Dear participants of the pension funds OTP Pension and FreeFlight,

We invite you to review the performance results of OTP Capital’s non-state pension funds for February 2026.

GENERAL ECONOMIC SITUATION IN UKRAINE

At the beginning of 2026, inflation continued its downward trend and slowed to 7.4% year-on-year in January, creating conditions for a potential further easing of monetary policy.

At the same time, the National Bank of Ukraine (NBU) maintains a cautious approach due to the delayed inflationary effects of damage to the energy infrastructure, which may increase business costs and limit the economy’s production capacity.

According to the NBU’s baseline macroeconomic forecast, the key policy rate is expected to decrease to 14.5% in 2026, with the possibility of further easing over the forecast horizon.

HRYVNIA AND FOREIGN CURRENCY INSTRUMENTS

In February, yields on hryvnia-denominated government bonds (OVDP) at primary auctions continued to decline amid expectations of further monetary easing and strong investor demand:

• 1-year bonds — decreased from 16.19% to 15.32%
• 3-year bonds — decreased from 17.44% to 16.28%

Interest rates on term deposits in the banking sector declined by 50 basis points, ranging between 9–14% in hryvnia, while USD deposit rates remained unchanged at up to 2%, depending on the maturity.

In February, the Ministry of Finance resumed the issuance of foreign currency-denominated OVDP on the primary market with a yield of 3.8% in USD, which is lower than the December level (4.01%). On the secondary market, yields on FX-denominated OVDP did not exceed 3.4% in USD and 1.5% in EUR.

The balance between supply and demand in the foreign exchange market improved, leading to a strengthening of the hryvnia from 43.59 to 43.13 UAH/USD. The volume of NBU currency interventions declined by 15.5% to USD 3 billion.

A moderate and controlled depreciation of the hryvnia to 43.5–44 UAH/USD is expected by the end of the first quarter of 2026.

Positive signals regarding external financing, including the EU’s decision to provide the so-called “reparations loan,” as well as regular coupon payments on Eurobonds, supported investor sentiment. As a result, Ukrainian Eurobond prices increased by 1–4.2% in February, depending on maturity, reaching record levels.

PERFORMANCE OF NON-STATE PENSION FUNDS

OTP PENSION

Fund Portfolio

In February, the fund continued portfolio management in line with its strategy of increasing long-term yield.

OVDP transactions

• OVDP sold: UAH 5.9 million
• OVDP purchased: UAH 10.1 million with longer maturities and significantly higher yields

Deposit placements

• UAH 0.7 million — Agroprosperis Bank JSC
• UAH 9.5 million — Ukreximbank JSC

Financial Results

Total Net Asset Value (NAV) at the end of February amounted to UAH 855.1 million.

• Fund assets increased by UAH 15.8 million (+1.8%)
• Contributions received: UAH 9.8 million
• Pension payments made: UAH 1.2 million

Performance

The fund generated 0.8% return in February, and 14.9% over the last 12 months.

FREEFLIGHT

In February, the fund continued building a balanced portfolio with a focus on foreign currency instruments and risk control.

Asset transactions

• UAH 1.2 million invested in hryvnia-denominated OVDP
• USD 73 thousand placed on deposit with Sense Bank JSC

Financial Results

Total NAV in February amounted to UAH 84.9 million.

• Fund assets increased by UAH 2.1 million (+2.4%)
• Contributions received: over UAH 1.3 million
• Pension payments made: UAH 141.6 thousand

Performance

The fund generated a 0.2% return in USD in February, and 2.3% in USD over the last 12 months.