Results of BRE Bank Group Q3 2012

Transcription

1 Results of BRE Bank Group Q Solid performance, business strength continues Management Board of BRE Bank SA Presentation for Investors and Analysts October 30, 2012

2 Agenda of Analysis of Results Macroeconomic Update & Outlook Appendix Additional Information: Selected Financial Data Detailed Results of of 2

3 Highlights of at BRE Bank Group Record high core income levels maintained NII and NFC at PLN 777 M, down 0.9% QoQ and up 0.9% YoY Total income at PLN 918 M Solid efficiency, on track to keep annual costs flat C/I at 44.5% in vs. 43.5% in H1/12 and 47.3% in Total costs up 0.2% YoY, but down 1.4% YtD; total income down 0.6% YoY Strong business expansion continued 50 thousand new retail clients and 229 new corporate clients added in Sound loan and deposit growth Prudent risk management Cost of risk at 79 bps in vs. 65 bps in ; YtD 70 bps NPL ratios remain well below market levels Stronger capital base and funding profile CAR and Core Tier 1 at 15.4% and 10.9% respectively Full compliance with Basel III capital and liquidity indicators Improving loans/deposits ratio and proven access to international debt markets 3

4 of Results, Key Financials in PLN M Change Q3/Q2 Core income 1) % BRE Analyzer Total income 2) % Total costs (428.4) (406.8) +5.3% (427.5) Loan Loss Provisions (134.9) (109.0) +23.8% (111.2) Profit before tax % Net profit 3) % ROE before tax 19.1% 20.2% -1.1p.p. 21.1% Core Tier % 10.10% +82 bps 10.15% CAR 15.44% 14.84% +60 bps 15.76% Note: 2011 results adjusted to reflect new presentation of SWAP points and operating leasing 1) Sum of Net interest income and Net fee & commission income; 2) Including Net other operating income; 3) Net profit attributable to owners of BRE Bank; 4

5 of in BRE Bank Group Development of Loans to Clients Sound lending growth maintained Development of Gross Loans (PLN M) 66,807 2,751 70,240 3, % 67,687 3,386 70,436 3, % 71,827 3,169 QoQ -3.1% YoY +15.2% BRE Analyzer 25,487 27,890 26,766 28,374 30, % +20.6% +8.5% +23.2% 38,569 38,689 37,535 38,791 37, % -1.2% -1.7% +2.9% Q4/11 Q1/12 Individual clients Corporate clients Other (incl. Public sector) +X.X% Excluding FX effect 5

6 of in BRE Bank Group Development of Deposits Strong client inflows in both retail and corporate segments Development of Deposits (PLN M) 48,953 1,512 54, % 49, , % 57, QoQ +6.2% YoY -59.4% BRE Analyzer 21,821 27,015 21,259 24,633 27, % +28.0% +6.3% +11.9% 25,620 26,701 27,977 26,979 28,678 Q4/11 Q1/12 Individual clients Corporate clients Public sector 6

7 BRE Bank funding structure details Key funding data Well improved loans/deposits ratio and further funding diversification BRE Bank Group s structure of funding, as of September 30, 2012 BRE Bank Group s funding strategy Other Subordinated liabilities Short-term funding Medium & longterm FX funding 5% 4% 3% 25% 63% Customer deposits Actual funding needs reduced by CHF loan book repayments (c. CHF 350 M per annum) Commerzbank mid-term funding plan EUR 2 B EMTN programme in place: First EUR 500 M tranche issued in October Strengthening of deposit base in Poland and Slovakia Limited usage of SWAP instruments Loan to Deposit ratio (%) Maturity of long-term funding instruments in original currencies, as of September 30, 2012, (LC in million) 131.6% 86.3% 125.1% 86.2% 131.2% 87.7% 130.1% 87.3% 120.9% 85.8% EUR Loans USD Loans CHF Loans CHF Subloans EUR EMTN Q4/11 Q1/ LtD Adjusted LtD over

8 Euro Medium Term Note (EMTN) Programme BRE Bank 3Y Inaugural Euro 500 M, Senior Unsecured Issuance provides an additional source of long-term funding Allocation by geography Allocation by investor type France Others Poland 4% Italy 3% 2% 7% 36% Germany Retail Pension Funds Others 5% 2% 5% 53% Investment Funds Switzerland 9% Benelux 9% 11% 19% Austria Banks 35% United Kingdom Order book at c. EUR 600 M closed after only two hours with a final spread at swap ms+225bps and nearly 100 investors participating 3-year tenor Fixed coupon at 2.75% Adds to funding base diversification BRE Finance France SA 500,000,000 Senior Unsecured 2.75% due 12 October

9 of in BRE Bank Group Business Development: Corporates & Financial Markets High growth of both corporate loans and deposits Loans (PLN M) Deposits (PLN M) +20.6% +28.0% +8.3% +13.4% 25,487 3,460 1,222 2,055 3,984 9,606 5,160 28,374 3,714 1,698 1,979 3,987 9,265 7,732 30,727 3,686 1,620 1,947 4,093 10,365 9,017 Other BBH BRE Leasing K3 K2 K1 21,821 2,471 1,623 6,650 11,077 24,633 2,555 3,036 8,525 10,517 27,937 3,946 2,893 8,856 12,242 Other K3 K2 K1 Clients Market shares (%) 13,878 1,153 4,211 8, % 14,653 1,213 4,348 9, % 14,882 1,229 4,446 9,207 Client split: K1 annual sales over PLN 500 M K2 annual sales PLN 30 M to PLN 500 M K3 annual sales PLN 3 M to 30 M 8.9% 6.3% 9.9% 6.8% 8.8% 6.3% 9.3% 6.7% 9.9% 6.7% Loans Deposits Q4/11 Q1/12 9

10 of in BRE Bank Group Business Development: Retail Banking Trust of 4 million retail clients Loans (PLN M) Deposits (PLN M) -1.7% +11.9% 38,569 7,968 2,786 38,791 8,246 3, % 37,931 8,451 3,676 25, ,815 26,979 6, % 28, ,641 27,815 27,064 25,804 Non-mortgage loans Mortgage loans PLN 16,763 20,459 19,992 Other Term deposits Mortgage loans FX Current accounts Clients (thou.) +5.3% Market shares (%) +1.2% 6.7% 6.7% 6.6% 6.7% 6.5% 3, ,326 3,995 4, ,447 3,487 Retail Banking CZ/SK Retail Banking PL Cross-sell ratio 4.6% 4.6% 4.7% 4.5% 4.7% Loans Deposits Q4/11 Q1/12 10

11 Award winning offering enhanced further Product innovations & Awards Appreciated by customers and external experts for continuous innovations adding value to retail and corporate banking offering Corporate banking ibre News Platform a new source of information for businesses Aggregated business news feed and comments available instantly to corporate clients Categories prepared to meet the expectations of different user groups (e.g. Stock Exchange, Money, Economy, Business Guidebook, Overview of events) Retail banking World MasterCard Miles & More in mbank and MultiBank Credit cards allowing clients to book miles and win awards in the prestigious Miles & More programme Incentives for regular customers after each year of active usage msaver innovative and pioneer programme for regular saving Savings increase after specified transactions: paying with cards, transfers or ATM money withdrawals 100 thousand msaver accounts opened by the end of September ibre FX recognized as the best in Poland in the "World's Best Internet Banks in Central & Eastern Europe 2012" contest by Global Finance ibre FX is fully integrated with the online corporate banking system allowing instant FX transactions MultiBank selected best traditional bank and mbank best with mobile banking offering in the "Friendly Bank of Newsweek" ranking mbank also with second position in category for best online bank 11

12 Agenda of Analysis of Results Macroeconomic Update & Outlook Appendix Additional Information: Selected Financial Data Detailed Results of of 12

13 Analysis of Results Income of BRE Bank Group Solid recurrent revenues with record high Net Interest Income BRE Bank Group Income (PLN M) -0.6% -0.4% QoQ YoY BRE Analyzer % +5.9% % -7.0% % +4.1% -1.3 Q4/11 Q1/12 Net Interest Income Net Fee and Commission Income Dividend Income Net Trading Income Gains less Lossess from Investment Securities Net Other Operating Result Note: income including PLN 32.3 M from the sale of factoring companies 13

14 Analysis of Results Costs of BRE Bank Group Strong efficiency amid increased investments Overhead Costs + Depreciation of BRE Bank Group (PLN M) +0.2% +5.3% QoQ YoY BRE Analyzer % -9.5% % -7.3% +11.6% -0.1% % +3.3% Q4/11 Q1/12 Personnel costs Material costs Depreciation Other 47.3% 47.7% 42.8% 43.5% 44.5% C/I ratio of BRE Bank Group (cumulative) 14

15 Analysis of Results Loan Portfolio Quality Risk indicators reflecting a gradual deceleration in the economy BRE Bank s NPL Ratio (%) 8.4% 8.2% 8.4% 8.6% 8.8% Value of impaired loan portfolio of BRE Bank Group (PLN M) +5.7% +9.0% 4.9% 4.9% 5.2% 5.1% 5.7% 3, ,356 3,287 3,402 3,445 3, * 3,526 Q4/11 Q1/12 Q4/11 Q1/12 BRE Bank (according to NBP rules) Market Insured export loans in temporary technical default * Impaired loan growth excl. insured impaired loans NPL Ratio of Mortgage Loan Portfolio (%) BRE Bank Group s NPL Ratio by segment (%) 2.2% 2.4% 2.5% 2.6% 2.7% 10.2% 8.9% 8.6% 8.0% 8.2% 1.1% 1.2% 1.4% 1.5% 1.7% 5.3% 2.4% 4.7% 2.6% 5.0% 2.9% 4.9% 3.1% 5.2% 3.3% Q4/11 Q1/12 Q4/11 Q1/12 BRE Bank Market BRE Bank Group Retail Portfolio Corporate Portfolio 15

16 Analysis of Results Loan Loss Provisions Prudent approach in risk management, conservative provisioning in the corporate segment BRE Bank Group s loan loss provisions (PLN M) QoQ YoY +21.3% % +46.7% % -0.8% Q4/11 Q1/12 61% 66% 66% 67% 65% Coverage ratio Cost of Risk (bps) Corporate clients Individual clients 70% Coverage ratio incl. IBNR provisions 16

17 Analysis of Results Loan Portfolio Structure Well diversified loan portfolio with granular structure BRE Bank Group s Sector Exposure by Industry, as of September 30, 2012 (%) Households 1.2% 1.7% 1.3% 23.3% 1.8% 2.6% 2.7% 2.9% 3.2% 6.5% Total: PLN 71.8 B 52.8% Real estate management Public administration Construction industry Liquid fuels and natural gas Transport and travel agencies Metals Wholesale trade Autos Management, consulting, advertising Other (below 1.2%) Total exposure to the construction sector at PLN 2.1 B (-6.9% QoQ) Granular construction portfolio: 10 largest exposures constitute 35% of the portfolio Since March 2009, the construction industry is treated as sensitive at BRE Bank implying highly restrictive lending policies 17

18 Analysis of Results Key Regulatory Ratios Higher level of CAR and Core Tier 1 reflecting prudent capital standards BRE Bank Group s Capital Adequacy Ratio BRE Bank s LCR and NSFR 15.8% 5.6% 15.0% 5.4% 16.9% 5.3% 14.8% 4.7% 15.4% 4.5% 108% 111% 103% Basel 3 requirement 100% 106% 10.2% 9.6% 11.6% 10.1% 10.9% Q4/11 Q1/12 RWA (PLN B) * 73.6* NSFR LCR Core Tier 1 Tier 2 * Including increased risk weights on FX retail loans 18

19 Analysis of Results Detailed Development of Core Tier 1 ratio and CAR BRE Bank Group s Core Tier 1 Ratio (%) Q1/12 Business development FX impact on RWA Higher FX ML risk weight Other Q2 12 Business development FX impact on RWA H1 12 net profit effect Other BRE Bank Group s Capital Adequacy Ratio (%) Q1/12 Business development FX impact on RWA Higher FX ML risk weight Other Q2 12 Business development FX impact on RWA H1 12 net profit effect Other 19

20 Agenda of Analysis of Results Macroeconomic Update & Outlook Appendix Additional Information: Selected Financial Data Detailed Results of of 20

21 Macroeconomic Update (1/2) Deeper slowdown or even recession risk Contribution to GDP growth (% YoY), forecasts Investment Net exports Consumption Inventories GDP y/y (%) Drop of GDP growth in Q2 12 to 2.4% YoY. Decreasing internal demand. Lower investment growth rate. Source: StatOffice Seasonally adjusted GDP rate (q/q), NBP reference rate (%) f Consumption and real wages (% YoY) Q1'05 Q4'05 Q3'06 Q2'07 Q1'08 Q4'08 Q3'09 Q2'10 Q1'11 Q4'11 Q3'12 private consumption y/y (%, LA) real wages y/y (%, RA) Necessity to rebuild savings, stagnation of real wages and worsening situation on the labour market negatively affect private consumption. GDP momentum, investments (%YoY) Source: NBP, StatOffice Q1'01 Q1'02 Q1'03 Q1'04 Q1'05 Q1'06 Q1'07 Q1'08 Q1'09 Q1'10 Q1'11 Q1'12 repo rate (%, LA) GDP, SA, 3qma, q/q, lag=2 (RA)* Investments y/y (LA) GDP, SA, 3qma, q/q, lag=3 (RA)* MPC delays rate cuts to improve its reputation. Economic slowdown and inflation drop should result in monetary easing cycle similar in scale to previous ones. Lower growth rate of infrastructural projects, higher uncertainty and worse perspectives for demand result in private investment limitations. * 3-quarter moving average with 2-quarter lag Source: NBP, StatOffice * 3-quarter moving average with 3-quarter lag Source: StatOffice 21

22 Macroeconomic Update (2/2) Monetary aggregates reflecting slowdown in the real economy 40% 30% 20% 10% 0% -10% Corporate loans and deposits (% YoY) -20% Jan-08 Aug-08 Mar-09 Oct-09 May-10 Dec-10 Jul-11 Feb-12 Sep-12 corporate deposits corporate loans corporate investment loans Weakening annual growth of investment loans (path similar to 2009). Expected negative quarterly loans rates in Negative corporate deposits dynamics. Source: NBP Stock indices, index = Jan-10 May-10 Sep-10 Jan-11 May-11 Sep-11 Jan-12 May-12 Sep-12 WIG20 (Poland) PX (Czech Rep.) S&P500 (USA) BUX (Hungary) ECB determination to safe the Eurozone and another rounds of QE support global stocks. Economic slowdown in EM result in slower growth of EM stock indices. Source: Bloomberg 70% 60% 50% 40% 30% 20% 10% Household loans and deposits (% YoY) 0% Jan-08 Aug-08 Mar-09 Oct-09 May-10 Dec-10 Jul-11 Feb-12 Sep-12 household deposits household loans mortgage Decelerating household credit growth. Necessity to rebuild savings supports longer term deposit growth. In 2012 we expect continuation of recent downtrends. Source: NBP CEE currencies vs. EUR, index = Jan-10 May-10 Sep-10 Jan-11 May-11 Sep-11 Jan-12 May-12 Sep-12 EUR/PLN EUR/CZK EUR/HUF Volatility of EM currencies reduced by ECB actions. Zloty supported by better balance of payments. Source: Bloomberg 22

23 2012 Outlook BRE Bank Group beyond 1 Implementation of the newly adopted strategy to ensure outperformance in an evolving client and regulatory environment 2 Business resilience despite uncertain market environment 3 Strong capital and ample liquidity underpinning the balance sheet 23

24 Agenda of Analysis of Results Macroeconomic Update & Outlook Appendix Additional Information: Selected Financial Data Detailed Results of of 24

25 Appendix Additional Information: Selected Financial Data & Historical Performance Page No. Detailed Results of the & Update on Strategy Page No. Consolidated Profit and Loss Account under IFRS 27 Retail Banking Consolidated Statement of Financial Position 28 of : Financial Results 41 BRE Bank Group s Ratios 29 Sales of New Retail Loans 42 BRE Bank Group s Historical Performance Mortgage Loans: Portfolio Structure & Quality 43 Net Interest Income & Margin 33 BRE Ubezpieczenia (BRE Insurance) 44 Fee and Commission Income 34 Corporates & Financial Markets Trading Income 35 of : Financial Results 46 Analysis: Assets & Liabilities 36 Leasing and Factoring 47 Analysis: Currency structure 37 Trading and Investment Activity: Market Shares 48 Analysis: Structure of loans and deposits 38 BRE Bank Hipoteczny (BBH) 49 Results of 39 Dom Inwestycyjny BRE Banku (DI BRE) 50 of BRE Analyzer 57 Contact Details 58 25

26 Appendix Additional Information: Selected Financial Data 26

27 Appendix Additional Information: Selected Financial Data Consolidated Profit and Loss Account under IFRS PLN thou. By quarter Q4/11 Q1/12 Net interest income 550, , , , ,085 Net fee and commission income 219, , , , ,052 Dividend income 12, ,642 11,191 Net trading income 93,978 76,502 97,681 83,304 99,478 incl. FX result 83,492 85,880 78,880 73,822 90,376 Gains less losses from investment securities 20,040 (1,250) 16,026 20,468 5,390 Net other operating income 27,176 41,309 40,960 30,844 24,515 Total operating costs (427,480) (435,518) (392,107) (406,829) (428,429) Overhead costs (378,621) (375,327) (343,766) (356,231) (383,126) Depreciation/Amortisation (48,859) (60,191) (48,341) (50,598) (45,303) Loan loss provisions (111,191) (89,549) (111,811) (108,967) (134,870) Profit before tax 384, , , , ,412 Net profit attributable to owners of BRE Bank 307, , , , ,064 Note: 2011 results adjusted to reflect new presentation of SWAP points and operating leasing BRE Analyzer 27

28 Appendix Additional Information: Selected Financial Data Consolidated Statement of Financial Position Assets (PLN thousand) Q4/11 Q1/12 Cash and balances with Central Bank Loans and advances to banks Trading securities Derivative financial instruments Loans and advances to customers Investment securities Pledged assets Intangible assets Tangible fixed assets Other assets T o t a l a s s e t s Liabilities (PLN thousand) Q4/11 Q1/12 Amounts due to other banks Derivative financial instruments Amounts due to customers Debt securities in issue Subordinated liabilities Other liabilities T o t a l l i a b i l i t i e s T o t a l e q u i t y T o t a l e q u i t y a n d l i a b i l i t i e s BRE Analyzer 28

29 Appendix Additional Information: Selected Financial Data BRE Bank Group s Ratios Financial Ratios Q4/11 Q1/12 Net Interest Margin YtD 2.5% 2.5% 2.4% 2.4% 2.4% Cost to Income Ratio (quarterly) 46.3% 48.9% 42.8% 44.2% 46.7% Cost to Income Ratio YtD 47.3% 47.7% 42.8% 43.5% 44.5% Cost of Risk (quarterly) 0.71% 0.54% 0.67% 0.65% 0.79% Cost of Risk YtD 0.63% 0.60% 0.67% 0.66% 0.70% ROE net YtD 16.44% 16.42% 16.34% 16.05% 15.18% ROA net YtD 1.28% 1.26% 1.41% 1.38% 1.30% Loans to Deposits 131.6% 125.1% 131.2% 130.1% 120.9% Adjusted Loans to Deposits 86.3% 86.2% 87.7% 87.3% 85.8% Capital Adequacy Ratio 15.76% 14.96% 16.93% 14.84% 15.44% Core Tier 1 ratio 10.15% 9.59% 11.62% 10.10% 10.92% Equity / Assets 8.25% 8.16% 9.17% 9.28% 9.21% RWA / Assets 66.8% 66.8% 69.8% 78.4% 73.7% NPL ratio 5.3% 4.7% 5.0% 4.9% 5.2% NPL coverage ratio 61% 66% 66% 67% 65% NPL coverage ratio incl. general provisions 66% 73% 72% 74% 70% 29

30 Appendix BRE Bank Group s historical performance (1/3) Net interest income (PLN M) Net fee and commission income (PLN M) NIM % +25% % % Trading and other income (PLN M) +1% Total income (PLN M) +17% % % BRE Analyzer 30

31 Appendix BRE Bank Group s historical performance (2/3) Operating costs (PLN M) Pre-provision income (PLN M) +10% 63.7% 55.5% 55.1% 54.2% 51.8% 47.7% 43.5% 44.5% C/I ratio +26% % % Loan Loss Provisions (PLN M) Net profit (PLN M) Cost of risk (bps) % 28.1% 27.4% 3.2% 11.8% 16.4% 16.1% 15.2% ROE net +22% % % BRE Analyzer 31

32 Appendix BRE Bank Group s historical performance (3/3) Total assets (PLN B) Equity and CAR (PLN M) +19% +5% 10.39% 10.16% 10.04% 11.50% 15.90% 14.96% 14.84% 15.44% CAR +4% % Total gross loans (PLN B) +2% Total deposits (PLN B) +10% % % Mortgage loans Non-mortgage loans Corporate loans Public sector and other Individual clients Corporate clients Public sector BRE Analyzer 32

33 Appendix Additional Information: Selected Financial Data Net Interest Income & Margin Interest Income Structure (PLN M) , , , , % 1% Interest Expense Structure (PLN M) % 3% 8% % % % 3% % Q4/11 Q1/12 Q4/11 Q1/12 NIM 1) Cash and short-term deposits Debt securities held for trading Amounts due to banks Other borrowed funds Investment securities Other Amounts due to customers Other Loans and advances Issue of debt securities 1) Margin calculated as net interest income to average income-earning assets BRE Analyzer 33

34 Appendix Additional Information: Selected Financial Data Fee and Commission Income Commission Income Structure (PLN M) QoQ YoY % 16% -17.8% +14.3% +0.4% -9.8% +10.7% -0.3% % 6% -4.8% +4.7% -39.5% +5.6% % -1.5% -7.9% % 1% 16% -9.9% -7.7% -18.8% -1.4% Q4/11 Q1/12 Credit related fees Portfolio management Guarantees granted and trade finance Payment card fees Brokerage fees Accounts & money transfers Insurance activity Other (incl. custody) BRE Analyzer 34

35 Appendix Additional Information: Selected Financial Data Trading Income Net Trading Income Structure (PLN M) QoQ YoY % -13.2% % +8.2% -9.1 Q4/11 Q1/12 FX Result Other Trading Income BRE Analyzer 35

36 Appendix Additional Information: Selected Financial Data Analysis: Assets & Liabilities Structure of Assets (PLN B) Structure of Liabilities (PLN B) % 5% 14% 2% 1% % 9% 3% % % % % 09/11 12/11 03/12 06/12 09/12 09/11 12/11 03/12 06/12 09/12 Amounts due from banks Loans and advances to customers Trading securities Derivative financial instruments Investment securities Pledged assets Other Liabilities to other banks Liabilities to customers Debt securities in issue Equity (total) Other BRE Analyzer 36

37 Appendix Additional Information: Selected Financial Data Analysis: Currency Structure Currency Structure of Loans (net) (PLN B) Currency Structure of Amounts due to banks and customers 1) (PLN B) % 3% 16% % 2% 11% % % % % 09/11 12/11 03/12 06/12 09/12 09/11 12/11 03/12 06/12 09/12 PLN CHF EUR USD Other PLN CHF EUR USD Other 1) incl. amounts due to other banks and customers and subordinated liabilities BRE Analyzer 37

38 Appendix Additional Information: Selected Financial Data Analysis: Structure of loans and deposits BRE Bank Group s Loan Structure, as of September 30, 2012 BRE Bank Group s Deposit Structure, as of September 30, 2012 Public sector loans and other PLN 3.2 B Non-mortgage retail loans PLN 8.4 B 12% 4% Total: PLN 71.8 B 43% Corporate loans PLN 30.7 B Individual clients: term deposits PLN 8.6 B Public sector clients PLN 0.6 B 15% 1% Total: PLN 57.2 B 28% Corporate clients: current accounts 1) PLN 16.1 B Mortgage PLN loans PLN 3.7 B 5% 36% Mortgage FX loans PLN 25.8 B Individual clients: current accounts 1) PLN 20.0 B 35% 21% Corporate clients: term deposits PLN 11.9 B 1) incl. other liabilities, repo transactions, loans and advances received 38

39 Appendix Additional Information: Selected Financial Data Results of Profit before Tax of Consolidated (PLN M) Q Q BRE Ubezpieczenia Aspiro BRE WM BRE Leasing BRE Bank Hipoteczny DI BRE BRE Faktoring BRE.locum Other Retail Banking Corporates & Financial Markets profit before tax of consolidated subsidiaries at PLN 51.3 M v. PLN 71.1 M in (-27.8% YoY) 39

40 Appendix Detailed Results of the Retail Banking 40

41 Appendix BRE Bank Retail Banking of : Financial Results Profit before Tax of Retail Banking Segment 1) (by quarter, PLN M) % % Number of Retail Outlets Q4/11 Q1/12 Retail Banking PL mbank CZ/SK 1) Incl. BRE Ubezpieczenia, BRE Wealth Mgt., Aspiro and consolidation adjustments Q4/11 Q1/12 Multibank Aspiro Financial Centres mkiosks (incl. Partner Kiosks) mbank CZ/SK Total Retail Loans 2) (PLN B) -0.9% -2.2% Total Retail Deposits 2) (PLN B) +19.9% +5.5% CZ/SK PL ) ) 09/11 12/11 03/12 06/12 09/12 09/11 12/11 03/12 06/12 09/12 2) Based on management information 3) Including insurance-linked deposits 41

42 Appendix BRE Bank Retail Banking Sales of New Retail Loans Quarterly Sales of Mortgage Loans 1) (PLN M) Quarterly Sales of Non-Mortgage Loans 1) (PLN M) -56.0% +48.2% +16.7% % % % Q4/11 Q1/12 Q4/11 Q1/12 PLN FX 1) Historical data restated to take account of changes in internal sales reporting methodology incl. migration of Private Banking client loans onto the retail banking platform and increases on existing credit card balances 42

43 Appendix BRE Bank Retail Banking Mortgage Loans: Portfolio Structure and Quality BRE Bank s Mortgage Loan Portfolio (Retail Banking 1) loans to individuals) Balance-sheet value (PLN B) Average maturity (years) Currency Structure of Retail Banking Mortgage Loan Portfolio (Household Loans) at in Poland 13% in Poland, Czech Republic & Slovakia 18% Average value per loan (PLN thou.) Average LTV (%) NPL (%) As of FX 87% PLN Structure of the Retail Banking 1) Loan Portfolio (Household Loans) at By loan type 83% FX Local currency By currency 5% 3% 4% 1% 24% 87% 76% 1) mbank/pl and MultiBank 2) Other includes mainly car loans, loans for goods, services and stocks Mortgage Loans Credit Cards Credit Lines Cash Loans Other 2) FX Local currency 43

44 Appendix BRE Bank Retail Banking BRE Ubezpieczenia (BRE Insurance) Bancassurance Retail Gross Written Premiums (PLN M) +11% Direct Insurance (Internet platform) Gross Written Premiums (PLN M) +8% Co-operation with BRE Leasing Gross Written Premiums (PLN M) Profit before Tax 1) (PLN M) -9% -39% ) Gross profit of BRE Ubezpieczenia according to its statutory financial statements (including deferred acquisition costs) 44

45 Appendix Detailed Results of the Corporates & Financial Markets 45

46 Appendix Corporates and Financial Markets of : Financial Results Result before Tax of the Segment (by quarter, PLN M) Corporate Branch Network -22.1% Offices Branches -27.5% Q4/11 Q1/12 Q4/11 Q1/12 Loans to enterprises 1) (PLN M) Deposits of enterprises 1) (PLN M) +25.4% 1,549 1, % 1, % +4.1% 15,616 17,742 16,310 1) 17,840 1) 17,811 1) 16,788 20,910 16,702 17,596 18,318 09/11 12/11 03/12 06/12 09/12 09/11 12/11 03/12 06/12 09/12 1) Corporate loan and deposit volume according to current NBP rules loans classified as securities 46

47 Appendix Corporates and Institutions Leasing and Factoring Profit before Tax (PLN M) Factoring contracts (PLN M) -1% +9% Factoring Companies Transfinance BRE Faktoring Profit before Tax (PLN M) Leasing contracts (PLN M) +50% -25% BRE Leasing

48 Appendix Trading and Investment Activity Market Shares BRE Bank s Market Share 1) in Investment Banking Services BRE Bank in the Market for Non-Treasury Debt 2) for (PLN M) 29, % 25.1% 25,063 18,465 4,157 4,918 4,566 Treasury Bills and Bonds IRS/FRA Short-term Debt Corporate Debt Mid-term bank Debt 7.3% #3 #2 #2 16.6% 16.9% 24.7% FX Spot & Forward Market BRE Bank 1) As of ; calculations based on own and NBP data 2) Based on Fitch Polska S.A., Rating & Rynek, and own calculations (excluding BGK road bonds) 48

49 Appendix Trading and Investment Activity BRE Bank Hipoteczny (BBH) Loan Portfolio (PLN M) Balance-sheet Exposure (net value) Profit before Tax (PLN M) +2.9% +0.3% 4, , , , , % 3,322 3,549 3,447 3,514 3, /11 12/11 03/12 06/12 09/12 Commercial loans Local government loans Housing loans 1) 1) In July 2004 BRE Bank Hipoteczny stopped granting loans to retail customers. The volume of housing loans represents the existing portfolio still managed by the Bank 49

50 Appendix Trading and Investment Activity Dom Inwestycyjny BRE Banku (DI BRE) Number of Accounts with DI BRE (thou.) DI BRE accounts 52.2 ebroker (mbank) Brokerage Service (MultiBank) 35.8 TOTAL DI BRE Equities Trading (PLN M) 7,511 DI BRE Market Share in, by volume 1) Equities 4.88% #7 Bonds 3.32% #7 Futures 16.64% #1 2,099 6,135 1,563 5,995 1,610 4, ,330 1,044 Options 22.41% #2 1) Calculations based on WSE, DI data 5,412 4,572 4,385 3,451 4,286 Profit before Tax (PLN M) -63.1% Q4/11 Q1/12 ebroker & MultiBank brokerage services trading Direct trading via DI BRE

51 Appendix BRE Bank Group s Strategy One Bank for Customers and Employees 51

52 BRE Bank Group s Vision of BRE Bank Group One Bank for Customers and Employees Organic growth supported by cutting-edge technology, anchored on a healthy balance sheet structure, culture of cooperation between people, enhanced by one network and a unified brand leading to improvement of long-term revenue generation capability and profitability, maximizing long term value for shareholders, customers and employees. 52

53 BRE Bank Group s Highlights of BRE Bank Group s Strategy Key initiatives of the Strategy Better use of infrastructure Outlets available for all client groups Harmonized processes Unification of branding policy Higher recognition Effective marketing Sustainable growth Diversification of funding sources, more deposits More PLN loans, with higher margin ROBUST BALANCE SHEET Leader in Mid-Caps servicing Selective growth in SME segment Integrated offer of corporate and investment banking Leader of innovations Attracting younger clients, cross-selling to affluent clients The most convenient transactional bank Further business integration 53

54 Growth Potential BRE Bank Group s One brand The Bank will strengthen its market image under mbank brand Current situation Future benefits 3 main brands of BRE Bank Group: mbank, MultiBank, BRE Bank mbank serves 2.8 M of clients out of 3.4 M of BRE Bank s clients in Poland mbank users are among the most satisfied bank clients mbank is one of the most willingly recommended banks in Poland based on NPS indicator Popularity BRE Bank will take advantage of the potential of the strongest and the most recognisable brand in the Group One brand will increase media and image efficiency of the Bank Strengthening of internal integration of the organisation The 3 main brands operated by BRE Bank will be replaced by the strongest mbank brand Source: Own estimates, external surveys, including BrandZ MB SMG/KRC analysis, Audyt BD TNS 54

55 BRE Bank Group s One Network Integrated distribution network available to all clients Current situation Number of branches PKO BP 1,198 Future benefits Limited access to the outlets for 3 M of mbank clients More complex and profitable products are still sold mainly in the outlets Current share-of-wallet in retail banking and SME segment below aspiration Pekao SA 1,002 BZ WBK + KB 899 Getin 542 Millennium 447 Raiffeisen +Polbank ING 439 BRE Bank One network 183 Citi Handlowy MultiBank 48 BRE Bank (Corporate branches) Wider availability of branches supporting affluent retail and SME segment growth Increased sales of financial products Enhanced client loyalty Better use of our existing infrastructure without further expansion of the distribution network Source: Banks annual consolidated financial statements (data as of ); for Getin Q1/12 Presentation; Merger press release for Raiffeisen+Polabank. 55

56 BRE Bank Group s Financial Performance Targets An efficient business platform supported by a strong balance sheet Loan to Deposit Ratio Assets CAGR* Income Growth CAGR Cost/Income Ratio % 3% 14% 6% 48.3% <47.5% Net Stable Funding Ratio Core Tier 1 Ratio Net ROA Gross ROE 109% >110% 9.6 > % 1.4% + 21% 15% Focus maintained on profitability accompanied by a more robust balance sheet * Growth adjusted for FX effect 56

57 Further enhancing our reporting standards BRE Analyzer An innovative and convenient tool to analyse BRE Bank Group s financial and business data Analyse, customise, export and print selected data on BRE Bank Group, covering all periods since Q1/06 in quarterly and annual series of key financials and ratios Details on each P&L item Includes FX structure and portfolio quality data Data covering all business segments Comprehensive report on regulatory capital Clicking on BRE Analyzer icon where available in the presentation provides direct access to specific data in BRE Analyzer Visit BRE Analyzer: www. breanalyzer.brebank.pl 57

58 Contact details BRE Bank s Investor Relations at your service: Relacje.inwestorskie@brebank.pl Wojciech Chmielewski Head of Investor Relations Direct dial: Fax: wojciech.chmielewski@brebank.pl Joanna Filipkowska Deputy Head of Investor Relations Paweł Lipiński Investor Relations Officer Direct dial: Fax: joanna.filipkowska@brebank.pl Direct dial: Fax: pawel.lipinski@brebank.pl Visit our Investor Relations website: See our 2011 on-line Annual Report: Visit BRE Analyzer: www. breanalyzer.brebank.pl 58