379 | 18 680
Out of which impaired | 4 437 | 1 955 | 103 | - | - | 2 379 | 2 482
As at 31 December 2024 |  |  |  |  |  |  |
Net carrying amount | 489 930 | 476 597 | 10 598 | 105 | 777 | 1 853 | 13 333
Out of which impaired | 4 853 | 2 091 | 41 | 91 | 777 | 1 853 | 2 762

Group

EUR’000 |  | Of which not |  |  |  | Of which past due by the following terms | Net
| Total | past due on |  |  |  |  | carrying
| EUR | the | Less than | 31-90 | 91-180 | More than | amount of
As at 31 December 2025 | ’000 | reporting | 30 days | days | days | 180 days | overdue
|  | date |  |  |  |  | loans
Net carrying amount | 625 769 | 607 089 | 16 299 | 2 | - | 2 379 | 18 680
Out of which impaired | 4 437 | 1 955 | 103 | - | - | 2 379 | 2 482
As at 31 December 2024 |  |  |  |  |  |  |
Net carrying amount | 508 656 | 486 868 | 10 598 | 8 560 | 777 | 1 853 | 21 788
Out of which impaired | 13 308 | 2 091 | 41 | 8 546 | 777 | 1 853 | 11 217

The Banks’s ageing structure.
Expected credit loss allowance, 2025

| Stage 1 | Stage 2 | Stage 3 | Total
Gross | 589 760 | 23 739 | 8 195 | 621 694
(Less) expected credit loss allowance | (402) | (1 099) | (3 758) | (5 259)
Net | 589 358 | 22 640 | 4 437 | 616 435
Expected credit loss allowance, 2024 | Stage 1 | Stage 2 | Stage 3 | Total
Gross | 472 528 | 13 064 | 8 700 | 494 292
(Less) expected credit loss allowance | (502) | (13) | (3 847) | (4 362)
Net | 472 026 | 13 051 | 4 853 | 489 930

BluOr Bank AS
Group’s Consolidated and Bank’s Separate Annual Report for the year ended 31 December 202 5
Notes to the Group’s Consolidated and the Bank’s Separate Financial Statements
53
The Group’s ageing structure
Expected credit loss allowance, 2025

| Stage 1 | Stage 2 | Stage 3 | Total
Gross | 599 133 | 23 739 | 8 195 | 631 067
(Less) expected credit loss allowance | (441) | (1 099) | (3 758) | (5 298)
Net | 598 692 | 22 640 | 4 437 | 625 769

Expected credit loss allowance, 2024

| Stage 1 | Stage 2 | Stage 3 | Total
Gross | 482 842 | 13 064 | 18 065 | 513 971
(Less) expected credit loss allowance | (545) | (13) | (4 757) | (5 315)
Net | 482 297 | 13 051 | 13 308 | 508 656

(e) Impaired loans

| 31.12.2025 |  |  | 31.12.2024
| EUR’000 |  |  | EUR’000
| Group | Bank | Group | Bank
Impaired loans, gross | 8 195 | 8 195 | 18 065 | 8 700
Expected credit loss allowance | (3 758) | (3 758) | (4 757) | (3 847)
Net loans and receivables | 4 437 | 4 437 | 13 308 | 4 85 3

The extent to which collateral and other credit enhancements mitigate credit risk for financial assets carried at
amortised cost that are credit impaired, is presented by disclosing collateral values separately for (i) those assets
where collateral and other credit enhancements are equal to or exceed carrying value of the asset (“over-
collateralised assets”) and (ii) those assets where collateral and other credit enhancements are less than the
carrying value of the asset (“under-collateralised assets”).
The effect of collateral on credit impaired assets at 31 December 2025 is as follows.
Bank

|  | Over-collateralised assets |  | Under-collateralised assets
| Carrying value | Value of | Carrying value | Value of
| of the assets | collateral | of the assets | collateral
Loans to corporate customers | 4 062 | 10 321 | - | -
Loans to SME | 4 062 | 10 321 | - | -
|  |  | - | -
Loans to individuals | 375 | 1 037 | - | -
Consumer loans | 375 | 1 037 | - | -

BluOr Bank AS
Group’s Consolidated and Bank’s Separate Annual Report for the year ended 31 December 202 5
Notes to the Group’s Consolidated and the Bank’s Separate Financial Statements
54
The effect of collateral on credit impaired assets at 31 December 2024 is as follows.

|  | Over-collateralised assets |  | Under-collateralised assets
| Carrying value | Value of | Carrying value | Value of
| of the assets | collateral | of the assets | collateral
Loans to corporate customers | 4 462 | 13 266 | - | -
Loans to SME | 4 462 | 13 266 | - | -
|  |  | - | -
Loans to individuals | 391 | 1 046 | - | -
Consumer loans | 391 | 1 046 | - | -

The effect of collateral on credit impaired assets at 31 December 2025 is as follows.
Group

|  | Over-collateralised assets |  | Under-collateralised assets
| Carrying value | Value of | Carrying value | Value of
| of the assets | collateral | of the assets | collateral
Loans to corporate customers | 4 062 | 10 321 | - | -
Loans to SME | 4 062 | 10 321 | - | -
|  |  | - | -
Loans to individuals | 375 | 1 037 | - | -
Consumer loans | 375 | 1 037 | - | -
The effect of collateral on credit impaired assets at 31 December 2024 is as follows (Restated) | Over-collateralised assets | Under-collateralised assets
| Carrying value | Value of | Carrying value | Value of
| of the assets | collateral | of the assets | collateral
Loans to corporate customers | 12 917 | 28 098 | - | -
Loans to SME | 12 917 | 28 098 | - | -
|  |  | - | -
Loans to individuals | 391 | 1 046 | - | -
Consumer loans | 391 | 1 046 | - | -

BluOr Bank AS
Group’s Consolidated and Bank’s Separate Annual Report for the year ended 31 December 202 5
Notes to the Group’s Consolidated and the Bank’s Separate Financial Statements
55
(f) Movements in the expected credit loss allowance
Movements in the loan impairment allowance for the year ended 31 December 2025 are as follows:

Bank, EUR’000 |  | Credit loss allowance |  |  |  |  | Gross carrying amount of loans |
Corporates and financial | Stage 1 | Stage 2 | Stage 3 | Total | Stage 1 | Stage 2 | Stage 3 | Total
institutions |  |  |  |  |  |  |  |
Opening balance at 1 | 416 | 10 | 3 632 | 4 058 | 460 995 | 11 322 | 8 094 | 480 411
January 2025 |  |  |  |  |  |  |  |
Transfers due to change in credit risk: |  |  |  |  |  |  |  |
-to lifetime (from Stage 1 | (92) | 92 | - | - | (28 431) | 28 431 | - | -
and Stage 3 to Stage 2) |  |  |  |  |  |  |  |
-to credit-impaired (from Stage 1 and Stage 2 to Stage | (25) | - | 25 | - | (25) | - | 25 | -
3) |  |  |  |  |  |  |  |
to Stage 1 from Stage 2 | 9 | (9) | - | - | 3 627 | (3 627) | - | -
-remaining credit risk | - | 1 009 | - | 1 009 | - | - | - | -
changes |  |  |  |  |  |  |  |
New originated or purchased | 87 | - | - | 87 | 247 498 | - | - | 247 498
Derecognised | (82) | (5) | (66) | (153) | (116 403) | (13 209) | (466) | (130 078)
Change for the year | (103) | 1 087 | (41) | 943 | 106 266 | 11 595 | (441) | 117 420
FX and other movements | - | - | - | - | - | - | - | -
Closing balance at 31 | 313 | 1 097 | 3 591 | 5 001 | 567 261 | 22 917 | 7 653 | 597 831
December 2025 |  |  |  |  |  |  |  |

The amount of new originated or purchased loans represents loans in the portfolio as at 31 December 2025 while
the amount of derecognised loans represent loans in the portfolio as at 1 January 2025 and derecognised during
2025.
The Group's expected credit loss allowance and gross value of loans as of 31.12.2025 differ significantly from
the Bank's data only for loans (stage 1 - EUR 9 373 thousand) and provisions (stage 1 - EUR 39 thousand) in the
balance sheet of the Bank's subsidiary.
BluOr Bank AS
Group’s Consolidated and Bank’s Separate Annual Report for the year ended 31 December 202 5
Notes to the Group’s Consolidated and the Bank’s Separate Financial Statements
56

Group and Bank, EUR’000 |  |  | Credit loss allowance |  |  |  | Gross carrying amount of loans |
Individuals | Stage 1 | Stage 2 | Stage 3 | Total | Stage 1 | Stage 2 | Stage 3 | Total
Opening balance at 1 January 2025 | 86 | 3 | 215 | 304 | 11 532 | 1 742 | 607 | 13 881
Transfers due to change in credit risk: |  |  |  |  |  |  |  |
-to lifetime (from Stage 1 and Stage 3 | (1) | 1 | - | - | (3) | 3 | - | -
to Stage 2) |  |  |  |  |  |  |  |
-to credit-impaired (from Stage 1 and Stage 2 to Stage 3) | (1) | (2) | 3 | - | (4) | (37) | 41 | -
- from Stage 2 to Stage 1 |  |  |  |  |  |  |  |
-remaining credit risk changes | - | - | - | - | - | - | - | -
New originated or purchased | 87 | - | - | 87 | 16 530 | - | - | 16 530
Derecognised | (82) | - | (51) | (133) | (5 556) | (886) | (106) | (6 548)
Change for the year | 3 | (1) | (48) | (46) | 10 967 | (920) | (65) | 9 982
FX and other movements | - | - | - | - | - | - | - | -
Closing balance at 31 December | 89 | 2 | 167 | 258 | 22 499 | 822 | 542 | 23 863
2025 |  |  |  |  |  |  |  |

The amount of new originated or purchased loans represents loans in the portfolio as at 31 December 2025 while
the amount of derecognised loans represent loans in the portfolio as at 1 January 2025 and derecognised during
2025.
BluOr Bank AS
Group’s Consolidated and Bank’s Separate Annual Report for the year ended 31 December 202 5
Notes to the Group’s Consolidated and the Bank’s Separate Financial Statements
57
Movements in the loan impairment allowance for the year ended 31 December 2024 are as follows:

Bank, EUR’000 |  | Credit loss allowance |  |  |  |  | Gross carrying amount of loans |
Corporates and financial | Stage 1 | Stage 2 | Stage 3 | Total | Stage 1 | Stage 2 | Stage 3 | Total
institutions |  |  |  |  |  |  |  |
Opening balance at 1 | 746 | 166 | 2 564 | 3 476 | 373 572 | 18 559 | 8 995 | 401 126
January 2024 |  |  |  |  |  |  |  |
Transfers due to change in credit risk: |  |  |  |  |  |  |  |
-to lifetime (from Stage 1 | (307) | 307 | - | - | (2 778) | 2 778 | - | -
and Stage 3 to Stage 2) |  |  |  |  |  |  |  |
-to credit-impaired (from Stage 1 and Stage 2 to Stage | (124) | - | 124 | - | (968) | - | 968 | -
3) |  |  |  |  |  |  |  |
to Stage 1 from Stage 2 | 32 | (32) | - | - | 7 456 | (7 456) | - | -
-remaining credit risk | 60 | (428) | 1 716 | 1 348 | (660) | - | (671) | (1 331)
changes |  |  |  |  |  |  |  |
New originated or purchased | 65 | - | - | 65 | 190 351 | - | - | 190 351
Derecognised | (56) | (3) | (772) | (831) | (105 978) | (2 559) | (1 198) | (109 735)
Change for the year | (330) | (156) | 1 068 | 582 | 87 423 | (7 237) | (901) | 79 285
FX and other movements | - | - | - | - | - | - | - | -
Closing balance at 31 | 416 | 10 | 3 632 | 4 058 | 460 995 | 11 322 | 8 094 | 480 411
December 2024 |  |  |  |  |  |  |  |

The amount of new originated or purchased loans represents loans in the portfolio as at 31 December 2024 while
the amount of derecognised loans represent loans in the portfolio as at 1 January 2024 and derecognised during
2024.
The Group's expected credit loss allowance and gross value of loans as of 31.12.2024 differ significantly from
the Bank's data only for loans (stage 1 - EUR 10,315 thousand, stage 3 - EUR 9,365 thousand) and provisions
(stage 1 - EUR 43 thousand, stage 3 - EUR 910 thousand) in the balance sheet of the Bank's subsidiary (differences
between the Group's and the Bank's data as of 31.12.2023 none).
BluOr Bank AS
Group’s Consolidated and Bank’s Separate Annual Report for the year ended 31 December 202 5
Notes to the Group’s Consolidated and the Bank’s Separate Financial Statements
58

Group and Bank, EUR’000 |  |  | Credit loss allowance |  |  |  | Gross carrying amount of loans |
Individuals | Stage 1 | Stage 2 | Stage 3 | Total | Stage 1 | Stage 2 | Stage 3 | Total
Opening balance at 1 January 2024 | 33 | 3 | 157 | 193 | 11 851 | 2 581 | 198 | 14 630
Transfers due to change in credit risk: |  |  |  |  |  |  |  |
-to lifetime (from Stage 1 and Stage 3 | (1) | 1 | - | - | (43) | 43 | - | -
to Stage 2) |  |  |  |  |  |  |  |
-to credit-impaired (from Stage 1 and Stage 2 to Stage 3) | (1) | (1) | 2 | - | (52) | (458) | 510 | -
- from Stage 2 to Stage 1 | 20 | (20) | - | - | 220 | (220) | - | -
-remaining credit risk changes | (17) | 21 | 81 | 85 | (948) | - | - | (948)
New originated or purchased | 67 | - | - | 67 | 3 846 | - | - | 3 846
Derecognised | (15) | (1) | (25) | (41) | (3 342) | (204) | (101) | (3 647)
Change for the year | 53 | - | 58 | 111 | (319) | (839) | 409 | (749)
FX and other movements | - | - | - | - | - | - | - | -
Closing balance at 31 December | 86 | 3 | 215 | 304 | 11 532 | 1 742 | 607 | 13 881
2024 |  |  |  |  |  |  |  |

The amount of new originated or purchased loans represents loans in the portfolio as at 31 December 2024 while
the amount of derecognised loans represent loans in the portfolio as at 1 January 2024 and derecognised during
2024.
BluOr Bank AS
Group’s Consolidated and Bank’s Separate Annual Report for the year ended 31 December 202 5
Notes to the Group’s Consolidated and the Bank’s Separate Financial Statements
59
(g) Analysis of loans by type of collateral (Bank)

EUR’000 | 31 December | % of loan | 31 December | % of loan
| 2025 | portfolio | 2024 | portfolio
Commercial buildings | 176 916 | 29 | 197 234 | 40
Real estate – first mortgage | 134 892 | 22 | 88 152 | 18
Commercial assets pledge | 140 774 | 23 | 69 124 | 14
Commercial assets: ships/vessels | 100 980 | 16 | 87 120 | 18
Trading securities | 2 124 | - | 3 178 | 1
Deposit | 2 612 | 1 | 2 962 | -
Inventories | 33 849 | 5 | 27 482 | 6
Other, no collateral | 24 288 | 4 | 14 678 | 3
Net loans and receivables | 616 435 | 100 | 489 930 | 100

EUR’000 | 2025 |  |  | 2024
| Carrying value | Value of | Carrying value | Value of
| of the assets | collateral | of the assets | collateral
Stage 1 | 589 358 | 1 518 935 | 472 026 | 1 216 944
Stage 2 | 22 640 | 55 187 | 13 051 | 22 806
Stage 3 | 4 437 | 11 358 | 4 853 | 14 312
Total | 616 435 | 1 585 480 | 489 930 | 1 254 062
Analysis of loans by type of collateral (Group) |  |  |  |

EUR’000 | 31 December | % of loan | 31 December | % of loan
| 2025 | portfolio | 2024 | portfolio
Commercial buildings | 176 916 | 28 | 197 234 | 39
Real estate – first mortgage | 134 892 | 22 | 88 152 | 17
Commercial assets pledge | 140 774 | 22 | 69 124 | 14
Commercial assets: ships/vessels | 110 314 | 18 | 105 846 | 20
Trading securities | 2 124 | - | 3 178 | 1
Deposit | 2 612 | 1 | 2 962 | 1
Inventories | 33 849 | 5 | 27 482 | 5
Other, no collateral | 24 288 | 4 | 14 678 | 3
Net loans and receivables | 625 769 | 100 | 508 656 | 100

EUR’000 | 2025 |  |  | 2024
| Carrying value | Value of | Carrying value | Value of
| of the assets | collateral | of the assets | collateral
Stage 1 | 598 692 | 1 535 099 | 482 297 | 1 233 109
Stage 2 | 22 640 | 55 187 | 13 051 | 22 806
Stage 3 | 4 437 | 11 358 | 13 308 | 29 144
Total | 625 769 | 1 601 644 | 508 656 | 1 285 059

BluOr Bank AS
Group’s Consolidated and Bank’s Separate Annual Report for the year ended 31 December 202 5
Notes to the Group’s Consolidated and the Bank’s Separate Financial Statements
60
(h) Restructured loans
As at 31 December 2025 and 2024, the loans restructured by the Group and the Bank possessed the following
signs of restructuring:

| 31.12.2 | 025. | 31.12.2024.
|  | EUR’000 | EUR’000
Grace period/payment moratorium |  | 10 239 | 9 649
Extension of maturity/term |  | 1 294 | 1 081
Other |  | 225 | 756
Total restructured loans |  | 11 758 | 11 486

(i) Significant credit exposures
As at 31 December 2025 the Bank had no borrowers or groups of related borrowers, respectively, whose total
loan balances exceeded 10% of loans and receivables from customers.
As at 31 December 2024 the Bank had no borrowers or groups of related borrowers, respectively, whose total
loan balances exceeded 10% of loans and receivables from customers.
According to regulatory requirements, the Bank is not allowed to have a credit exposure to one customer or group
of related customers of more than 25% of Bank’s equity. As at 31 December 2025 and 2024, the Bank was in
compliance with this requirement.
(j) Analysis of loans by internal risk ratings
Analysis of loans by internal risk ratings

EUR’000 | 31.12.202 | 5. | 31.12.2024. |
| Group | Bank | Group | Bank
Internal risk rating |  |  |  |
10 | 45 061 | 45 061 | 18 588 | 18 588
9 | 32 698 | 32 698 | 13 745 | 3 473
8 | 97 689 | 97 689 | 107 615 | 107 615
7 | 217 329 | 217 329 | 188 355 | 188 355
6 | 111 888 | 111 888 | 116 485 | 116 485
5 | 60 781 | 60 781 | 33 204 | 33 204
4 | 17 702 | 8 368 | 9 340 | 885
3 | 2 915 | 2 915 | 2 673 | 2 673
2 | 1 055 | 1 055 | 1 045 | 1 046
Not rated* | 38 651 | 38 651 | 17 606 | 17 606
Net loans and receivables | 625 769 | 616 435 | 508 656 | 489 930
In order to determine internal rating, an individual assessment of credit risk is performed for each loan by a credit risk analyst in accordance with internally developed “Methodology for assessing the credit risk of borrowers”. In general, the overall rating is based both on creditworthiness assessment on a scale from 1 to 10, where 1 is the lowest rating and 10 is the highest rating, i.e. 1 is the highest risk and 10 is the lowest risk. For example, ratings from 1 to 4 represent loans with weak – relatively weak creditworthiness, ratings from 5 to 7 – |  |  |  |

BluOr Bank AS
Group’s Consolidated and Bank’s Separate Annual Report for the year ended 31 December 202 5
Notes to the Group’s Consolidated and the Bank’s Separate Financial Statements
61
relatively weak and rather good, and from 8-10 – rather good and good creditworthiness. The internal rating is
assigned during the credit granting process and is reviewed quarterly as part of monitoring. According to the
historical PD data, applied PD ranges from 0.07% to 9.80%.
*Includes financial institutions balances with the following external ratings:

EUR’000 | 31.12.202 | 5. | 31.12.2024. |
| Group | Bank | Group | Bank
External credit risk rating |  |  |  |
Rated from AAA to A- | 2 178 | 2 178 | - | -
Rated from BBB+ to BBB- | 3 547 | 3 547 | 3 682 | 3 682
Rated from BB+ to BB- | - | - | - | -
Rated below BB- - - | - | - | - | -
Not rated | 5 936 | 5 936 | 7 575 | 7 575
Net loans and receivables | 11 661 | 11 661 | 11 257 | 11 257
(k) Industry analysis of the loan portfolio |  |  |  |

EUR’000 | 31.12.202 | 5. | 31.12.2024. |
| Group | Bank | Group | Bank
Shipping | 104 549 | 95 215 | 105 846 | 87 120
Financial services | 15 807 | 15 807 | 14 033 | 14 033
Wholesale | 74 120 | 74 120 | 66 839 | 66 839
Real Estate | 184 751 | 184 751 | 154 626 | 154 626
Working capital loans | 48 014 | 48 014 | 29 922 | 29 922
Transport and storage | 15 338 | 15 338 | 5 615 | 5 615
Private customers – mortgage loans | 22 357 | 22 357 | 5 523 | 5 523
and consumer loans |  |  |  |
Manufacture of food products | 22 200 | 22 200 | 17 800 | 17 800
Processing factory | 17 535 | 17 535 | 13 309 | 13 309
Forestry | 7 825 | 7 825 | - | -
Other services | 113 273 | 113 273 | 95 143 | 95 143
Net loans and receivables | 625 769 | 616 435 | 508 656 | 489 930

BluOr Bank AS
Group’s Consolidated and Bank’s Separate Annual Report for the year ended 31 December 202 5
Notes to the Group’s Consolidated and the Bank’s Separate Financial Statements
62
18. INVESTMENT SECURITIES AT AMORTISED COST
Financial assets measured at amortised cost

| 31.12.2025 |  | 31.12.2024 |
| Group | Bank | Group | Bank
| EUR’00 | EUR’00 | EUR’000 | EUR’000
| 0 | 0 |  |
Fixed income securities |  |  |  |
Fixed income securities issued by the government of LR | - | - | 1 028 | 1 028
Fixed income securities issued by companies and credit institutions of LR | 2 226 | 2 226 | 1 725 | 1 725
Fixed income securities issued by the government of OECD countries | 26 038 | 26 038 | 31 142 | 31 142
Fixed income securities issued by companies and credit institutions of OECD countries | 13 566 | 13 566 | 21 891 | 21 891
Fixed income securities issued by companies and credit institutions of other countries | 3 094 | 3 094 | 2 093 | 2 093
Expected credit loss allowance | (2 552) | (2 552) | (3 253) | (3 253)
Total fixed income securities | 42 372 | 42 372 | 54 626 | 54 626

Financial assets measured at amortised cost 2025

Group and Bank, EUR’000 | Stage 1 | Stage 2 | Stage 3 | Total
Gross | 42 516 | - | 2 408 | 44 924
(Less) expected credit loss | (144) | - | (2 408) | (2 552)
allowance |  |  |  |
Net | 42 372 | - | - | 42 372

Financial assets measured at amortised cost 2024

Group and Bank, EUR’000 | Stage 1 | Stage 2 | Stage 3 | Total
Gross | 54 003 | 816 | 3 060 | 57 879
(Less) expected credit loss | (158) | (35) | (3 060) | (3 253)
allowance |  |  |  |
Net | 53 845 | 781 | - | 54 626

BluOr Bank AS
Group’s Consolidated and Bank’s Separate Annual Report for the year ended 31 December 202 5
Notes to the Group’s Consolidated and the Bank’s Separate Financial Statements
63
Movements in expected credit loss allowances, 2025
Group and Bank, EUR’000

| Stage 1 | Stage 2 | Stage 3 | Total
Opening ECL balance at 1 January 2025 | 158 | 35 | 3 060 | 3 253
Transfers due to change in credit risk: |  |  |  |
-from Stage 1 to Stage 2 | - | - | - | -
-remaining credit risk changes | - | - | - | -
-from Stage 2 to Stage 3 | - | - | - | -
New originated or purchased | - | - | - | -
Derecognised | - | - | - | -
Change for the year | (14) | (35) | (652) | (701)
FX and other movements |  |  |  |
Closing ECL balance at 31 December | 144 | - | 2 408 | 2 552
2025 |  |  |  |

Movements in expected credit loss allowances, 2024
Group and Bank, EUR’000

| Stage 1 | Stage 2 | Stage 3 | Total
Opening ECL balance at 1 January 2024 | 204 | 278 | 1 875 | 2 357
Transfers due to change in credit risk: |  |  |  |
-from Stage 1 to Stage 2 |  |  |  |
-remaining credit risk changes | (46) | - | 1 185 | 1 139
-from Stage 2 to Stage 3 |  |  |  |
New originated or purchased |  |  |  |
Derecognised | - | (243) | - | (243)
Change for the year |  |  |  |
FX and other movements | - | - | - | -
Closing ECL balance at 31 December | 158 | 35 | 3 060 | 3 25 3
2024 |  |  |  |

BluOr Bank AS
Group’s Consolidated and Bank’s Separate Annual Report for the year ended 31 December 202 5
Notes to the Group’s Consolidated and the Bank’s Separate Financial Statements
64
Quality analysis of investment securities at amortised cost, based on rating agency ratings, is as follows:

| 2025 | 2024
Debt securities and other fixed income securities | EUR'000 | EUR’000
Central governments |  |
Rated from AAA to A- | 23 987 | 26 073
Rated from BBB+ to BBB- | 2 051 | 6 097
Total central governments | 26 038 | 32 170
Credit institutions |  |
Rated from BBB+ to BB- | 1 422 | 3 599
Total credit institutions | 1 422 | 3 599
Corporates |  |
Rated from AAA to A- | 5 964 | 5 577
Rated from BBB+ to BBB- | 2 016 | 487
Rated from BB+ to BB- | 3 002 | 8 898
Below BB- | 1 179 | 1 863
No rating* | 5 303 | 5 285
Total corporate bonds | 17 464 | 22 110
Expected credit loss allowance | (2 552) | (3 253)
Debt securities and other fixed income securities | 42 372 | 54 626

*Not-rated exposures includes securities with no rating assigned as well as securities with rating withdrawn.
In order to calculate ECL for not rated securities, PD which corresponds to B- rating is applied, while
securities with rating withdrawn are assessed individually.
19. INVESTMENTS IN SUBSIDIARIES AND ASSOCIATES
(a) Investments in subsidiaries (Bank)

Company | Ownership share | Carrying amount at | Carrying amount at
|  | 31.12.2025 | 31.12.2024
|  | EUR’000 | EUR’000
SIA BluOr International | 100% | 16 609 | 25 709
Impairment allowance |  | (3 649) | (3 649)
SIA Zapdvina Development | 100% | 10 124 | 10 124
Impairment allowance |  | (964) | (964)
UAB Kamaly Development | 100% | 20 | 20
AS Pils Pakalpojumi | 100% | 15 281 | 15 281
Impairment allowance |  | (548) | (548)
Non-reciprocal capital contribution by a parent into subsidiary |  | (2 400) | (2 400)
SIA Jēkaba 2 | 100% | 4 049 | 4 049
Impairment allowance |  | (106) | (106)

BluOr Bank AS
Group’s Consolidated and Bank’s Separate Annual Report for the year ended 31 December 202 5
Notes to the Group’s Consolidated and the Bank’s Separate Financial Statements
65

SIA Pulkarne Entity | 100% | - | 199
|  | 38 416 | 47 715
Investments in subsidiaries (Bank) |  |  |

| 31.12.202 | 5. | 31.12.2024.
|  | EUR’000 | EUR’000
Investments in subsidiaries |  | 46 083 | 55 382
Non-reciprocal capital contribution by a parent into subsidiary according to IFRS 10 (AS „Pils pakalpojumi”) |  | (2 400) | (2 400)
Impairment allowance |  | (5 267) | (5 267)
Investments in subsidiaries net |  | 38 416 | 47 715

The share capital of SIA Zapdvina Development consisted of 8 848 018 shares with nominal value of EUR 1
amounting to EUR 8 848 018. In 2024, the Bank decreased the share capital of its subsidiary SIA Zapdvina
Development by 1 100 000 shares with nominal value of EUR 1 for a total of EUR 1 100 000. In previous years
the Bank recognised an impairment allowance for its investment in SIA Zapdvina Development in the amount of
EUR 806 thousand triggered by impairment of this subsidiary’s assets. In 2024, based on the appraisal, no
additional impairment allowances were recognised. SIA Zapdvina Development owns a land plot in Daugavpils.
In 2024, the bank's subsidiaries SIA "Mazirbe Estate", SIA "Lielie Zaķi" and SIA "CityCap Service" were merged
to SIA "ZapDvina Development".
The share capital of SIA BluOr International consisted of 16 586 658 shares with nominal value of EUR 1
amounting to EUR 16 586 658. In 2025, the Bank decreased the share capital of its subsidiary SIA BluOr
International by 9 100 000 shares with nominal value of EUR 1 for a total of EUR 9 100 000 . In 2024, the
Bank increased the share capital of its subsidiary SIA BluOr International by 20 000 000 shares with nominal
value of EUR 1 for a total of EUR 20 000 000.
In previous years, the Bank recognised an impairment allowance for its investment in SIA BluOr International
in the amount of EUR 3 649 thousand EUR triggered by impairment of this investment in subsidiaries.
SIA BluOr International has three subsidiaries (Kamaly Development EOOD, Foxtran Management Ltd. and
Hazee Shipping Corp) and an associate AS „Termo biznesa Centrs”). In the previous years, an impairment
allowance for the investment in Foxtran Management Ltd. was recognised by SIA BluOr International in the
amount of EUR 1 959 thousand. Allowances were recognised since the investment in SIA BluOr International
exceeded net assets of Foxtran Management Ltd. In the previous years, SIA BluOr International recognised
impairment allowances for the investment in KamalyDevelopment EOOD in the amount of EUR 364 thousand.
In previous years, the Bank recognised an impairment allowance for its investment in SIA Jēkaba 2 in the amount
of EUR 106 thousand.
In previous years, the Bank recognised an impairment allowance for its investment in AS Pils Pakalpojumi in
the amount of EUR 2 948 thousand.
SIA Pulkarne Entity was liquidated and excluded from the commercial register in 2025.
The share capital of the bank's subsidiary UAB Kamaly Development consists of 20,909 shares with a nominal
value of EUR 1 for a total amount of 20,909. In 2024, the Bank increased the share capital of the subsidiary UAB
"Kamaly Development" by 18,013 shares with a nominal value of EUR 1 for a total amount of EUR 18,013.
BluOr Bank AS
Group’s Consolidated and Bank’s Separate Annual Report for the year ended 31 December 202 5
Notes to the Group’s Consolidated and the Bank’s Separate Financial Statements
(b) Equity-accounted investments in associates (Group)

| Capital | Carrying amount at | Carrying amount at
Company | contribution | 31.12.2025 | 31.12.2024
|  | EUR’000 | EUR’000
|  | Group | Group
AS Termo biznesa Centrs | 26.15% | 1 848 | 1 848
Impairment allowance |  | (1 021) | (1 021)
Total |  | 827 | 827

SIA BluOr International has an associate AS Termo biznesa Centrs. Along with 26,15% of share ownership, the
Group also has the right to collect rental income from part of the premises owned by the associate. Rental income
is recognised in the Group’s profit and loss statement. Rental income amounted to EUR 60 thousand in 2025
(EUR 62 thousand in 2024).
Financial information of the associate AS Termo biznesa centrs:
Group’s

|  |  |  |  |  |  |  |  |  | Net profit |  | Group’s
|  |  |  |  |  |  |  |  |  |  | share in net | share in
| Current | Long-term | Total | Current | Non-current |  | Total |  |  | (loss) | assets | profit
| assets | investments | assets | liabilities | liabilities | liabilities Net assets | Income | Expenses | EUR’000 | 26.15% | 26.15%
| EUR'000 | EUR’000 | EUR’000 | EUR'000 | EUR’000 | EUR’000 EUR'000 | EUR’000 | EUR’000 |  | EUR’000 | EUR’000
| 31 December 2025 |  |  |  |  |  |  |  |  |  |  |
AS Termo | 103 | 311 | 414 | (28) | - | 386 | (28) | 265 | (258) | 7 | 100 | 2
biznesa Centrs | 31 December 2024 |  |  |  |  |  |  |  |  |  |  |
AS Termo | 94 | 314 | 408 | (29) | - | 379 | (29) | 274 | (257) | 17 | 93 | 4

biznesa Centrs
As result for 2025 is insignificant they have no impact on the Group results .
20. INVESTMENT PROPERTY
Investment property of the Group and the Bank represents the following:
2025

|  |  |  | 2024
| Group | Bank | Group | Bank
| EUR’000 | EUR’000 | EUR’000 | EUR’000
Real estate in Latvia | 2 349 | 414 | 2 362 | 414
Real estate in Lithuania | 2 807 | 2 807 | 2 807 | 2 807
Real estate in Bulgaria | 356 | - | 421 | -
Impairment allowance | (2 740) | (1 607) | (2 740) | (1 607)
| 2 772 | 1 614 | 2 850 | 1 614

Investment property is recognized at cost. Investment property consists of land, commercial properties and
apartments.
Direct operating expenses (including repairs and maintenance costs) incurred by the Group in connection with
the investment property which has not earned a rental income during the reporting year amounted to EUR 5
thousand (2024: EUR 4 thousand).
Rental income on investment property during the reporting year (the Group and the Bank) amounted to EUR 10
thousand (2024: EUR 8 thousand).
66
BluOr Bank AS
Group’s Consolidated and Bank’s Separate Annual Report for the year ended 31 December 202 5
Notes to the Group’s Consolidated and the Bank’s Separate Financial Statements
67
The following table shows the valuation technique used in measuring the fair value of property, as well as the
significant unobservable inputs used.
Group’s investment properties

| Carrying | Valuation |  | Significant unobservable inputs |  |
Type | amount, EUR | method |  | 2025 | 2024 | Fair value, EUR ‘000
| ‘000 |  |  |  |  |
Buildings and land plot, | 93 | Comparison | Sales price* |  |  | 108
Kungu iela, Liepāja, | (2024: 93) | approach | varies from | 20-25,0 | 20-25,0 | (2024: 113)
Latvia |  |  | EUR to EUR per |  |  |
|  |  | m2 |  |  |
Buildings and a land plot, | 95 | Comparison | Sales price* |  |  | 175
Jurģu iela, Jūrmala, | (2024: 95) | approach | varies from | 92-112 | 92-112 | (2024: 175)
Latvia |  |  | EUR to EUR per |  |  |
|  |  | m2 |  |  |
Land plot, Klaipeda, | 1 200 | Comparison | Sales price* | 0.37-0.57 for | 0.37-0.57 for | 1 203
Lithuania | (2024: 1 200) | approach | varies from | land plot over | land plot over | (2024: 1 203)
|  |  | EUR to EUR per | 8.2 ha | 8.2 ha |
|  |  | m2 for each land |  |  |
|  |  | plot separately | 5 -5.8 for land | 5 -5.8 for land |
|  |  | based on footage | plot 1 ha | plot 1 ha |
|  |  |  | 2.42 – 6.41 for | 2.42 – 6.41 for |
|  |  |  | land plots till | land plots till |
|  |  |  | 300 m2 | 300 m2 |
Apartments, Bulgaria | 160 | Comparison | Sales price* |  |  | 161
| (2024: 226) | approach | varies from | 1 124-1 400 | 1 124-1 337 | (2024: 227)
|  |  | EUR to EUR per |  |  |
|  |  | m2 |  |  |
Land plot, Mūku purvs, | 387 | Comparison | Sales price* |  |  | 389
Latvia | (2024: 387) | approach | varies from | 80-130 | 82-129 | (2024: 433)
|  |  | EUR to EUR per |  |  |
|  |  | m2 |  |  |
Land plot, Akācijas iela, | 443 | Comparison | Sales price* |  |  | 487
Daugavpils, Latvia | (2024: 443) | approach | varies from | 12-23 | 12-23 | (2024: 443)
|  |  | EUR to EUR per |  |  |
|  |  | m2 |  |  |
Land plot in Ķekavas | - | Comparison | Sales price* |  |  | -
pagasts, Ķekavas novads, | (2024: 12 | approach | varies from | - | 5,5-8,0 | (2024: 13
Latvia |  |  | EUR to EUR per |  |  |
|  |  | m2 |  |  |
Zemes gabals, Dzirciema |  | Comparison | Sales price* |  |  |
iela, Rīga, Latvija |  | approach | varies from |  |  |
| 226 |  | EUR to EUR per |  |  | 226
| (2024: 226) |  | m2 | 9,0-18,0 | 9,0-18,0 | (2024: 226)
Land plot in Kolkas |  | Comparison | Sales price* |  |  |
pagasts, Dundaga |  | approach | varies from |  |  |
novads, Latvia | 86 |  | EUR to EUR per |  |  | 86
| (2024: 86) |  | m2 | 4,4-5,0 | 4,4-5,0 | (2024: 128)
Land plot in Lejas |  | Comparison | Sales price* |  |  |
akmeņi, Ķekavas novads, |  | approach | varies from |  |  |
Latvia | 82 |  | EUR to EUR per |  |  | 82
| (2024: 82) |  | m2 | 0,6-2,7 | 0,6-2,7 | (2024: 82
Total | 2 772 |  |  |  |  |

BluOr Bank AS
Group’s Consolidated and Bank’s Separate Annual Report for the year ended 31 December 202 5
Notes to the Group’s Consolidated and the Bank’s Separate Financial Statements
68
Bank’s investment properties

| Carrying | Valuation |  |  | Significant unobservable inputs |  |
Type | amount, EUR | method |  | 2025 | 2024 |  | Fair value, EUR ‘000
| ‘000 |  |  |  |  |  |
Buildings and land | 93 | Comparison | Sales price* | 20-25,0 | 20-25,0 |  | 108
plot, Kungu iela, | (2024: 93) | approach | varies from |  |  |  | (2024: 113)
Liepāja, Latvia |  |  | EUR to EUR |  |  |  |
|  |  | per m2 |  |  |  |
|  | Comparison | Sales price* |  |  |  |
Zemes gabals, |  | approach | varies from |  |  |  |
Dzirciema iela, Rīga, | 226 |  | EUR to EUR |  |  |  | 226
Latvija | (2024: 226) |  | per m2 | 9,0-18,0 | 9,0-18,0 | (2024: | 226)
Buildings and land | 95 | Comparison | Sales price* |  |  |  | 175
plot, Jurģu iela, | (2024: 95) | approach | varies from |  |  |  | (2024:175)
Jūrmala, Latvia |  |  | EUR to EUR | 92-112 | 92-112 |  |
|  |  | per m2 |  |  |  |
Land plot, Klaipeda, | 1 200 | Comparison | Sales price* |  | 0.37-0.57 for | 0.37-0.57 for land | 1 203
Lithuania | (2024: 1 200) | approach | varies from |  | land plot over | plot over 8.2 ha | (2024: 1 203)
|  |  | EUR to EUR |  | 8.2 ha |  |
|  |  | per m2 for each |  |  | 5 -5.8 for land |
|  |  | land plot |  | 5 -5.8 for | plot 1 ha |
|  |  | separately based |  | land plot 1 ha |  |
|  |  | on footage |  |  | 2.42 – 6.41 for |
|  |  |  |  | 2.42 – 6.41 | land plots till 300 |
|  |  |  |  | for land plots | m2 |
|  |  |  |  | till 300 m2 |  |
Total | 1 614 |  |  |  |  |  |

* sales prices are market prices for similar properties adjusted for certain criteria such as land plot footage
adjustment, location area adjustment, property condition, offer price adjustment, resulting in the significant
unobservable inputs.
BluOr Bank AS
Group’s Consolidated and Bank’s Separate Annual Report for the year ended 31 December 202 5
Notes to the Group’s Consolidated and the Bank’s Separate Financial Statements
69
21. PROPERTY, EQUIPMENT AND RIGHT-OF-USE ASSETS
Property and equipment
The two buildings that the Bank rents from its subsidiaries at Smilšu street and Jēkaba street are used as the Head
office of the Bank. From the Group’s perspective, these buildings are considered to be corporate assets and are
classified as property and equipment. In 2025 and 2024, the management believes that there are no indications
that these sites may be impaired.

|  | Land and |  | Leasehold |  |  |  | Office |  |
|  | buildings | improvements |  | Vehicles |  | equipment |  | Total
|  | EUR’000 | EUR’000 |  | EUR’000 |  | EUR'000 | EUR’000
| Group | Bank | Group | Bank | Group | Bank | Group | Bank | Group | Bank
Cost |  |  |  |  |  |  |  |  |  |
31 December |  |  |  |  |  |  |  |  |  |
2023 | 29 321 | - | - | 4 603 | 1 510 | 67 | 2 606 | 1 963 | 33 437 | 6 633
Additions | - | - | - | - | - | - | 83 | 83 | 83 | 83
Disposals | - | - | - | - | - | - | (26) | (26) | (26) | (26)
31 December |  |  |  |  |  |  |  |  |  |
2024 | 29 321 | - | - | 4 603 | 1 510 | 67 | 2 663 | 2 020 | 33 494 | 6 690
Additions |  | - | - | - | - | - | 41 | 41 | 41 | 41
Disposals |  | - | - | - | - | - | - | - | - | -
31 December |  |  |  |  |  |  |  |  |  |
2025 | 29 321 | - | - | 4 603 | 1 510 | 67 | 2 704 | 2 061 | 33 535 | 6 731
Depreciation |  |  |  |  |  |  |  |  |  |
31 December |  |  |  |  |  |  |  |  |  |
2023 | 6 547 | - | - | 1 547 | 923 | 67 | 2 418 | 1 787 | 9 888 | 3 401
Depreciation | 943 | - | - | 230 | 144 | - | 75 | 74 | 1 162 | 304
Disposals | - | - | - | - | - | - | (26) | (26) | (26) | (26)
31 December |  |  |  |  |  |  |  |  |  |
2024 | 7 490 | - | 1 777 | 1 067 | 67 | 2 467 | 1 835 | 11 024 | 3 679
Depreciation | 943 | - |  | 230 | 144 | - | 76 | 74 | 1 163 | 304
Disposals | - | - | - | - | - | - | - | - | - | -
31 December |  |  |  |  |  |  |  |  |  |
2025 | 8 433 | - |  | 2 007 | 1 211 | 67 | 2 543 | 1 909 | 12 187 | 3 983
Net carrying |  |  |  |  |  |  |  |  |  |
amount |  |  |  |  |  |  |  |  |  |
31 December |  |  |  |  |  |  |  |  |  |
2024 | 21 831 | - | - | 2 826 | 443 | - | 196 | 185 | 22 470 | 3 011
31 December |  |  |  |  |  |  |  |  |  |
2025 | 20 888 | - |  | 2 596 | 299 | - | 161 | 152 | 21 348 | 2 748

BluOr Bank AS
Group’s Consolidated and Bank’s Separate Annual Report for the year ended 31 December 202 5
Notes to the Group’s Consolidated and the Bank’s Separate Financial Statements
70
Right-of-use assets

Bank | Right-of-use assets
| EUR’000
Cost |
31 December 2023 | 12 576
31 December 2024 | 12 576
31 December 2025 | 12 576
Depreciation |
31 December 2023 | 3 315
Depreciation | 663
31 December 2024 | 3 978
Depreciation | 664
31 December 2025 | 4 642
Net carrying amount |
31 December 2024 | 8 598
31 December 2025 | 7 934
Lease liability |
31 December 2023 | 9 912
Lease payments | (582)
Interest accrued | 297
Interest paid | (297)
31 December 2024 | 9 330
Lease payments | (600)
Interest accrued | 280
Interest paid | (280)
31 December 2025 | 8 730

The Bank leases a number of premises under operating lease. The leases typically run for 20 years, with an option
to renew the lease after that date. All property leases are intragroup agreements.
BluOr Bank AS
Group’s Consolidated and Bank’s Separate Annual Report for the year ended 31 December 202 5
Notes to the Group’s Consolidated and the Bank’s Separate Financial Statements
71
22. INTANGIBLE ASSETS
Group

| Software
| EUR'000
Acquisition cost |
31 December 2023 | 2 941
Acquired in the reporting period | 74
Disposed in the reporting period | (30)
31 December 2024 | 2 985
Acquired in the reporting period | 123
Disposed in the reporting period | -
31 December 2025 | 3 108
Amortization |
31 December 2023 | 2 674
Amortization for the reporting period | 139
Amortization of assets disposed in the reporting period | (31)
31 December 2024 | 2 782
Amortization for the reporting period | 74
Amortization of assets disposed in the reporting period | -
31 December 2025 | 2 856
Net carrying amount |
31 December 2024 | 203
31 December 2025 | 252
Bank | Software
| EUR'000
Acquisition cost |
31 December 2023 | 2 922
Acquired in the reporting period | 64
Disposed in the reporting period | (30)
31 December 2024 | 2 956
Acquired in the reporting period | 123
Disposed in the reporting period | -
31 December 2025 | 3 079
Amortization |
31 December 2023 | 2 655
Amortization for the reporting period | 139
Amortization of assets disposed in the reporting period | (31)
31 December 2024 | 2 763
Amortization for the reporting period | 74
Amortization of assets disposed in the reporting period | -
31 December 2025 | 2 837
Net carrying amount |
31 December 2024 | 193
31 December 2025 | 242

BluOr Bank AS
Group’s Consolidated and Bank’s Separate Annual Report for the year ended 31 December 202 5
Notes to the Group’s Consolidated and the Bank’s Separate Financial Statements
72
23. PREPAYMENTS AND ACCRUED INCOME

|  | 2025 |  | 2024
| Group | Bank | Group | Bank
| EUR’000 | EUR’000 | EUR’000 | EUR’000
Next period expense – Resident | 189 | 181 | 81 | 74
Next period expense – Non Resident | 232 | 232 | 180 | 180
Accrued income | 161 | 161 | 274 | 274
Insurance premium | 32 | 32 | 31 | 31
Prepayments and accrued income total | 614 | 606 | 566 | 559

24. OTHER ASSETS

|  | 2025 |  | 2024
| Group | Bank | Group | Bank
| EUR’000 | EUR’000 | EUR’000 | EUR’000
Guarantee deposits for credit card operations | 3 898 | 3 898 | 5 798 | 5 798
Credit card claims and other payment services | 3 206 | 3 206 | 3 187 | 3 187
Prepayments and receivables | 3 646 | 3 622 | 1 899 | 1 877
Total other assets | 10 750 | 10 726 | 10 884 | 10 862
Allowances for other assets | (6) | (6) | (8) | (8)
Other assets, net | 10 744 | 10 720 | 10 876 | 10 854

In 2025 security deposits of EUR 3 898 thousand (2024: 5 798 EUR thousand) were reserved for potential
transactions connected with MasterCard Europe and VISA Card systems.
25. DUE TO MONETARY FINANCIAL INSTITUTIONS ON DEMAND

|  | 2025 |  | 2024
| Group | Bank | Group | Bank
| EUR’000 | EUR’000 | EUR’000 | EUR’000
Monetary financial institutions registered in Latvia | 3 985 | 3 985 | 3 457 | 3 457
Total due to monetary financial institutions on demand | 3 985 | 3 985 | 3 457 | 3 457

BluOr Bank AS
Group’s Consolidated and Bank’s Separate Annual Report for the year ended 31 December 202 5
Notes to the Group’s Consolidated and the Bank’s Separate Financial Statements
73
26. FINANCIAL LIABILITIES CARRIED AT AMORTIZED COST: DEPOSITS

| 2025 |  |  | 2024
| Group | Bank | Group | Bank
| EUR’000 | EUR’000 | EUR’000 | EUR’000
Current accounts: |  |  |  |
Financial institutions | 224 221 | 224 221 | 197 523 | 197 523
Corporate entities | 216 522 | 221 271 | 275 862 | 278 777
Individuals | 72 816 | 72 816 | 71 703 | 71 703
| 513 559 | 518 308 | 545 088 | 548 003
Term deposits: |  |  |  |
Subordinate liabilities | 5 726 | 5 726 | 5 711 | 5 711
Other financial institutions | 93 228 | 93 228 | 99 577 | 99 577
Corporate entities | 23 744 | 23 744 | 15 178 | 15 178
Individuals | 335 295 | 335 295 | 226 694 | 226 694
| 457 993 | 457 993 | 347 160 | 347 160
Total deposits | 971 552 | 976 301 | 892 248 | 895 163
Geographical segmentation of the deposits |  |  |  |

|  | 2025 |  | 2024
| Group | Bank | Group | Bank
| EUR’000 | EUR’000 | EUR’000 | EUR’000
Deposits of residents registered in Latvia | 282 893 | 285 928 | 270 302 | 271 931
Deposits of residents registered in OECD | 622 214 | 622 214 | 583 899 | 583 899
countries |  |  |  |
Deposits of residents registered in other countries (non-OECD) | 66 445 | 68 159 | 38 047 | 39 333
Total deposits | 971 552 | 976 301 | 892 248 | 895 163
As at 31 December 2025, the Bank maintained customer deposit balances of EUR 1 734 thousand which were reserved by the Bank as collateral for loans and other credit instruments granted by the Bank (as at 31 December 2024: EUR 986 thousand). As at 31 December 2025 the Bank had 1 customer group with deposits exceeding 10% of the total customer deposits – EUR 170 922 thousand (as at 31 December 2024 – EUR 218 280 thousand). |  |  |  |

BluOr Bank AS
Group’s Consolidated and Bank’s Separate Annual Report for the year ended 31 December 202 5
Notes to the Group’s Consolidated and the Bank’s Separate Financial Statements
74
27. FINANCIAL LIABILITIES CARRIED AT AMORTIZED COST: SUBORDINATED DEBT
SECURITIES
Subordinated bonds have a fixed term at their origination. Subordinated bonds are repayable before maturity only
on winding up or bankruptcy of the Bank. Subordinated bonds rank before shareholders’ claims.
By issuing subordinated bonds in 2024 (listed on Nasdaq Riga), Bank raised more than EUR 20 million in
financial resources.
Issued subordinated bonds

|  | 2025 |  | 2024
| Group | Bank | Group | Bank
| EUR’000 | EUR’000 | EUR’000 | EUR’000
Issued subordinated bonds | 24 855 | 24 855 | 24 855 | 24 855
Accrued interest payments | 516 | 516 | 516 | 516
Total | 25 371 | 25 371 | 25 371 | 25 371

|  |  |  |  |  | Discount/ | Group/ | Group/
ISIN | Currency | Issue | Nominal | Date of | Date of | coupon | Bank | Bank
|  | size | value | issue | maturity | rate, % | 31/12/2025 | 31/12/20
|  |  |  |  |  |  |  | 24
Subordinated bonds |  |  |  |  |  |  |  |
LV0000802569 | EUR | 4 855 | 1 000 | 01.06.2022 | 01.06.2029 | 7% | 4 855 | 4 855
LV0000804060 | EUR | 20 000 | 1 000 | 02.10.2024 | 02.10.2034 | 10% | 20 000 | 20 000
Issued debt securities, total (‘000 EUR) |  |  |  |  |  |  | 24 855 | 24 855

Additional Tier 1 perpetual debt securities (not listed)

|  | 2025 |  | 2024
| Group | Bank | Group | Bank
| EUR’000 | EUR’000 | EUR’000 | EUR’000
Additional Tier 1 debt securities | 9 759 | 9 759 | 8 709 | 8 709
Accrued interest payments | 105 | 105 | 104 | 104
Total | 9 864 | 9 864 | 8 813 | 8 813

ISIN | Currency | Issue | Nomina | Date of | Date of | Discount/ | Group/ Bank | Group/ Bank
|  | size | l value | issue | maturity | coupon rate, % | 31/12/2025 | 31/12/2024
Additional Tier 1 debt securities |  |  |  |  |  |  |  |
LV0000802437 |  |  |  | 19.10.202 |  |  |  |
| EUR | 11 | 100 000 | 0 | - | 10% | 1 100 | 1 100
LV0000802775 |  |  |  | 08.12.202 |  |  |  |
| EUR | 4 960 | 1 000 | 3 | - | 13% | 4 960 | 4 960
LV0000803195 |  |  |  | 31.05.202 |  |  |  |
| EUR | 300 | 1 000 | 4 | - | 12% | 300 | 300
LV0000803062 | EUR | 2 349 | 1 000 | 08.05.2024 | - | 11% | 2 349 | 2 349
LV0000104594 | EUR | 1 050 | 1 000 | 26.06.2025 | - | 10% | 1 050 | -
Additional Tier 1 debt securities, total (‘000 EUR) |  |  |  |  |  |  |  | 8 709
|  |  |  |  |  |  | 9 759 |

BluOr Bank AS
Group’s Consolidated and Bank’s Separate Annual Report for the year ended 31 December 202 5
Notes to the Group’s Consolidated and the Bank’s Separate Financial Statements
75
28. OTHER LIABILITIES

|  | 2025 |  | 2024
| Group | Bank | Group | Bank
| EUR’000 | EUR’000 | EUR’000 | EUR’000
Other financial liabilities |  |  |  |
Credit card payments | 2 339 | 2 339 | 1 948 | 1 948
Money in transit | 682 | 682 | 1 082 | 1 082
Other liabilities, balances of closed customers’ accounts | 2 830 | 2 830 | 1 583 | 1 583
Other financial liabilities total | 5 851 | 5 851 | 4 613 | 4 613
Other non-financial liabilities |  |  |  |
Operating and other liabilities | 397 | 340 | 823 | 764
Tax settlements | 359 | 359 | 174 | 174
Total other liabilities | 6 607 | 6 550 | 5 610 | 5 551
29. SHARE CAPITAL AND RESERVES As of 31 December 2025, the authorized share capital comprised 31 797 742 registered shares : - 31 781 081 A category ordinary shares (nominal value of one share is EUR 1.40); - 16 661 B category shares (notional share capital by issuing staff shares as a result of staff option conversion, nominal value of one share is EUR 5.16). The holders of A category ordinary shares are entitled to receive dividends as declared and are entitled to one vote per share at the shareholders’ meetings. All shares rank equally with regard to the Bank’s residual assets |  |  |  |

|  | 2025 |  | 2024
Share capital | Quantity | EUR’000 | Quantity | EUR’000
Ordinary shares with voting | 31 781 081 | 44 493 |  |
rights |  |  | 31 781 081 | 44 493
Notional share capital | 16 661 | - | - | -
| 31 797 742 | 44 493 | 31 781 081 | 44 493

The statutory reserve of EUR 24 thousand is not subject to any restrictions and can be distributed to the
shareholders following an appropriate decision.
Dividends
Dividends payable are restricted to the maximum retained earnings of the Bank, which are determined according
to the legislation of Latvia. In accordance with the legislation of the Republic of Latvia, the amount of reserves
available for distribution at the reporting date is EUR 61 864 thousand (2024: EUR 52 793 thousand).
During 2025, 9 million EUR dividends were distributed, 0.28 EUR per share.
During 2024, 9 million EUR dividends were distributed, 0.28 EUR per share.
BluOr Bank AS
Group’s Consolidated and Bank’s Separate Annual Report for the year ended 31 December 202 5
Notes to the Group’s Consolidated and the Bank’s Separate Financial Statements
76
30. CASH AND CASH EQUIVALENTS

|  | 2025 |  | 2024
| Group | Bank | Group | Bank
| EUR’000 | EUR’000 | EUR’000 | EUR’000
Cash and balances due from central banks | 398 384 | 398 384 | 409 545 | 409 545
Due from credit institutions on demand and within 3 | 12 296 | 12 292 | 7 730 | 7 622
months |  |  |  |
Total cash and cash equivalents | 410 680 | 410 676 | 417 275 | 417 167

31. CONTINGENT LIABILITIES AND COMMITMENTS
At any time the Bank has outstanding commitments to extend credit. These commitments take the form of
approved loans and credit card limits and overdraft facilities.
The Bank provides financial guarantees and letters of credit to guarantee the performance of customers to third
parties. These agreements have fixed limits and generally extend for a period of up to five years.
The contractual amounts of commitments are set out in the following table by category. The amounts reflected in
the table for commitments assume that amounts are fully advanced. The amounts reflected in the table for
guarantees and letters of credit represent the maximum accounting loss that would be recognized at the reporting
date if counterparties failed to completely perform as contracted.

|  | 2025 |  | 2024
| Group | Bank | Group | Bank
| EUR’000 | EUR’000 | EUR’000 | EUR’000
Unused loan facilities | 169 106 | 169 106 | 115 190 | 115 190
Unused credit card facilities | 610 | 610 | 729 | 729
Guarantees and other | 11 873 | 11 873 | 5 474 | 5 474
| 181 589 | 181 589 | 121 393 | 121 393
Provisions | (243) | (243) | (121) | (121)

The total contractual amounts of the above loan commitments may differ from the cash flow that may actually be
required in future as these commitments may expire before they are claimed.

Group EUR’000, | Stage 1 | Stage 2 | Stage 3 | Total
2025 |  |  |  |
Contingent liabilities and commitments, Gross | 180 686 | 813 | 90 | 181 589
Impairment allowance | (173) | (65) | (5) | (243)
Net | 180 513 | 748 | 85 | 181 346

Bank EUR’000, | Stage 1 | Stage 2 | Stage 3 | Total
2025 |  |  |  |
Contingent liabilities and commitments, Gross | 180 686 | 813 | 90 | 181 589
Impairment allowance | (173) | (65) | (5) | (243 )

BluOr Bank AS
Group’s Consolidated and Bank’s Separate Annual Report for the year ended 31 December 202 5
Notes to the Group’s Consolidated and the Bank’s Separate Financial Statements
77
Net
180 513
748
85
181 346

Group EUR’000, | Stage 1 | Stage 2 | Stage 3 | Total
2024 |  |  |  |
Contingent liabilities and commitments, Gross | 121 140 | 160 | 93 | 121 393
Impairment allowance | (107) | (1) | (13) | (121)
Net | 121 033 | 159 | 80 | 121 272
Bank EUR’000, 2024 | Stage 1 | Stage 2 | Stage 3 | Total
Contingent liabilities and commitments, Gross | 121 140 | 160 | 93 | 121 393
Impairment allowance | (107) | (1) | (13) | (121)
Net | 121 033 | 159 | 80 | 121 272

Movements in the impairment allowance of contingent liabilities and commitments
Movements in the loan impairment allowance for the year ended 31 December 2025 are as follows:

Group EUR’000 | Stage 1 | Stage 2 | Stage 3 | Total
Opening balance at 1 January 2025 | 107 | 1 | 13 | 121
Transfers due to change in credit risk: |  |  |  |
-from Stage 1 to Stage 2 | - | - | - | -
-from Stage 2 to Stage 1 | - | - | - | -
-from Stage 2 to Stage 3 | - | - | - | -
-remaining credit risk changes | - | 64 | - | 64
New originated or purchased | 66 | - | - | 66
Derecognised | - | - | (8) | (8)
Change for the year |  |  |  |
Closing balance at 31 December 2025 | 173 | 65 | 5 | 243

Bank EUR’000 |  |  |  |
Opening balance at 1 January 2025 | 107 | 1 | 13 | 121
Transfers due to change in credit risk: |  |  |  |
-from Stage 1 to Stage 2 | - | - | - | -
-from Stage 2 to Stage 1 | - | - | - | -
-from Stage 2 to Stage 3 | - | - | - | -
-remaining credit risk changes | - | 64 | - | 64
New originated or purchased | 66 | - | - | 66
Derecognised | - | - | (8) | (8)
Change for the year |  |  |  |
Closing balance at 31 December 2025 | 173 | 65 | 5 | 243

BluOr Bank AS
Group’s Consolidated and Bank’s Separate Annual Report for the year ended 31 December 202 5
Notes to the Group’s Consolidated and the Bank’s Separate Financial Statements
78
Movements in the impairment allowance of contingent liabilities and commitments
Movements in the loan impairment allowance for the year ended 31 December 2024 are as follows:

Group EUR’000 | Stage 1 | Stage 2 | Stage 3 | Total
Opening balance at 1 January 2024 | 106 | 1 | 191 | 298
Transfers due to change in credit risk: |  |  |  |
-from Stage 1 to Stage 2 | - | - | - | -
-from Stage 2 to Stage 1 | - | - | - | -
-from Stage 2 to Stage 3 | - | - | - | -
-remaining credit risk changes | - | - | - | -
New originated or purchased | 1 | - | - | 1
Derecognised | - | - | (178) | (178)
Change for the year | 1 | - | (178) | (177)
Closing balance at 31 December 2024 | 107 | 1 | 13 | 121

Bank EUR’000 | Stage 1 | Stage 2 | Stage 3 | Total
Opening balance at 1 January 2024 | 106 | 1 | 191 | 298
Transfers due to change in credit risk: |  |  |  |
-from Stage 1 to Stage 2 | - | - | - | -
-from Stage 2 to Stage 1 | - | - | - | -
-from Stage 2 to Stage 3 | - | - | - | -
-remaining credit risk changes | - | - | - | -
New originated or purchased | 1 | - | - | 1
Derecognised | - | - | (178) | (178)
Change for the year | 1 | - | (178) | (177)
Closing balance at 31 December 2024 | 107 | 1 | 13 | 121

BluOr Bank AS
Group’s Consolidated and Bank’s Separate Annual Report for the year ended 31 December 202 5
Notes to the Group’s Consolidated and the Bank’s Separate Financial Statements
79
32. LITIGATION
On 15 September 2022, BluOr Bank AS (the “Bank”) received an actio pauliana claim filed before a Lithuanian
district court by UAB Dognus, a company registered in Lithuania, against the Bank, the Bank’s former client
UAB Baltijos šaliu industrinio perdirbimo centras (hereinafter – “BŠIPC”, former name UAB Alfagra), and the
Bank’s client SIA AOC Invest. The claim amount is EUR 6,420,274.76. UAB Dognus alleges that loan
repayments made in 2021 by BŠIPC to the Bank must be returned to BŠIPC on the grounds that, by making such
repayments, BŠIPC allegedly infringed the interests of other creditors.
The Bank had financed BŠIPC under credit line agreements within the framework of trade finance transactions.
Loans were granted for the purchase of agricultural commodities, while the Bank maintained strict and
comprehensive control over the financed goods. The goods were released from the Bank’s control only upon
repayment of the loan amount corresponding to the financed quantity. All goods owned by BŠIPC, both in
warehouses and in transit, were pledged in favour of the Bank (commercial pledges were duly registered), and
financial collateral in favour of the Bank was also agreed. The loan repayments challenged by UAB Dognus were
made in accordance with the credit line agreements and were linked to the release of pledged goods for sale. On
3 December 2025, the Vilnius Regional Court upheld the claim of UAB Dognus against the Bank and SIA AOC
Invest. This is a first instance judgment. On 2 January 2026, the Bank filed an appeal, which has been admitted;
on 9 January 2026, the appeal was forwarded to the parties for submission of written explanations. The hearing
date before the appellate court has not yet been set.
Despite the unfavourable first instance judgment, the Bank has not recognised a provision for potential losses in
relation to this litigation. The Bank, including through engagement of independent and reputable experts in
Lithuania and Latvia, has assessed possible legal and financial scenarios and concluded that, even if the appellate
court were to uphold the first instance judgment, the Bank would not incur a material loss. In such a scenario, the
Bank would be entitled to assert its claim in the BŠIPC in solvency proceedings as a secured creditor and would
have priority in the satisfaction of its claim. Given that the original pledged assets (goods) no longer exist, the
Bank’s claim would be secured, pursuant to a court decision, by the funds repaid by the Bank itself. In addition,
the first instance judgment contains several legal deficiencies, which, in the Bank’s assessment, reduce the
likelihood of it being fully upheld on appeal.
In parallel with the above litigation, insolvency proceedings against BŠIPC are ongoing in Lithuania. The decision
of the Vilnius Regional Court declaring BŠIPC insolvent and appointing an administrator entered into force on
18 May 2022. In these insolvency proceedings, the Bank has been granted the status of an interested party. By
decision dated 12 January 2026, the Vilnius District Court recognised that BŠIPC had been deliberately brought
to insolvency and that two founders and board members are responsible. This decision has been appealed and has
not yet entered into force. During the insolvency proceedings, several expert examinations were conducted, which
revealed that BŠIPC had manipulated accounting data and the recording of transactions, particularl y transactions
with related parties, thereby concealing its true financial position.
In light of the most recent information regarding such accounting manipulations and misrepresentation of
financial data, the Bank is currently assessing the possibility of further strengthening its legal position, including
by filing a claim against BŠIPC to secure potential damages arising from BŠIPC’s actions, including the provision
of inaccurate financial information to the Bank. Damages in the legal sense in this case would also include the
Bank’s expenses related to court proceedings in which the Bank became involved due to the actions of BŠIPC,
as well as lost profit in the event that the Bank is required to return to the insolvent BŠIPC the loan repayments
received from it and to await their recovery as a secured creditor within the insolvency proceedings.
BluOr Bank AS
Group’s Consolidated and Bank’s Separate Annual Report for the year ended 31 December 202 5
Notes to the Group’s Consolidated and the Bank’s Separate Financial Statements
80
.
33. ASSETS AND LIABILITIES UNDER MANAGEMENT

|  | 2025 |  | 2024
| Group | Bank | Group | Bank
Assets under management | EUR'000 | EUR’000 | EUR’000 | EUR’000
Due from credit institutions registered in Latvia | 4 428 | 4 428 | 1 414 | 1 414
Loans to customers | 165 | 165 | 165 | 165
Non fixed income securities | 126 844 | 126 844 | 59 116 | 59 116
Fixed income securities | 335 | 335 | 1 416 | 1 416
Other assets | 22 | 22 | 105 | 105
Total assets under management | 131 794 | 131 794 | 62 216 | 62 216
Liabilities under management |  |  |  |
Non-resident trust liabilities | 32 517 | 32 517 | 22 614 | 22 614
Resident trust liabilities | 99 277 | 99 277 | 39 602 | 39 602
Total liabilities under management | 131 794 | 131 794 | 62 216 | 62 216

The largest share of assets under management were invested in non-fixed income securities. Assets under
management include loans granted on a trust basis (trust loans) made on behalf of a third party (the beneficiary).
34. RELATED PARTY TRANSACTIONS
Related parties are defined as shareholders who have a significant influence over the Bank (parent company),
members of the Council and the Board and Other related parties, that are companies in which parent company
and members of the Council and the Board have a controlling interest, key management personnel, their close
relatives and companies in which they have a controlling interest, as well as associated and related companies.
All transactions with related parties have been carried out at an arm’s length.
Loans, deposits and other claims and liabilities to related parties include the following:

|  | 2025 |  | 2024
| Group | Bank | Group | Bank
| EUR’000 | EUR’000 | EUR’000 | EUR’000
Loans to related parties | 400 | 400 | 309 | 309
incl. members of the Council and the Board | 140 | 140 | 129 | 129
incl. relatives of members of the Council and the Board | 256 | 256 | 173 | 173
incl. companies related to members of the Council and the Board | 4 | 4 | 7 | 7
Impairment allowance | (23) | (23) | (27) | (27)
Net loans to related parties | 377 | 377 | 282 | 282
Right-of-use assets – lease contracts (subsidiaries) | - | 7 934 | - | 8 598
Total loans and other claims | 377 | 8 311 | 282 | 8 880

BluOr Bank AS
Group’s Consolidated and Bank’s Separate Annual Report for the year ended 31 December 202 5
Notes to the Group’s Consolidated and the Bank’s Separate Financial Statements
81

Term and demand deposits and loans | 180 956 | 185 705 | 229 897 | 232 813
incl. from the parent company | 5 343 | 5 343 | 1 683 | 1 683
incl. from subsidiaries | - | 4 749 | - | 2 916
incl. from the members of the Council and Board | 1 820 | 1 820 | 2 684 | 2 684
incl. relatives of members of the Council and the Board | 1 776 | 1 776 | 4 702 | 4 702
incl. companies related to members of the Council and the Board | 172 017 | 172 017 | 220 828 | 220 828
Bonds issued (incl. from the members of the Council and companies related to members of the Council) | 2 852 | 2 852 | 2 852 | 2 852
Lease liability (subsidiaries) | - | 8 730 | - | 9 330
Total deposits and liabilities | 183 808 | 197 287 | 232 749 | 244 995

2025

|  |  | 2024 |
| Group | Bank | Group | Bank
| Interest rate % | Interest rate % | Interest rate % | Interest rate %
Loans to related parties | 2.42 | 2.42 | 3.73 | 3.73
Term and demand deposits | 1.97 | 1.97 | 3.26 | 3.26
Remuneration to the member of Council and Board during 2025 amounted to EUR 1 498 thousand (2024: EUR 1 368 thousand) (see Note 11). |  |  |  |

|  | 2025 |  | 2024
| Group | Bank | Group | Bank
Income from related party transactions | EUR'000 | EUR’000 | EUR’000 | EUR’000
Commission income (the members of the Council and companies related to members of the Council) | 326 | 326 | 424 | 424
Interest income (the members of the Council and Board) | 14 | 14 | 79 | 79
Expenses from related party transactions |  |  |  |
Interest expense (the members of the Council and companies | 4 522 | 4 862 | 6 980 | 7 330
related to members of the Council) |  |  |  |
Amortisation - right-of-use assets – lease contracts | - | 663 | - | 663
(subsidiaries) |  |  |  |
Public utilities and maintenance (subsidiaries) | - | 438 | - | 390

BluOr Bank AS
Group’s Consolidated and Bank’s Separate Annual Report for the year ended 31 December 202 5
Notes to the Group’s Consolidated and the Bank’s Separate Financial Statements
82
35. MATURITY ANALYSIS OF ASSETS AND LIABILITIES (BANK)
The table below reflects the maturity analysis of financial assets and liabilities based on the contractual term from
the reporting date until the maturity dates of the respective assets and liabilities. The remaining period to maturity
of assets and liabilities as at 31 December 2025 was as follows:

2025 |  |  |  |  |  | 5 years | Total
|  |  | From 3 | From 6 | From 1 | and |
| Up to 1 month | From 1 to 3 | to | months | to 5 | over, or |
EUR’000 | including | months | 6 months | to 1 year | years | no | EUR’000
|  |  |  |  |  | maturit |
|  |  |  |  |  | y |
Financial assets |  |  |  |  |  |  |
Cash and demand deposits with central | 398 384 | - | - | - | - | - | 398 384
banks |  |  |  |  |  |  |
Deposits with credit institutions | 12 292 | - | - | - | - | - | 12 292
Loans and receivables | 65 500 | 16 727 | 33 298 | 77 585 | 422 005 | 1 320 | 616 435
Investment securities | 46 450 | 1 402 | 334 | 727 | 4 347 | - | 53 260
Other financial assets | 6 821 |  |  |  |  | 3 899 | 10 720
Total financial assets | 529 447 | 18 129 | 33 632 | 78 312 | 426 352 | 5 219 | 1 091 091
Financial liabilities |  |  |  |  |  |  |
Due to monetary financial institutions | 3 985 | - | - | - | - | - | 3 985
on demand |  |  |  |  |  |  |
Financial liabilities carried at amortized | 609 384 | 145 810 | 47 222 | 164 911 | 34 345 | 9 864 | 1 011 536
cost |  |  |  |  |  |  |
Lease liabilities | 73 | 146 | 146 | 513 | 4 323 | 3 529 | 8 730
Other financial liabilities | - | - | - | - | - | 5 851 | 5 851
Total financial liabilities | 613 442 | 145 956 | 47 368 | 165 424 | 38 668 | 19 244 | 1 030 102
Maturity gap | (83 995) | (127 827) | (13 736) | (87 112) | 387 684 | (14 025) | 60 989
Cumulative maturity gap | (83 995) | (211 822) | (225 558) | (312 670) | 75 014 | 60 989 |

The maturity analysis of the Group is different from the Bank disclosed above only due to lease liabilities EUR
(8 730 thousand - Bank) and loans in the balance sheet of the Bank's subsidiary (EUR 9 334 thousand).
The negative gap positions are managed in accordance with the Bank’s Liquidity risk management policy. There
are limits for maturity gap positions, which are set and monitored by the Bank’s Investment committee .
BluOr Bank AS
Group’s Consolidated and Bank’s Separate Annual Report for the year ended 31 December 202 5
Notes to the Group’s Consolidated and the Bank’s Separate Financial Statements
83
The table below reflects the maturity analysis of financial assets and liabilities based on the contractual term from
the reporting date until the maturity dates of the respective assets and liabilities. The remaining period to maturity
of assets and liabilities as at 31 December 2024 was as follows:

2024 |  |  |  |  |  | 5 years | Total
|  |  | From 3 | From 6 | From 1 | and |
| Up to 1 month | From 1 to 3 | to | months | to 5 | over, or |
EUR’000 | including | months | 6 month | to 1 year | years | no | EUR’000
|  |  | s |  |  | maturit |
|  |  |  |  |  | y |
Financial assets |  |  |  |  |  |  |
Cash and demand deposits with central | 409 545 | - | - | - | - | - | 409 545
banks |  |  |  |  |  |  |
Deposits with credit institutions | 7 622 | - | - | - | - | - | 7 622
Loans and receivables | 54 802 | 25 183 | 16 331 | 56 624 | 336 234 | 756 | 489 930
Investment securities | 57 488 | 1 220 | 5 | 3 448 | 7 345 | - | 69 506
Other financial assets | 5 056 | - | - | - | - | 5 798 | 10 854
Total financial assets | 534 513 | 26 403 | 16 336 | 60 072 | 343 579 | 6 554 | 987 457
Financial liabilities |  |  |  |  |  |  |
Due to monetary financial institutions | 3 457 | - | - | - | - | - | 3 457
on demand |  |  |  |  |  |  |
Financial liabilities carried at amortized | 579 940 | 160 677 | 52 928 | 85 213 | 41 776 | 8 813 | 929 347
cost |  |  |  |  |  |  |
Lease liabilities | 73 | 146 | 146 | 440 | 4 323 | 4 202 | 9 330
Other financial liabilities | - | - | - | - | - | 4 613 | 4 613
Total financial liabilities | 583 470 | 160 823 | 53 074 | 85 653 | 46 099 | 17 628 | 946 747
Maturity gap | (48 957) | (134 420) | (36 738) | (25 581) | 297 480 | (11 074) | 40 710
Cumulative maturity gap | (48 957) | (183 377) | (220 115) | (245 696) | 51 784 | 40 710 |

The maturity analysis of the Group is different from the Bank disclosed above only due to lease liabilities EUR
(9 330 thousand - Bank) and loans in the balance sheet of the Bank's subsidiary (EUR 18 727 thousand).
The negative gap positions are managed in accordance with the Bank’s Liquidity risk management policy. There
are limits for maturity gap positions, which are set and monitored by the Bank’s Investment committee.
.
BluOr Bank AS
Group’s Consolidated and Bank’s Separate Annual Report for the year ended 31 December 202 5
Notes to the Group’s Consolidated and the Bank’s Separate Financial Statements
84
36. FINANCIAL RISK MANAGEMENT
Liquidity risk (Bank)
Residual contractual maturities of financial liabilities of the Bank are presented below. The amounts disclosed in
the tables are the contractual undiscounted cash flows in comparison with the carrying amounts of financial
liabilities The Group’s residual contractual maturities of financial liabilities have not been presented as the
difference to the Bank’s analysis is insignificant.
EUR’000

|  | Gross nominal |  | 1– 3 | 3 months | 1-5 years
| Carrying | inflow / | Less than | months | to 1 year | and
| amount | (outflow) | 1 month |  |  |
31 December 2025 |  |  |  |  |  | more
Non-derivative liabilities |  |  |  |  |  |
Due to monetary financial institutions on demand | 3 985 | (3 985) | (3 985) | - | - | -
Lease liabilities | 8 730 | (10 520) | (73) | (146) | (657) | (9 644)
Financial liabilities carried at amortized cost: deposits and subordinated deposits | 976 300 | (983 347) | (604 641) | (79 020) | (287 687) | (11 999)
Financial liabilities carried at amortized cost: subordinated debt | 35 236 | (76 939) | (500) | (347) | (2 650) | (73 442)
securities |  |  |  |  |  |
Total non-derivative liabilities | 1 024 251 | (1 074 791) | (609 199) | (79 513) | (290 994) | (95 085)
Unused loan and credit card | 169 716 | (169 716) | (169 716) | - | - | -
commitments |  |  |  |  |  |
Guarantees given | 11 873 | (11 873) | (11 873) | - | - | -
Total Liabilities | 1 205 840 | (1 256 380) | (790 788) | (79 513) | (290 994) | (95 085)

EUR’000

|  | Gross nominal |  | 1– 3 | 3 months | 1-5 years
| Carrying | inflow / | Less than | months | to 1 year | and
| amount | (outflow) | 1 month |  |  |
31 December 2024 |  |  |  |  |  | more
Non-derivative liabilities |  |  |  |  |  |
Due to monetary financial institutions on demand | 3 457 | (3 457) | (3 457 ) | - | - | -
Lease liabilities | 9 330 | (11 400) | (73) | (146) | (657) | (10 524)
Financial liabilities carried at amortized cost: deposits and subordinated deposits | 895 163 | (905 433) | (583 225) | (141 550) | (160 703) | (19 955)
Financial liabilities carried at amortized cost: subordinated debt | 34 184 | (76 128) | (500) | (320) | (2 571) | (72 737)
securities |  |  |  |  |  |
Total non-derivative liabilities | 942 134 | (996 418) | (587 255) | (142 016) | (163 931) | (103 216)
Unused loan and credit card | 115 919 | (115 919) | (115 919) | - | - | -
commitments |  |  |  |  |  |
Guarantees given | 5 474 | (5 474) | (5 474) | - | - | -
Total Liabilities | 1 063 527 | (1 117 811) | (708 648) | (142 016) | (163 931) | (103 216)

BluOr Bank AS
Group’s Consolidated and Bank’s Separate Annual Report for the year ended 31 December 202 5
Notes to the Group’s Consolidated and the Bank’s Separate Financial Statements
85
Residual contractual maturities of financial liabilities of the Group is different from the Bank disclosed above
only due to lease liabilities (Bank).
37. CURRENCY ANALYSIS OF ASSETS AND LIABILITIES (BANK)
The Latvian banking legislation requires that the total foreign currency open position may not exceed 20% of the
equity.
The EUR equivalent of assets and liabilities as at 31 December 2025 by the currencies in which they are
denominated is as follows:

2025 | EUR | USD | Other | Total
EUR'000 |  |  | currencies |
| EUR’000 | EUR’000 | EUR’000 | EUR’000
Financial assets |  |  |  |
Cash and demand deposits with central banks | 398 376 | 8 | - | 398 384
Loans and receivables from banks | 2 061 | 7 066 | 3 165 | 12 292
Loans and receivables | 605 835 | 10 544 | 56 | 616 435
Investment securities | 50 597 | 2 663 | - | 53 260
Other financial assets | 8 324 | 2 387 | 9 | 10 720
Total financial assets | 1 065 193 | 22 668 | 3 230 | 1 091 091
Financial liabilities |  |  |  |
Due to monetary financial institutions on demand | (3 967) | (18) | - | (3 985)
Financial liabilities carried at amortized cost | (998 177) | (10 879) | (2 480) | (1 011 536)
Other financial liabilities | (4 065) | (1 783) | (3) | (5 851)
Total financial liabilities | (1 006 209) | (12 680) | (2 483) | (1 021 372)
Assets (liabilities) arising from currency exchange |  |  |  |
Spot and forward transaction receivables | 21 319 | 10 739 | - | 32 058
Spot and forward transaction liabilities | (10 750) | (21 009) | (328) | (32 087)
Net long/short currency position | 69 553 | (282) | 419 | 69 690

The currency analysis of the Group is significantly different from that of the Bank disclosed above only for loans
in the balance sheet of the Bank's subsidiary (EUR 9 334 thousand), balances in EUR.
The currency gap positions are managed in accordance with the Bank’s Currency risk management policy. There
are limits for currency gap positions.
BluOr Bank AS
Group’s Consolidated and Bank’s Separate Annual Report for the year ended 31 December 202 5
Notes to the Group’s Consolidated and the Bank’s Separate Financial Statements
86
37. CURRENCY ANALYSIS OF ASSETS AND LIABILITIES (BANK) (continued)
The Latvian banking legislation requires that the total foreign currency open position may not exceed 20% of the
equity.
The EUR equivalent of assets and liabilities as at 31 December 2024 by the currencies in which they are
denominated is as follows:

2024 | EUR | USD | Other | Total
EUR'000 |  |  | currencies |
| EUR’000 | EUR’000 | EUR’000 | EUR’000
Financial assets |  |  |  |
Cash and demand deposits with central banks | 409 545 | - | - | 409 545
Loans and receivables from banks | 3 687 | 2 678 | 1 257 | 7 622
Loans and receivables | 479 220 | 10 598 | 112 | 489 930
Investment securities | 63 771 | 5 735 | - | 69 506
Other financial assets | 10 854 | - | - | 10 854
Total financial assets | 967 077 | 19 011 | 1 369 | 987 457
Financial liabilities |  |  |  |
Due to monetary financial institutions on demand | (3 431) | (23) | (3) | (3 457)
Financial liabilities carried at amortized cost | (915 669) | (12 526) | (1 152) | (929 347)
Other financial liabilities | (3 703) | (687) | (223) | (4 613)
Total financial liabilities | (922 803) | (13 236) | (1 378) | (937 417)
Assets (liabilities) arising from currency exchange |  |  |  |
Spot and forward transaction receivables | 18 500 | - | - | 18 500
Spot and forward transaction liabilities | - | (18 546) | - | (18 546)
Net long/short currency position | 62 774 | (12 771) | (9) | 49 994

The currency analysis of the Group is significantly different from that of the Bank disclosed above only for loans
in the balance sheet of the Bank's subsidiary (EUR 18 727 thousand), balances in EUR.
The currency gap positions are managed in accordance with the Bank’s Currency risk management policy. There
are limits for currency gap positions.
BluOr Bank AS
Group’s Consolidated and Bank’s Separate Annual Report for the year ended 31 December 202 5
Notes to the Group’s Consolidated and the Bank’s Separate Financial Statements
87
38. REPRICING MATURITY ANALYSIS (BANK)
Interest rate risk relates to the changes in the value of the financial instrument as a result of changes in the market
rates. As at 31 December 2025, interest rate re-pricing categories were:

2025 | Up to 1 |  | From 3 | From 6 | From 1 | Over | Non- | Total
| month | From 1 to | to | months to | to 5 | 5 | interest |
EUR'000 | including | 3 months | 6 mont hs | 1 year | years | years | bearing | EUR’000
Financial assets |  |  |  |  |  |  |  |
Cash and demand deposits with central banks | 398 384 | - | - | - | - | - | - | 398 384
Loans and receivables from banks | 12 292 | - | - | - | - | - | - | 12 292
Investment securities | 10 214 | 2 462 | 6 544 | 17 276 | 14 431 | 2 333 | - | 53 260
Loans and receivables | 15 057 | 12 261 | 568 300 | 8 459 | 12 358 | - | - | 616 435
Other financial assets | - | - | - | - | - | - | 10 720 | 10 720
Total financial assets | 435 947 | 14 723 | 574 844 | 25 735 | 26 789 | 2 333 | 10 720 | 1 091 091
FINANCIAL LIABILITIES |  |  |  |  |  |  |  |
Due to monetary financial institutions on demand | 3 985 | - | - | - | - | - |  | 3 985
Financial liabilities carried at amortized cost | 609 720 | 73 259 | 47 663 | 235 191 | 4 741 |  |  | 970 574
Other financial liabilities |  |  |  |  |  |  | 5 851 | 5 851
Total financial Liabilities | 613 705 | 73 259 | 47 663 | 235 191 | 4 741 | - | 5 851 | 980 410
Interest rate risk net position | (177 758) | (58 536) | 527 181 | (209 456) | 22 048 | 2 333 | 4 869 | 110 681

The reprising maturity analysis of the Group is significantly different from that of the Bank disclosed above only
for loans in the balance sheet of the Bank's subsidiary (EUR 9 334 thousand).
BluOr Bank AS
Group’s Consolidated and Bank’s Separate Annual Report for the year ended 31 December 202 5
Notes to the Group’s Consolidated and the Bank’s Separate Financial Statements
88
38. REPRICING MATURITY ANALYSIS (BANK) (continued)
Interest rate risk relates to the changes in the value of the financial instrument as a result of changes in the market
rates. As at 31 December 2024, interest rate re-pricing categories were:

2024 | Up to 1 |  | From 3 | From 6 | From 1 |  | Non- | Total
| month | From 1 to | to | months | to 5 | Over 5 | interest |
EUR'000 | including | 3 months | 6 mont | to 1 | years | years | bearing | EUR’00
|  |  | hs | year |  |  |  | 0
Financial assets |  |  |  |  |  |  |  |
Cash and demand deposits with central banks | 409 154 | - | - | - | - | - | 391 | 409 545
Loans and receivables from banks | 7 622 | - | - | - | - | - | - | 7 622
Investment securities | - | 8 661 | 2 214 | 3 734 | 52 527 | 2 370 | - | 69 506
Loans and receivables | 16 249 | 28 923 | 428 089 | 11 086 | 5 583 | - | - | 489 930
Other financial assets | - | - | - | - | - | - | 10 854 | 10 854
Total financial assets | 433 025 | 37 584 | 430 303 | 14 820 | 58 110 | 2 370 | 11 245 | 987 457
FINANCIAL LIABILITIES |  |  |  |  |  |  |  |
Due to monetary financial institutions on demand | - | - | - | - | - | - | 3 457 | 3 457
Financial liabilities carried at amortized cost | 571 824 | 130 885 | 61 539 | 93 701 | 10 574 | - | 20 929 | 889 452
Other financial liabilities | - | - | - | - | - | - | 4 613 | 4 613
Total financial Liabilities | 571 824 | 130 885 | 61 539 | 93 701 | 10 574 | - | 28 999 | 897 522
Interest rate risk net position | (138 799) | (93 301) | 368 764 | (78 881) | 47 536 | 2 370 | (17 754) | 89 935

The reprising maturity analysis of the Group is significantly different from that of the Bank disclosed above only
for loans in the balance sheet of the Bank's subsidiary (EUR 18 727 thousand).
BluOr Bank AS
Group’s Consolidated and Bank’s Separate Annual Report for the year ended 31 December 202 5
Notes to the Group’s Consolidated and the Bank’s Separate Financial Statements
89
39. MAXIMUM CREDIT EXPOSURE ANALYSIS
The Bank’s maximum exposure to credit risk is set out below. The impact of possible netting of assets and
liabilities to reduce potential credit exposure is not significant.

Maximum credit exposure | Notes |  | Gross maximum credit exposure
|  | Bank | Bank
At 31 December |  | 2025 | 2024
EUR'000 |  |  |
Cash and balances with central banks | 14 | 398 384 | 409 545
Loans and receivables from banks | 15 | 12 292 | 7 622
Investment securities | 16, 18 | 53 260 | 69 506
Loans and receivables | 17 | 616 435 | 489 930
Other financial assets | 24 | 10 720 | 10 854
Total financial assets |  | 1 091 091 | 987 457
Unused loan facilities | 31 | 169 106 | 115 190
Unused credit card facilities | 31 | 610 | 729
Guarantees an others | 31 | 11 873 | 5 474
Total guarantees and commitments |  | 181 589 | 121 393
Total maximum credit risk exposure |  | 1 272 680 | 1 108 850

The Group’s maximum exposure to credit risk is set out below. The impact of possible netting of assets and
liabilities to reduce potential credit exposure is not significant.

Maximum credit exposure | Notes |  | Gross maximum credit exposure
|  | Group | Group
At 31 December |  | 2025 | 2024
EUR'000 |  |  |
Cash and balances with central banks | 14 | 398 384 | 409 545
Loans and receivables from banks | 15 | 12 296 | 7 730
Investment securities | 16, 18 | 53 260 | 69 506
Loans and receivables | 17 | 625 769 | 508 656
Other financial assets | 24 | 10 744 | 10 876
Total financial assets |  | 1 100 4 53 | 1 006 313
Unused loan facilities |  | 169 106 |
| 31 |  | 115 190
Unused credit card facilities |  | 610 |
| 31 |  | 729
Guarantees an others |  | 11 873 |
| 31 |  | 5 474
Total guarantees and commitments |  | 181 589 |
|  |  | 121 393
Total maximum credit risk exposure |  | 1 282 0 42 | 1 127 706

BluOr Bank AS
Group’s Consolidated and Bank’s Separate Annual Report for the year ended 31 December 202 5
Notes to the Group’s Consolidated and the Bank’s Separate Financial Statements
90
The Group’s maximum exposure to credit risk is reflected in the carrying amounts of financial assets in the
consolidated statement of financial position. For financial guarantees issued, commitments to extend credit,
undrawn credit lines and export/import letters of credit, the maximum exposure to credit risk is the amount of the
commitment.
Credit risk management. Credit risk is the single largest risk for the Group's business; management therefore
carefully manages its exposure to credit risk.
The estimation of credit risk for risk management purposes is complex and involves the use of models, as the risk
varies depending on market conditions, expected cash flows and the passage of time. The assessment of credit
risk for a portfolio of assets entails further estimations of the likelihood of defaults occurring, the associated loss
ratios and default correlations between counterparties.
Limits. The Group structures the levels of credit risk it undertakes by placing limits on the amount of risk accepted
in relation to one borrower, or groups of borrowers, and to geographical and industry segments. Limits on the
level of credit risk by product and industry sector are approved regularly by management. Such risks are
monitored on a revolving basis and are subject to an annual, or more frequent, review
Credit risks policies are presented in Note 4.1 .
40.CAPITAL ADEQUACY CALCULATION (BANK)

| 2025 | 2024
| EUR’000 | EUR’000
Equity | 131 140 | 122 423
Total Tier 1 | 103 617 | 93 284
Tier 2 capital | 27 523 | 29 139
Total risk weighted assets | 700 193 | 663 280
Total capital as a percentage of risk weighted assets (total capital ratio) |  |

18.73%
18.46%
Total tier 1 capital expressed as a percentage of risk-weighted
assets (“tier 1 capital ratio”)
14.80%
14.06%
The above is based on internal reports of the Bank, provided to key management of the Bank.
As at 3l December 2025, the Bank's capital adequacy ratio was 18.73% (2024:18.46 %) which corresponds to
the requirements set in the Basel Capital Accord and the regulations of the Latvijas Banka. Under the capital
requirements introduced by Regulation (EU) No 575/2013 of the European Parliament and of the Council and the
Latvijas Banka, banks need to maintain a ratio of capital to risk weighted assets (“statutory capital ratio”) above
the prescribed minimum level. Although the minimum required level as at 31 December 2025 was 8%, according
to a special request by the Latvijas Banka, the Bank was required to ensure a higher capital adequacy of 11.9%
during the period from 1 January 2025 (additional capital requirement - 1.9% and capital reserve requirement -
1%). In addition to the above capital requirement for the overall risk coverage, the Bank is required to maintain
compliance with the total capital reserve requirement calculated in accordance with Section 35
22
, 35
23
, 35
24
or
35
25
of the Credit Institution Law -3.37% (Capital conservation buffer – 2.50%, institution-specific
countercyclical capital buffer – 0.87%). The requirements of the total capital reserve should be met using Tier 1
capital.
In addition to the calculation of the capital adequacy ratio in accordance with ‘Normative regulations on
establishing a capital assessment process’ No. 321 of the Latvijas Banka, the Bank regularly conducts its own
BluOr Bank AS
Group’s Consolidated and Bank’s Separate Annual Report for the year ended 31 December 202 5
Notes to the Group’s Consolidated and the Bank’s Separate Financial Statements
91
internal capital adequacy assessment in order to ensure that it covers all the risks assumed by the Bank and whether
they are covered by the capital.
In accordance with Regulation (EU) of the European Parliament and of the Council 575/2013, the calculation of
capital adequacy is performed at the consolidated level, including the parent company of the bank (AS BBG). All
of the above requirements are also met at the consolidated level. CALCULATION OF CAPITAL ADEQUACY
at the consolidated level can be found on the Bank's website in the section "financial information" in the quarterly
financial report (https://www.bluorbank.com/lv/finansu-informacija).
41. FAIR VALUE OF FINANCIAL INSTRUMENTS
(a) Financial instruments measured at fair value
The table below analyses financial instruments measured at fair value at the end of the reporting period, by the
level in the fair value hierarchy into which the fair value measurement is categorised. There were no transfers
between the fair value hierarchy levels.
The Group and the Bank

| Published price | Valuation techniques based on | Valuation techniques based |
| quotations | market observable inputs | on unobservable inputs |
31 December 2025 | (1) | (2) | (3) | Total
Financial assets |  |  |  |
Financial assets at fair value through profit or loss: |  |  |  |
Non fixed income securities | - | 540 | - | 540
Financial assets at fair value through other comprehensive income |  |  |  |
Fixed income securities | 4 001 | 5 740 | 579 | 10 320
Non fixed income securities and shares | - | 28 | - | 28
| 4 001 | 6 308 | 579 | 10 888

31 December 2024
Published price
quotations
(1)

|  | Valuation techniques based on | Valuation techniques based |
|  | market observable inputs | on unobservable inputs |
|  | (2) | (3) | Total
Financial assets |  |  |  |
Financial assets at fair value through profit or loss: |  |  |  |
Non fixed income securities | - | 543 | - | 543
Financial assets at fair value through other comprehensive income |  |  |  |
Fixed income securities | 9 060 | 4 879 | 375 | 14 314
Non fixed income securities and shares | - | 23 | - | 23
| 9 060 | 5 445 | 375 | 14 880

Included in category "Published price quotations" (Level 1) are financial assets and liabilities that are measured
by reference to published quotes in an active market. A financial instrument is regarded as quoted in an active
market if quoted prices are readily and regularly available from an exchange, dealer, broker, industry group,
pricing service or regulatory agency and those prices represent actual and regularly occurring market transactions
on an arm’s length basis. The main asset classes included in this category are financial assets for which the fair
BluOr Bank AS
Group’s Consolidated and Bank’s Separate Annual Report for the year ended 31 December 202 5
Notes to the Group’s Consolidated and the Bank’s Separate Financial Statements
92
value is obtained via pricing vendors or binding broker quotes and assets for which the fair value is determined
by reference to indices.
Included in category 2 “Valuation methods based on market observable data” are financial assets and liabilities
that are measured using a valuation technique based on assumptions that are supported by prices from observable
current market transactions in the same instrument or based on available market data.
Not based upon market observable (Level 3) input means that fair values are determined in whole or in part using
a valuation technique (model) based on assumptions that are neither supported by prices from observable current
market transactions in the same instrument nor are they based on available market data.
The following table shows the valuation techniques used in measuring Level 2 fair values:

Type | Valuation technique
Financial assets and | Market comparison technique: The fair values are based on broker quotes. Similar contracts
liabilities designated as at | are traded in an active market and the quotes reflect the actual transactions in similar
fair value through profit | instruments.
or loss. |
Financial assets | Valuation is based on financial indicators, including discounted cash flows and value of
measured at fair value through other comprehensive income | Bank’s position with the price hedge

The following table shows the valuation techniques used in measuring Level 3 fair values:
Changes in financial instruments of the Group/Bank classified as Level 3 in Fair Value Hierarchy:

31.12.2025 |  |  |  |
Financial assets at fair |  |  | Fair value |
value | 31.12.2024 | (Sold) | adjustment | 31.12.2025
Fixed income securities | 375 | 204 | - | 579
Non fixed income |  |  |  |
securities | - | - | - | -

|  |  |  |  |  | Inter-relation between
Type |  |  | Valuation method |  | Significant unobservable | significant unobservable
|  |  |  |  | inputs | inputs and fair value
|  |  |  |  |  | measurement
Assets at fair value through profit or | Valuation is | based | on | financial | Net assets | The estimated fair value
loss (illiquid bonds) |  |  |  | indicators, including discounted cash |  | would increase
| flows. |  |  |  |  | (decrease), if:
|  |  |  |  |  | Increase/(decrease) in net
|  |  |  |  |  | assets
Financial assets measured at fair |  |  |  | Valuation is based discounted dividend | Future net revenues; | The estimated fair value
value through other | model |  |  |  | CAPEX | would increase (decrease)
comprehensive income |  |  |  |  |  | if: revenue increases/ (decreases/ CAPEX decreases/ (increases)

BluOr Bank AS
Group’s Consolidated and Bank’s Separate Annual Report for the year ended 31 December 202 5
Notes to the Group’s Consolidated and the Bank’s Separate Financial Statements

Total financial assets at |  |  |  |
fair value | 375 | 204 | - | 579
31.12.2024 |  |  |  |
Financial assets at fair |  |  | Fair value |
value | 31.12.2023 | (Sold) | adjustment | 31.12.2024
Fixed income securities | 379 | - | (4) | 375
Non fixed income securities | - | - | - | -
Total financial assets at fair value | 379 | - | (4) | 375

The table below analyses the fair values of financial instruments other than measured at fair value by the level in
the fair value hierarchy into which each fair value measurement is categorised. There were no transfers between
the fair value hierarchy levels.
Total carrying

31 December 2025 | Level 1: | Level 2: | Level 3: | Total fair value | amount
| EUR’000 | EUR’000 | EUR’000 | EUR’000 | EUR’000
Financial assets |  |  |  |  |
Cash and demand deposits with central bank | 542 | 397 842 | - | 398 384 | 398 384
Loans and receivables from banks |  |  | 12 292 | 12 292 | 12 292
Loans to customers | - | - | 616 472 | 616 472 | 616 435
Investment securities at amortised |  |  |  |  |
cost | 1 554 | 40 372 | 780 | 42 706 | 42 372
Other financial assets | - | - | 10 720 | 10 720 | 10 720
Financial liabilities |  |  |  |  |
Due to monetary financial institutions |  |  |  |  |
on demand | - | - | 3 985 | 3 985 | 3 985
Financial liabilities carried at amortized cost | - | - | 1 012 953 | 1 012 953 | 1 011 536
Other financial liabilities | - | - | 5 851 | 5 851 | 5 851

The fair value of financial instruments of the Group is significantly different from the Bank only for loans in the
balance sheet of the Bank's subsidiary (EUR 9 334 thousand).
93
BluOr Bank AS
Group’s Consolidated and Bank’s Separate Annual Report for the year ended 31 December 202 5
Notes to the Group’s Consolidated and the Bank’s Separate Financial Statements
94

|  |  |  |  | Total carrying
31 December 2024 | Level 1: | Level 2: | Level 3: | Total fair value | amount
| EUR’000 | EUR’000 | EUR’000 | EUR’000 | EUR’000
Financial assets |  |  |  |  |
Cash and demand deposits with central bank | 391 | 409 154 | - | 409 545 | 409 545
Loans and receivables from banks | - | - | 7 622 | 7 622 | 7 622
Loans to customers | - | - | 489 395 | 489 395 | 489 930
Investment securities at amortised |  |  |  |  |
cost |  | 53 891 | 191 | 54 082 | 54 626
Other financial assets | - | - | 10 854 | 10 854 | 10 854
Financial liabilities |  |  |  |  |
Due to monetary financial institutions |  |  |  |  |
on demand | - | - | 3 457 | 3 457 | 3 457
Financial liabilities carried at amortized cost | - | - | 934 763 | 934 763 | 929 347
Other financial liabilities | - | - | 4 613 | 4 613 | 4 613

The fair value of financial instruments of the Group is significantly different from the Bank only for loans in the
balance sheet of the Bank's subsidiary (EUR 18 727 thousand).
The following table shows the valuation techniques use in measuring Level 2 and Level 3 fair values, as well as
the significant unobservable inputs used:

Type | Valuation method | Significant unobservable inputs
Loans and advances due from financial | Discounted cash flows | Discount rates
institutions |  |
Loans | Discounted cash flows | Discount rates
Due to financial institutions | Discounted cash flows | Discount rates
Deposits | Discounted cash flows | Discount rates

BluOr Bank AS
Group’s Consolidated and Bank’s Separate Annual Report for the year ended 31 December 202 5
Notes to the Group’s Consolidated and the Bank’s Separate Financial Statements
95
42. OPERATING SEGMENTS
The Bank’s Management Board, its chief operating decision maker, monitors separately the operating results of
the Corporate banking operating segment. The Bank’s main business activity is servicing corporate customers
and high net worth individuals, there is no separate retail banking segment and insignificant part of retail banking
products are managed and monitored together with corporate banking products. Treasury function includes
treasury services provided to corporate customers and therefore included in the Corporate segment. The results
of all other operations are included in the “Other” segment.
Geographical information as well as significant expsures exceeding 10% or total Loans and Deposits is disclosed
in 15 and Note 26 respectively.

| 2025 |  |  |  | 2024 |
| Corporate | Other | Total | Corpora | Other | Total
|  |  |  | te |  |
| EUR'000 | EUR'000 | EUR'000 | EUR'000 | EUR'000 | EUR'000
Net interest and similar income | 27 235 | - | 27 235 | 29 218 | - | 29 218
Fee and commission income | 18 449 | - | 18 449 | 16 369 | - | 16 369
Fee and commission expense | (2 850) | - | (2 850) | (2 235) | - | (2 235)
Net other finance income | 2 540 | - | 2 540 | 522 | - | 522
Other operating income | 923 | 66 | 989 | 2 511 | 61 | 2 572
Total operating income | 46 297 | 66 | 46 363 | 46 385 | 61 | 46 446
Total operating expense | (22 603) | (64) | (22 667) | (21 477) | (63) | (21 540)
Credit loss allowance | (316) | - | (316) | (2 898) | - | (2 898)
Profit before tax | 23 378 | 2 | 23 380 | 22 010 | (2) | 22 008
| 2025 |  |  |  |  |

|  |  |  |  | 2024 |
| Corporate | Other | Total | Corporat | Other | Total
|  |  |  | e |  |
Fee and commission income | EUR'000 | EUR'000 | EUR'000 | EUR'000 | EUR'000 | EUR'000
Money transfers | 1 417 | - | 1 417 | 1 150 | - | 1 150
Commissions on loans | 1 365 | - | 1 365 | 833 | - | 833
monitoring and service |  |  |  |  |  |
Securities transactions | 1 466 | - | 1 466 | 1 500 | - | 1 500
Assets management | 2 724 | - | 2 724 | 1 538 | - | 1 538
Client service | 8 407 | - | 8 407 | 9 134 | - | 9 134
Payment card service | 3 070 | - | 3 070 | 2 214 | - | 2 214
Total fee and commission | 18 449 | - | 18 449 | 16 369 | - | 16 369
income |  |  |  |  |  |
Total assets | 1 125 439 | 827 | 1 126 266 | 1 032 402 | 827 | 1 033 229
Total liabilities | 1 025 755 | - | 1 025 755 | 942 834 | - | 942 834

BluOr Bank AS
Group’s Consolidated and Bank’s Separate Annual Report for the year ended 31 December 202 5
Notes to the Group’s Consolidated and the Bank’s Separate Financial Statements
96
43. EVENTS AFTER THE REPORTING PERIOD
No significant subsequent events have occurred in the period from the reporting date to the date of these financial
statements that would require adjustments to be made to these financial statements and disclosures added to the
notes thereto.
The financial report was prepared by BluOr Bank AS Member of the Board /Chief accountant Vadims Morozs.
PricewaterhouseCoopers SIA
Marijas iela 2A, Rīga, LV-1050, Latvia, LV40003142793
T: +371 6709 4400, F: +371 6783 0055, www.pwc.lv
www.pwc.
lv
Independent Auditor’s Report
To the Shareholder of BluOr Bank AS
Report on the audit of the consolidated and separate financial
statements
Our opinion
In our opinion, the consolidated and separate financial statements give a true and fair view of the
consolidated and separate financial position of BluOr Bank AS (the “Bank”) and its subsidiaries (together
– the “Group”) as at 31 December 2025, and of the Group’s consolidated and the Bank’s separate
financial performance and Group’s consolidated and the Bank’s separate cash flows for the year then
ended in accordance with IFRS Accounting Standards as adopted by the European Union (EU)
.
Our opinion is consistent with our additional report to the Audit Committee dated 6 March 2026.
What we have audited
The Group’s consolidated and the Bank’s separate financial statements (together “the financial
statements”) comprise:
• the Group’s Consolidated and the Bank’s Separate Income Statements for the year ended 31
December 2025;
• the Group’s Consolidated and the Bank’s Separate Statements of Other Comprehensive Income for
the year ended 31 December 2025;
• the Group’s Consolidated and the Bank’s Separate Statements of Financial Position as at 31
December 2025;
• the Group’s Consolidated Statement of Changes in Shareholders’ Equity for the year ended 31
December 2025;
• the Bank’s Separate Statement of Changes in Shareholders’ Equity for the year ended 31 December
2025;
• the Group’s Consolidated and the Bank’s Separate Statements of Cash Flows for the year ended 31
December 2025; and
• Notes to the Group's Consolidated and Bank’s Separate Financial Statements, comprising material
accounting policy information and other explanatory information.
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing adopted in the Republic
of Latvia (ISAs). Our responsibilities under those standards are further described in the Auditor’s
responsibilities for the audit of the financial statements section of our report.
2 Independent Auditor’s Report
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for
our opinion.
Independence
We are independent of the Group and the Bank in accordance with the ethical requirements of
Regulation (EU) No 537/2014 that are relevant to audits of financial statements of public interest
entities, the ethical requirements of the Law on Audit Services that are relevant to audits of financial
statements in the Republic of Latvia and the International Code of Ethics for Professional Accountants
(including International Independence Standards) issued by the International Ethics Standards Board
for Accountants (IESBA Code) as applicable to audits of financial statements of public interest entities.
We have also fulfilled our other ethical responsibilities in accordance with the ethical requirements of the
Regulation (EU) No 537/2014, the ethical requirements of the Law on Audit Services and the IESBA
Code.
To the best of our knowledge and belief, we declare that non-audit services that we have provided to the
Bank, its parent company and its controlled entities within the European Union are in accordance with
the applicable law and regulations in the Republic of Latvia and that we have not provided non-audit
services that are prohibited under Article 37.
6
of the Law on Audit Services of the Republic of Latvia.
The non-audit services that we have provided to the Bank and its controlled entities in the period from 1
January 2025 to the date of issuing this report are disclosed in note 11 to the financial statements.
Our audit approach
Overview
 Overall Group materiality is EUR 1.1 million, which represents approximately 5% of
profit before tax.
 Overall Bank materiality: EUR 1.05 million, which represents approximately 5% of
profit before tax.
 We have audited the separate financial statements of the Bank.
 We have performed selected audit procedures over the significant balances and
transactions of subsidiaries.
 Our audit scope covered substantially all of the Group’s revenues and substantially all
of the Group’s total assets.
 Expected credit losses on loans (Group and Bank).
As part of designing our audit, we determined materiality and assessed the risks of material
misstatement in the financial statements. In particular, we considered where management made
subjective judgements; for example, in respect of significant accounting estimates that involved making
assumptions and considering future events that are inherently uncertain. As in all of our audits, we also
Materiality
Group
Scoping
Key Audit
Matters
3 Independent Auditor’s Report
addressed the risk of management override of internal controls including, among other matters,
consideration of whether there was evidence of bias that represented a risk of material misstatement due
to fraud.
Materiality
The scope of our audit was influenced by our application of materiality. An audit is designed to obtain
reasonable assurance whether the financial statements are free from material misstatement.
Misstatements may arise due to fraud or error. They are considered material if individually or in
aggregate, they could reasonably be expected to influence the economic decisions of users taken on the
basis of the financial statements.
Based on our professional judgement, we determined certain quantitative thresholds for materiality,
including the overall Group and Bank materiality for the consolidated and separate financial statements
as a whole as set out in the table below. These, together with qualitative considerations, helped us to
determine the scope of our audit and the nature, timing and extent of our audit procedures and to
evaluate the effect of misstatements, if any, both individually and in aggregate on the financial
statements as a whole.
Overall materiality Overall materiality applied to the Group was EUR 1.1 million.
Overall materiality applied to the Bank was EUR 1.05 million.
How we determined it Approximately 5% of the Group’s and the Bank’s profit before tax for 2025.
Rationale for the materiality benchmark
applied
We chose profit before tax as the base benchmark because, in our view, it is
the benchmark against which the performance of the Group and the Bank is
most commonly measured by users, and it is a generally accepted
benchmark.
We chose the threshold of 5%, which is within the range of acceptable
quantitative materiality thresholds for this benchmark for a public-interest
entity.
We agreed with the Audit Committee that we would report to them misstatements identified during our
audit above EUR 50 thousand for the Group and the Bank, as well as misstatements below that amount
that, in our view, warranted reporting for qualitative reasons.
Key audit matters
Key audit matters are those matters that, in our professional judgment, were of most significance in our
audit of the financial statements of the current period. These matters were addressed in the context of
our audit of the financial statements as a whole, and in forming our opinion thereon, and we do not
provide a separate opinion on these matters.
4 Independent Auditor’s Report
Key audit matter How our audit addressed the key audit matter
Expected credit losses on loans (Group
and Bank)
Refer to Note 4 "Risk management" and
Note 17 “Loans and receivables” to the
financial statements
We focused on this area because application
of IFRS 9 “Financial instruments” expected
credit loss (ECL) model for loans
impairment losses requires complex and
subjective judgements over both timing of
recognition of expected credit losses and
their extent.
The key features of the ECL model include
classification of loans to 3 stages, assessment
of credit risk parameters and application of
forward-looking information.
The amount of expected credit losses for the
Group’s and the Bank’s loans is based on
calculations taking into consideration the
exposure at default, probability of default,
changes in customer credit rating and taking
into account estimated future cash flows
from the loan repayments or sale of
collateral (loss given default), and ECL
adjustments by expected impact of future
macroeconomic scenarios.
For individually significant loans ECL are
calculated on an individual basis and expert
judgement is applied to determine
probability of default (PD) and loss given
default (LGD). For other loans the expected
credit losses are calculated using the ECL
model.
As at 31 December 2025 expected credit
losses allowance amounted to EUR 5 298
thousand and EUR 5 259 thousand for the
Group and the Bank respectively (refer to
Note 17.
We assessed whether the Group’s and the Bank’s
accounting policies in relation to the ECL of loans to
customers are in compliance with IFRS 9 by assessing
each significant model component: exposure at default,
probability of default, loss given default, definitions of
default and significant increase in credit risk and use of
macroeconomic scenarios.
We assessed the design and operating effectiveness of
the controls over relevant loan data and ECL
calculations. These controls included controls over
monitoring of loan quality, the non-retail loans credit
file periodic reviews and related credit rating
assessment, timely transfer into overdue accounts
where relevant and accuracy of overdue days
calculation, appropriate classification into individual or
collective assessment, and staging assessment.
Further, we performed detailed testing over the
reliability of loan data, including contract dates,
interest rates, collateral values and types,
performing/non-performing status, overdue days and
other inputs used in the ECL calculation engine as at 31
December 2025.
For a sample of individually significant loans to legal
entities we evaluated the reasonableness of
assumptions made by the Bank’s credit expert
regarding future cash flow scenarios, PD and LGD,
appropriateness of ECL stage applied, existence and
valuation of collateral and the accuracy of the ECL
calculation.
We involved our expert to assess the ECL model and
recalculate the credit loss allowance for loans and
advances assessed on the collective basis. We tested the
accuracy of input information used in the ECL model
and assessed consistency of the model with the prior
year.
Finally, we have assessed the accuracy and
completeness of information included in credit risk
disclosures.
How we tailored our Group audit scope
We tailored the scope of our audit in order to perform sufficient work to enable us to provide an opinion
on the consolidated financial statements as a whole, taking into account the structure of the Group, the
accounting processes and controls, and the industry in which the Group operates.
5 Independent Auditor’s Report
The Group engagement team carried out audit work on the Bank’s financial statements and performed
selected audit procedures over the significant balances and transactions of other subsidiaries. Our audit
work addressed substantially all of the Group’s revenues and the Group’s total assets. A
The audit of the consolidated and separate financial statements was carried out by the Group engagement
team, and the involvement of component auditors was not required.
Reporting on other information including Management Report
Management is responsible for the other information. The other information comprises:
 the Management Report, as set out on pages 3 to 5 of the Annual report,
 information on the Council and the Board of the Bank, as set out on page 6 of the Annual Report;
and,
 Statement of Management’s Responsibility, as set out on page 7 of the Annual Report,
 Statement of Corporate Governance, set out in a separate statement prepared and signed by the
Bank's Management Board on 14 January 2026 and available on the Bank's website
http://bluorbank.lv as at the date of this audit report,
but does not include the financial statements and our auditor’s report thereon.
Our opinion on the financial statements does not cover the other information.
In connection with our audit of the financial statements, our responsibility is to read the other
information identified above and, in doing so, consider whether the other information is materially
inconsistent with the financial statements or our knowledge obtained in the audit, or otherwise appears
to be materially misstated.
With respect to the Management Report, we also performed the procedures required by the Law on Audit
Services of the Republic of Latvia. Those procedures include considering whether the Management
Report includes the disclosures required by the Latvijas Banka's Regulation No 326 "Regulation on the
annual reports and consolidated annual reports of credit institutions, investment brokerage companies,
investment management companies and private pension funds".
In accordance with the Law on Audit Services of the Republic of Latvia with respect to the Statement of
Corporate Governance, our responsibility is to consider whether the Statement of Corporate Governance
includes the information required by section (3) of Article 56.
2
of the Financial Instruments Market Law.
6 Independent Auditor’s Report
Based on the work undertaken in the course of our audit, in our opinion, in all material respects:
 the information given in the other information identified above for the financial year for which
the financial statements are prepared is consistent with the financial statements; and
 the Management Report, has been prepared in accordance with the requirements of the Latvijas
Banka's Regulation No 326 "Regulation on the annual reports and consolidated annual reports of
credit institutions, investment brokerage companies, investment management companies and
private pension funds”; and
 the Statement of Corporate Governance, available on the Bank’s website http://bluorbank.lv/ as
at the date of this audit report, includes the information required by section (3) of Article 56.
2
of
the Financial Instruments Market Law.
In addition, in light of the knowledge and understanding of the Group and the Bank and their operating
environment obtained in the course of the audit, we are required to report if we have identified material
misstatements in the Management report and other information that we obtained prior to the date of this
auditor’s report. We have nothing to report in this regard.
Responsibilities of management and those charged with governance for the
financial statements
Management is responsible for the preparation of the financial statements that give a true and fair view
in accordance with IFRS Accounting Standards as adopted by the EU and for such internal control as
management determines is necessary to enable the preparation of financial statements that are free from
material misstatement, whether due to fraud or error.
In preparing the financial statements, management is responsible for assessing the Group’s and the
Bank’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern
and using the going concern basis of accounting unless management either intends to liquidate the
Group or the Bank or to cease operations, or has no realistic alternative but to do so.
Those charged with governance are responsible for overseeing the Group’s and the Bank’s financial
reporting process.
Auditor’s responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are
free from material misstatement, whether due to fraud or error, and to issue 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 ISAs will always detect a material misstatement when it exists.
Misstatements can arise from fraud or error and are considered material if, individually or in the
7 Independent Auditor’s Report
aggregate, they could reasonably be expected to influence the economic decisions of users taken on the
basis of these financial statements.
As part of an audit in accordance with ISAs, we exercise professional judgment and maintain professional
scepticism throughout the audit. We also:
 Identify and assess the risks of material misstatement of the financial statements, whether due to
fraud or error, design and perform audit procedures responsive to those risks, and obtain audit
evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not
detecting a material misstatement resulting from fraud is higher than for one resulting from
error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the
override of internal control.
 Obtain an understanding of internal control relevant to the audit in order to design audit
procedures that are appropriate in the circumstances, but not for the purpose of expressing an
opinion on the effectiveness of the Group’s and the Bank’s internal control.
 Evaluate the appropriateness of accounting policies used and the reasonableness of accounting
estimates and related disclosures made by management.
 Conclude on the appropriateness of management’s use of the going concern basis of accounting
and, based on the audit evidence obtained, whether a material uncertainty exists related to events
or conditions that may cast significant doubt on the Group’s and the Bank’s ability to continue as
a going concern. If we conclude that a material uncertainty exists, we are required to draw
attention in our auditor’s report to the related disclosures in the financial statements or, if such
disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit
evidence obtained up to the date of our auditor’s report. However, future events or conditions
may cause the Group or the Bank to cease to continue as a going concern.
 Evaluate the overall presentation, structure and content of the financial statements, including the
disclosures, and whether the financial statements represent the underlying transactions and
events in a manner that achieves fair presentation.
 Plan and perform the group audit to obtain sufficient appropriate audit evidence regarding the
financial information of the entities or business units within the Group as a basis for forming an
opinion on the consolidated financial statements. We are responsible for the direction,
supervision and review of the audit work performed for the purpose of the group audit. We
remain solely responsible for our audit opinion.
We communicate with those charged with governance regarding, among other matters, the planned
scope and timing of the audit and significant audit findings, including any significant deficiencies in
internal control that we identify during our audit.
8 Independent Auditor’s Report
We also provide those charged with governance with a statement that we have complied with relevant
ethical requirements regarding independence, and communicate with them all relationships and other
matters that may reasonably be thought to bear on our independence, and where applicable, actions
taken to eliminate threats or safeguards applied.
From the matters communicated with those charged with governance, we determine those matters that
were of most significance in the audit of the financial statements of the current period and are therefore
the key audit matters. We describe these matters in our auditor’s report unless law or regulation
precludes public disclosure about the matter or when, in extremely rare circumstances, we determine
that a matter should not be communicated in our report because the adverse consequences of doing so
would reasonably be expected to outweigh the public interest benefits of such communication.
Report on other legal and regulatory requirements
Report on the compliance of the presentation of consolidated financial statements
with the requirements of the European Single Electronic Format (“ESEF”)
We have been engaged based on our agreement of 6 October 2025 by the Board of the Bank to conduct a
reasonable assurance engagement for the verification of compliance with the applicable requirements of
the presentation of the consolidated financial statements of BluOr Bank AS for the year ended 31
December 2025 (the “Presentation of the Consolidated Financial Statements”).
Description of a subject matter and applicable criteria
The Presentation of the Consolidated Financial Statements has been applied by the Board of the Bank to
comply with the requirements of art. 3 and 4 of the Commission Delegated Regulation (EU) 2019/815 of
17 December 2018 supplementing Directive 2004/109/EC of the European Parliament and of the Council
with regard to regulatory technical standards on the specification of a single electronic reporting format
(the “ESEF Regulation”). The applicable requirements regarding the Presentation of the Consolidated
Financial Statements are contained in the ESEF Regulation.
The requirements described in the preceding sentence determine the basis for application of the
Presentation of the Consolidated Financial Statements and, in our view, constitute appropriate criteria to
form a reasonable assurance conclusion.
Responsibility of the Management Board and those charged with governance
The Management Board of the Bank is responsible for the Presentation of the Consolidated Financial
Statements that complies with the requirements of the ESEF Regulation.
This responsibility includes the selection and application of appropriate markups in XBRL using ESEF
taxonomy and designing, implementing and maintaining internal controls relevant for the preparation of
the Presentation of the Consolidated Financial Statements which is free from material non-compliance
with the requirements of the ESEF Regulation.
9 Independent Auditor’s Report
Those charged with governance are responsible for overseeing the financial reporting process, which
should also be understood as the preparation of consolidated financial statements in accordance with the
format resulting from the ESEF Regulation.
Our responsibility
Our responsibility was to express a reasonable assurance conclusion whether the Presentation of the
Consolidated Financial Statements complies, in all material respects, with the ESEF Regulation.
We conducted our engagement in accordance with the International Standard on Assurance
Engagements 3000 (R) - ‘Assurance Engagements other than Audits and Reviews of Historical Financial
Information’ (ISAE 3000(R)). This standard requires that we comply with ethical requirements, plan and
perform procedures to obtain reasonable assurance whether the Presentation of the Consolidated
Financial Statements complies, in all material aspects, with the applicable requirements.
Reasonable assurance is a high level of assurance, but it does not guarantee that the service performed in
accordance with ISAE 3000 (R) will always detect the existing material misstatement (significant non-
compliance with the requirements).
Quality management requirements and professional ethics
Our firm applies International Standard on Quality Management 1, which requires the firm to design,
implement and operate a system of quality management including policies or procedures regarding
compliance with ethical requirements, professional standards and applicable legal and regulatory
requirements.
We comply with the independence and other ethical requirements of the International Code of Ethics for
Professional Accountants (including International Independence Standards) issued by the International
Ethics Standards Board for Accountants, which is founded on fundamental principles of integrity,
objectivity, professional competence and due care, confidentiality and professional behaviour.
Summary of the work performed
Our planned and performed procedures were aimed at obtaining reasonable assurance that the
Presentation of the Consolidated Financial Statements complies, in all material aspects, with the
applicable requirements and such compliance is free from material errors or omissions. Our procedures
included in particular:
 obtaining an understanding of the internal control system and processes relevant to the
application of the Electronic Reporting Format of the Consolidated Financial Statements,
including the preparation of the XHTML format and marking up the consolidated financial
statements;
 verification whether the XHTML format was applied properly;
10 Independent Auditor’s Report
 evaluating the completeness of marking up the consolidated financial statements using the XBRL
markup language according to the requirements of the implementation of electronic format as
described in the ESEF Regulation;
 evaluating the appropriateness of the Group’s' use of XBRL markups selected from the ESEF
taxonomy and the creation of extension markups where no suitable element in the ESEF
taxonomy has been identified; and
 evaluating the appropriateness of anchoring of the extension elements to the ESEF taxonomy.
We believe that the evidence we have obtained is sufficient and appropriate to provide a basis for our
conclusion.
Conclusion
In our opinion, based on the procedures performed, the Presentation of the Consolidated Financial
Statements complies, in all material respects, with the ESEF Regulation.
Appointment
We were first appointed as auditors by the Bank’s shareholder’s resolution on 28 November 2018. Our
appointment has been renewed annually by shareholder’s resolution representing a total period of
uninterrupted engagement appointment of 8 years. Our appointment for the year ended 31 December
2025 was approved by the shareholder’s
resolution on 19 August 2025.
The responsible certified auditor on the audit resulting in this independent auditor’s report is Jegors
Podosiņņikovs.
PricewaterhouseCoopers SIA
Certified audit company
Licence No. 5
Jegors Podosiņņikovs
Member of the Board
Certified auditor in charge
Certificate No. 238
Riga, Latvia
6 March 2026
Independent Auditor's Report is signed electronically with a secure electronic signature and contains a
time stamp.