Form: SAB-QSr 1/2002 (quarter/year)

Transcription

1 Form: (quarter/year) (for banks) Pursuant to Par. 57 sec. 2 and Par. 58 sec. 1 of the Cuncil of Ministers Regulation dated 16 October Journal of Laws (Dz.U.) No. 139, item 1569 and of 2002, No. 31 item 280 The Management Board of Bank Przemysłowo-Handlowy PBK SA announces this consolidated quarterly report for the 1st quarter of the 2002 financial year. dated (submission date) SELECTED FINANCIAL DATA 1st quarter PLN'000 1st quarter EUR' to to to to I. Interest income II. Fee and commission income III. Result on banking operations IV. Result on operations V. Gross profit (loss) VI. Net profit (loss) VII. Net operating cash flow VIII. Net cash flow investment activity IX. Net cash flow financing activity X. Total net cash flow XI. Total assets XII. Dues to the central bank XIII. Dues to the financial sector XIV. Dues to the non-financial and public sectors XV. Shareholders' funds XVI. Initial capital XVII. Number of shares XVIII. Book value per share (PLN/EUR) 178,40 172,35 49,51 47,65 XIX. Diluted book value per share (PLN/EUR) 176,51 170,53 48,98 47,15 XX. Capital adequacy ratio 14,19 15,70 3,94 15,70 XXI. Profit (loss) per ordinary share (PLN/EUR) 11,22 16,86 3,11 4,66 XXII. Diluted profit (loss) per ordinary share (PLN/EUR) 11,10 16,68 3,08 4,61 XXIII. Dividend declared or paid per ordinary share (PLN/EUR) 3,80 4,92 1,05 1,36 Komisja Papierów Wartościowych i Giełd 1

2 CONSOLIDATED BALANCE SHEET as at as at as at as at end end of previous of quarter quarter end of quarter end of previous quarter Assets I. Cash, transactions with the Central Bank II. Debt securities eligible for rediscounting at the Central Bank III. Dues the financial sector Short-term dues a) current account b) other short-term dues Long-term dues IV. Dues the non-financial sector Short-term dues a) current account b) other short-term dues Long-term dues V. Dues the public sector Short-term dues a) current account b) other short-term dues Long-term dues VI. Receivables securities purchased under repurchase agreements VII. Debt securities VIII. Dues subsidiaries priced by equity accounting Subsidiaries Inter-related Affiliated IX. Shares of subsidiary companies priced by equity accounting X. Shares of inter-related companies priced by equity accounting XI. Shares of affiliated companies priced by equity accounting XII. Shares of other companies XIII. Other securities and financial assets XIV. Intangible assets, including: company goodwill XV. Goodwill of subsidiaries XVI. Tangible fixed assets XV. Other assets Assets acquired for disposal Inventory Other XVI. Prepayments and accrued income Deferred corporate income tax Other prepayments and accrued income Total assets Komisja Papierów Wartościowych i Giełd 2

3 Liabilities I. Dues to the central bank II. Dues to the financial sector Short-term dues a) current account b) other short-term dues Long-term dues III. Dues to the non-financial sector Short-term dues a) in the current account, including: savings b) other short-term dues, including: savings Long-term dues, including: savings IV. Dues to the public sector Short-term dues a) current account b) other short-term dues Long-term dues V. Liabilities arising securities sold under repurchase agreements VI. Liabilities debt securities issued short-term Long-term VII. Other liabilities financial instruments VIII. Liabilities to controlled companies priced by equity accounting Subsidiaries Inter-related Affiliated IX. Special funds and other liabilities X. Accrued costs and deferred income including suspended items Accrued costs Negative goodwill Other deferred income and suspended items XI. Negative goodwill of subsidiaries XII. Reserves Deferred corporate income tax reserve Other reserves a) short-term b) long-term XIII. Subordinated liabilities XIV. Minority shareholders' capital XV. Share capital XVI. Payments due for share capital (negative amount) XVII. Own shares (negative amount) XVIII. Supplementary capital XIX. Revaluation reserve XX. Other reserve capital XXI. Exchange differences re-pricing subsidiaries Positive exchange differences Negative exchange differences XXII. Retained earnings or uncovered loss brought XXIII. Net profit (loss) Total liabilities Capital adequacy ratio 14,19 17,36 15,70 15,81 Book value Number of shares Book value per share (PLN) 178,40 174,25 172,35 169,15 Expected number of shares Diluted book value per share (PLN) 176,51 172,40 170,53 167,36 Komisja Papierów Wartościowych i Giełd 3

4 OFF-BALANCE SHEET ITEMS end of quarter as at as at as at as at end end of previous of quarter quarter end of previous quarter I. Off-balance contingencies and commitments Commitments undertaken: a) financing b) guarantees Commitments received: a) financing b) guarantees II. Commitments under buy/sell transactions III. Other: assets swapped for debt or as a result of restructuring securities provided as guarantees securities received as guarantees and other collateral reducing risk-weighed assets transactions in securities liabilities under transactions in derivatives other commitments Total off-balance items quarter CONSOLIDATED PROFIT AND LOSS ACCOUNT... to to quarter... to to I. Interest income II. Interest expense III. Result on interest (I-II) IV. Commission income V. Commission expense VI. Result on commission (IV-V) VII. Net sales of products, goods and materials - - VIII. Cost of products, goods and materials sold - - IX. Selling costs - - X. Result on sales (VII-VIII-IX) - - XI. Income shares, interests, other variable-income securities and property rights From subsidiaries From inter-related companies From affiliates From other companies - - XII. Result on financial operations XIII. Foreign exchange result XIV. Result on banking operations XV. Other operating income XVI. Other operating expense XVII. Bank operating costs and overheads XVIII. Depreciation of fixed assets and amortisation of intangible assets XIX. Charges to provisions and adjustments Charges to specific provisions and general risk provision 2. Financial asset re-pricing XX. Release of provisions and adjustment-related decrease Release of specific provisions and general risk provision Financial asset re-pricing - - XXI. Difference between provisions and adjustments (XIX XX) XXII. Operating result XXIII. Result on extraordinary activities Extraordinary profit Extraordinary losses 1 42 XXIV. Write-down of subsidiaries' goodwill XXV. Write-down of negative subsidiaries' goodwill - - XXVI. Gross profit (loss) Komisja Papierów Wartościowych i Giełd 4

5 XXVII. Corporate income tax Current Deferred XXVIII. Other obligatory decrease of profit (increase in loss) - - XXIX. Share of net profits (losses) of subsidiaries priced by equity accounting XXX. Minority shareholders' profit (loss) XXXI. Net profit (loss) Net profit (loss) (per annum) Weighed average number of ordinary shares Profit (loss) per ordinary share (PLN) 11,22 16,86 Average weighed diluted number of ordinary shares Diluted profit (loss) per ordinary share (PLN) 11,10 16,68... quarter... quarter CHANGES IN CONSOLIDATED SHAREHOLDERS' FUNDS... to to to to I. Shareholders' funds at beginning of period (opening a) changes in accounting policies b) correction of material errors I.a.Shareholders' funds at beginning of period (opening balance sheet) after adjustment to comparable data 1. Share capital at beginning of period Changes in share capital - - a) Increase: issue of shares - - b) Decrease - - '- share redemption Share capital at period end Due payments for initial capital at beginning of period Change in due payments for initial capital - - a) increase - - b) decrease Due payments for initial capital at period end Own shares at beginning of period - - a) increase - - b) decrease Own shares at period end Supplementary capital at beginning of period Changes in supplementary capital a) increase fixed asset sales b) decrease fixed asset sales Supplementary capital at period end Revaluation reserve at beginning of period Changes in revaluation reserve a) increase reserve for anniversary awards, old-age and disability retirement severance pay for Bank employees calculated using the actuarial method - charge to reserve for deferred corporate income tax in connection with accounting policy changes fixed asset sales - 19 b) decrease charge to reserve for deferred corporate income tax in connection with accounting policy changes fixed asset sales Revaluation reserve at period end General banking risk fund at beginning of period Change in general banking risk fund - - a) increase - - b) decrease General banking risk fund at period end Other reserve capital at beginning of period Change in other reserve capital - - a) increase - - b) decrease Other reserve capital at period end Komisja Papierów Wartościowych i Giełd 5

6 8. Exchange difference pricing subsidiaries - 9. Retained earnings (uncovered loss) brought forward at Retained earnings brought forward at beginning of a) accounting policy changes b) material error correction Retained earnings brought forward at beginning of period, adjusted to comparable data Change in retained earnings brought forward a) increase - previous years' profit distribution b) decrease 9.4. Retained earnings brought forward at period end Uncovered loss brought forward at beginning of - - a) accounting policy changes - b) material error correction Uncovered loss brought forward at beginning of - period, adjusted to comparable data 9.7. Change in uncovered loss brought forward - a) increase - b) decrease Uncovered loss brought forward at period end Retained earnings or uncovered loss brought Net result a) net profit b) net loss II. Shareholders' funds at period end (closing balance) III. Shareholders' funds after proposed profit distribution (loss covering) CONSOLIDATED CASH FLOW... quarter STATEMENT... to to quarter... to to A. Operating cash flow - indirect method I. Net profit (loss) II. Total adjustments Minority shareholders' profit (loss) Share of net profit (loss) of subsidiaries priced by equity - - accounting 3. Write-down write-down of subsidiaries' goodwill and negative subsidiaries' goodwill 4. Foreign exchange (profit) loss Interest and profit sharing (dividend) (Profit) loss on investment activities Change in reserves Change in inventories Change in debt securities Change in dues the financial sector Change in dues the non-financial and public sector 12. Change in receivables securities bought under repurchase agreements 13. Change in shares, other securities and financial assets Change in dues to the financial sector Change in dues to the non-financial and public sector 16. Change in liabilities securities sold under repurchase agreements 17. Change in liabilities securities Change in other liabilities Change in accrued costs Change in deferred income and suspended items Other adjustments III. Net operating cash flow (I+/-II) - indirect method B. Cash flow investment activities I. Income Sales of subsidiaries' shares Sales of shares of inter-related companies 3. Sales of shares of affiliated companies Sales of shares of other companies, other securities and financial assets Sales of intangible and tangible fixed assets Komisja Papierów Wartościowych i Giełd 6

7 Sales of investments in real-estate and intangible assets 7. Other investment income II. Expense Purchase of shares of subsidiaries Purchase of shares of inter-related companies - 3. Purchase of shares of affiliated companies Purchase of other shares, securities and financial assets Purchase of intangible assets and tangible fixed assets 6. Investment in real estate and intangible assets Other investment expense III. Net cash flow investment activities (I-II) C. Cash flow financing activities I. Income Long-term loans banks Long-term loans other financial institutions Issues of debt securities Increase in subordinated loans - - capital payments Other financing income II. Expense Repayment of long-term loans extended by banks 2. Repayment of long-term loans extended by other financial institutions 3. Debt securities redemption On account of other financial liabilities Financial leasing rent payment Decrease in subordinated debt Dividend and other payments to shareholders - - shareholders Profit distribution expense other than payments to - - shareholders 10. Own share buy-back Other financial expense III. Net cash flow financing activities (I-II) D. Total net cash flow (A.III+/-B.III+/-C.III) E. Balance-sheet change in cash, including: change in cash related to foreign exchange differences F. Cash at beginning of period G. Cash at period end (F+/- D), including: limited availability cash - Komisja Papierów Wartościowych i Giełd 7

8 ABBREVIATED QUARTERLY FINANCIAL REPORT BALANCE SHEET end of quarter as at as at as at as at end end of previous of quarter quarter end of previous quarter Assets I. Cash, transactions with the Central Bank II. Debt securities eligible for rediscounting at the Central Bank III. Dues the financial sector Current account Term IV. Dues the non-financial sector Current account Term V. Dues the public sector Current account Term VI. Receivables securities purchased under repurchase agreements VII. Debt securities VIII. Shares of subsidiary companies IX. Shares of inter-related companies X. Shares of affiliated companies XI. Shares of other companies XII. Other securities and financial assets XIII. Intangible assets, including goodwill XIV. Tangible fixed assets XV. Other assets Assets acquired for disposal Other XVI. Prepayments and accrued income Deferred corporate income tax Other prepayments and accrued income Total assets Komisja Papierów Wartościowych i Giełd 8

9 Liabilities I. Dues to the central bank II. Dues to the financial sector Current account Term III. Dues to the non-financial sector Savings accounts, including: a) current b) term Other, including: a) current b) term IV. Dues to the public sector Current account Term V. Liabilities arising securities sold under repurchase agreements VI. Liabilities debt securities issued short-term Long-term VII. Other liabilities financial instruments VIII. Special funds and other liabilities IX. Accrued costs and deferred income including Accrued costs Negative goodwill Other deferred income and suspended items X. Reserves Deferred corporate income tax reserve Other reserves a) short-term b) long-term XI. Subordinated liabilities XII. Initial capital XIII. Payments due for initial capital (negative amount) XIV. Own shares (negative amount) XV. Supplementary capital XVI. Revaluation reserve XVII. Other reserve capital XVIII. Retained earnings (uncovered loss) brought XIX. Net profit (loss) Total liabilities Capital adequacy ratio 14,19 17,36 15,70 15,81 Book value Number of shares Book value per share (PLN) 176,11 172,21 170,40 167,36 Expected number of shares Diluted book value per share (PLN) 174,24 170,39 168,59 165,59 Komisja Papierów Wartościowych i Giełd 9

10 OFF-BALANCE SHEET ITEMS end of quarter as at as at as at as at end end of previous of quarter quarter end of previous quarter I. Off-balance contingencies and commitments Commitments undertaken: a) financing b) guarantees Commitments received: a) financing b) guarantees II. Commitments under buy/sell transactions III. Other: assets swapped for debt or as a result of restructuring debt securities issued as guarantees securities received as guarantees and other collateral reducing risk-weighed assets transactions in securities liabilities under transactions in derivatives other commitments Total off-balance items PROFIT AND LOSS ACCOUNT... quarter... to to quarter... to to I. Interest income II. Interest expense III. Result on interest (I-II) IV. Commission income V. Commission expense VI. Result on commission (IV-V) VII. Income shares, interests, other variable-income securities and property rights From subsidiaries From inter-related companies From affiliates From other companies - - VIII. Result on financial operations IX. Foreign exchange result X. Result on banking operations XI. Other operating income XII. Other operating expense XIII. Bank operating costs XIV. Depreciation of fixed assets and amortisation of intangible assets XV. Charges to provisions and adjustments Charges to specific provisions and general risk provision 2. Financial asset re-pricing - XVI. Release of provisions and adjustment-related decrease Release of specific provisions and general risk provision Financial asset re-pricing - 0 XVII. Difference between provisions and adjustments (XV XVI) XVIII. Operating result XIX. Result on extraordinary activities Extraordinary profit Extraordinary losses 1 42 XX. Gross profit (loss) XXI. Corporate income tax Current Deferred XXII. Other obligatory decrease of profit (increase in loss) - - XXIII. Share of net profits (losses) of subsidiaries priced by equity accounting XXIV. Net profit (loss) Net profit (loss) (per annum) Weighed average number of ordinary shares Profit (loss) per ordinary share (PLN) 10,54 16,23 Average weighed diluted number of ordinary shares Diluted profit (loss) per ordinary share (PLN) 10,43 16,05 Komisja Papierów Wartościowych i Giełd 10

11 1st quarter CHANGES IN SHAREHOLDERS' FUNDS... to to st quarter... to to I. Shareholders' funds at beginning of period (opening a) changes in accounting policies b) correction of material errors I.a. Shareholders' funds at beginning of period (opening balance sheet) after adjustment to comparable data 1. Share capital at beginning of period Changes in share capital - - a) Increase: issue of shares - - b) Decrease - - '- share redemption Share capital at period end Supplementary capital at beginning of period Changes in supplementary capital a) increase fixed asset sales b) decrease fixed asset sales Supplementary capital at period end Revaluation reserve at beginning of period Changes in revaluation reserve a) increase reserve for anniversary awards, old-age and disability retirement severance pay for Bank employees calculated using the actuarial method charge to reserve for deferred corporate income tax in connection with accounting policy changes fixed asset sales - 19 b) decrease fixed asset sales charge to reserve for deferred corporate income tax in connection with accounting policy changes 5.2. Revaluation reserve at period end General banking risk fund at beginning of period Change in general banking risk fund - - a) increase - - b) decrease General banking risk fund at period end Other reserve capital at beginning of period Change in other reserve capital - - a) increase - - b) decrease Other reserve capital at period end Retained earnings brought forward at beginning of Retained earnings brought forward at beginning of a) accounting policy changes b) material error correction Retained earnings brought forward at beginning of period, adjusted to comparable data Change in retained earnings brought forward a) increase previous years' profit distribution - - b) decrease Retained earnings brought forward at period end Uncovered loss brought forward at beginning of a) accounting policy changes b) material error correction 8.6. Uncovered loss brought forward at beginning of period, adjusted to comparable data 8.7. Change in uncovered loss brought forward a) increase - uncovered loss brought forward b) decrease 8.8. Uncovered loss brought forward at period end 8.9. Retained earnings or uncovered loss brought Net result a) net profit b) net loss II. Shareholders' funds at period end (closing balance) III. Shareholders' funds after proposed profit distribution (loss covering) Komisja Papierów Wartościowych i Giełd 11

12 CASH FLOW STATEMENT... quarter... to to quarter... to to A. Operating cash flow - indirect method I. Net profit (loss) II. Total adjustments Share of net profit (loss) of subsidiaries priced by - - equity accounting 2. Depreciation Foreign exchange (profit) loss Interest and profit sharing (dividend) (Profit) loss on investment activities Change in reserves Change in debt securities Change in dues the financial sector Change in dues the non-financial and public sector 10. Change in receivables securities bought under repurchase agreements 11. Change in shares, other securities and financial assets Change in dues to the financial sector Change in dues to the non-financial and public sector 14. Change in liabilities securities sold under repurchase agreements Change in liabilities securities 16. Change in other liabilities Change in accrued costs Change in deferred income and suspended items Other adjustments III. Net operating cash flow (I+/-II) - indirect method B. Cash flow investment activities I. Income Sales of subsidiaries' shares Sales of shares of inter-related companies Sales of shares of affiliated companies Sales of shares of other companies, other securities and financial assets Sales of intangible and tangible fixed assets Sales of investments in real-estate and intangible assets 7. Other investment income II. Expense Purchase of shares of subsidiaries Purchase of shares of inter-related companies Purchase of shares of affiliated companies Purchase of other shares, securities and financial assets 5. Purchase of intangible assets and tangible fixed assets Investment in real estate and intangible assets Other investment expense III. Net cash flow investment activities (I-II) Komisja Papierów Wartościowych i Giełd 12

13 C. Cash flow financing activities I. Income Long-term loans banks Long-term loans other financial institutions Issues of debt securities Increase in subordinated loans - - capital payments Other financing income II. Expense Repayment of long-term loans extended by banks Repayment of long-term loans extended by other financial institutions Debt securities redemption On account of other financial liabilities Financial leasing rent payment Decrease in subordinated debt Dividend and other payments to shareholders Profit distribution expense other than payments to - - shareholders 9. Own share buy-back Other financial expense III. Net cash flow financing activities (I-II) D. Total net cash flow (A.III+/-B.III+/-C.III) E. Balance-sheet change in cash, including: change in cash related to foreign exchange differences F. Cash at beginning of period G. Cash at period end (F+/- D), including: limited availability cash Komisja Papierów Wartościowych i Giełd 13

14 PRINCIPLES ADOPTED IN PREPARATION OF THE CONSOLIDATED QUARTERLY REPORT The Consolidated Report for Q is based on the continuous consolidation documentation involving principles and methods of accounting. That included asset and liabilities assessment and financial result measurement as at the balance-sheet date. The Consolidated Report includes the balance sheet, profit and loss account, summary of equity changes and a cash flow statement. Detailed description of the principles of accounting was presented in the annual report as at 31 December 2001, and published on 24 April NEW PRINCIPLES OF ACCOUNTING AS OF 1 JANUARY New principles of accounting adopted on 1 January 2002 r. are based on the following applicable acts and regulations: Accounting Law of 29 September 1994 as last amended on 9 November 2001 (Official Journal of Laws, Dz. U. No. 113, item 1186); Ordinance of the Ministry of Finance of 10 December 2001 laying down detailed principles of accounting in banking (Official Journal of Laws, Dz. U. No. 149, item 1673); Ordinance of the Ministry of Finance of 12 December 2001 on the principles of consolidated financial reporting in banking and consolidated reporting of financial holdings (Official Journal of Laws, Dz. U. No. 152, item 1728); Ordinance of the Ministry of Finance of 10 December 2001 on principles of risk provisioning in banking (Official Journal of Laws, Dz. U. No. 149, item 1672); Ordinance of the Ministry of Finance of 12 December 2001 laying down a model chart of accounts for banks (Official Journal of Laws, Dz.U. No. 152, item 1727); Ordinance of the Ministry of Finance of 12 December 2001 on detailed principles of crediting, methods of valuation, scope of disclosure and presentation of financial instruments (Official Journal of Laws, Dz. U. No. 149, item 1674); The following basic accounting principles are used in the ledgers: going concern concept, concept, commensurability concept, prudence concept, continuity concept. 2. The regulatory changes have the following particular results: 2.1. A new financial asset breakdown has been introduced with four categories. It has a bearing on the presentation of the financial statement and on the valuation of each asset category. Asset category Valuation method Asset Category Tradable assets (as well as liabilities) the category of these assets cannot be changed Granted credits and own loans and claims Assets kept till their maturity date these assets cannot be sold nor transferred to another category Marketable assets Valuation Method Valuation based on fair value, and its effects are recognised respectively in costs or revenues financial operations. Prior to the changes in regulations, only decreases in asset value due to valuation were recorded. Valuation based on depreciated cost Valuation based on depreciated cost Valuation based on fair value, and its effects are recognised respectively in costs or revenues financial operations.

15 The new accounting policy involves the application of the effective interest rate to the pricing by the depreciated cost of loans granted and taken, assets kept until maturity, financial liabilities not intended for trading, nonderivative instruments and for the settlement of revenues debt securities. In practice, however, in the face of the need for deep systemic changes necessary to implement effective interest rate-based pricing, the policy is not currently applied. Shares and interest in subsidiaries are priced under the ownership rights method. In the past the purchase price was used corrected for depreciation under durable reduction in value. Financial assets whose credible fair price cannot be determined are priced according to the depreciated cost (e.g. stakes in housing co-operatives). The impact of the new accounting policy on GBG SA is shown in April 2002 in the opening balance sheet of own assets as at 1 January 2002, under the result of previous periods (excluding capitalised interest under performing loans). As a result of the modified principles of valuation of securities, shares and interests in subsidiaries, the result of BPH PBK SA in previous periods has been increased by PLN 94,624,000 and increased by PLN 39,260,000. At GBG SA, the new method of securities valuation resulted in adding PLN 2,917,000 and deducting PLN 1,350,000 the result of previous periods Under the new policy, interest on watch category loans are shown as deferred income and booked as suspended interest until paid, just as interest under non performing loans. In the past, the watch-category interest was shown under the financial result. The result of the parent company under interest watchcategory loans was reduced by PLN 8,559,000. The corresponding correction in GBG SA resulted in a reduction by PLN 352, Capitalised interest performing loans, previously shown as suspended interest, have been included in the revenues and shown in the financial result. The result of previous periods under capitalised interest interest performing loans was increased by PLN 7,961,000. The equivalent correction under capitalised interest on loans taken will be reduced by PLN 8,000 once IT systems are modified accordingly. The corresponding correction in GBG SA resulted in an increase by PLN 28, The beginning of the year also saw a change in booking of exchange rate differences resulting the recalculation of the structural balances of currency positions, which were included in the financial result; the parent company s result previous periods was increased by PLN 385,000 and reduced by PLN 378,000. The consolidated company does not have any structural currency positions The following changes in the classification of fixed assets were introduced on 1 January 2002: - perpetual usufruct of land and the co-operative ownership title have been shifted intangible assets to fixed assets; - expenditure made on the organisation and further expansion of the company have been rebooked into the account; - in the profit and loss account, amortisation of goodwill is presented under other operating costs, while previously it was presented under depreciation costs; on 31 March 2002 it stood at PLN 14,613,000; - depreciation has been split into taxation and balance-sheet related; - a single write-down practice, as consumption of materials in the month when introduced to use, has been applied to objects matching the definition of fixed assets but worth PLN 1,000 or less. Pursuant to the Accountancy Law, provisions and assets under deferred corporate income tax and related to operations settled with own capital, have also a bearing on equity. The fiscal result of the changes made to the principles of booking exchange rate differences arising recalculation of structural currency positions balances caused a reduction at BPH PBK of benefits under deferred

16 corporate tax by PLN 108,000 but also an increase of those benefits into assets under the same tax by 106,000. As a result, taxable income was increased by PLN 2,000. Additionally, a provision charged to capital for jubilee bonuses and severance pay, calculated with the actuarial method, increased an amount charged into assets under deferred income tax by PLN 6,228,000. This amount will reduce the taxable income in the future periods. Selected items of assets and liabilities were converted into euros at the average central bank rate applicable on 31 March 2002, i.e. PLN (for comparable data: PLN ), while items of the Q1 profit and loss account and cash flow statement were converted at rate calculated as an average of the average NBP rates applicable on the last day of each of the three months of the first quarter in the 2002 accounting year, i.e. PLN (for comparable data PLN ). Structure of the BPH PBK SA Group Bank Przemysłowo-Handlowy PBK SA is the parent of the BPH PBK SA Group. The Q Consolidated Financial Report includes Górnośląski Bank Gospodarczy SA w Katowicach. Full method consolidation was applied. Subsidiaries and associated companies listed below have not been consolidated to the extent permitted by the Accounting Law (Art.58), in view of the insignificant magnitude of the selected financial data shown in financial statements of those companies in comparison to the values shown by Bank Przemysłowo-Handlowy PBK SA as at 31 March Company Parent company Bank Przemysłowo-Handlowy PBK SA* Share of equity Consolidated subsidiary Górnośląski Bank Gospodarczy SA w Katowicach Non-consolidated companies Subsidiaries PBK Leasing SA PBK Ochrona SA PBK Asset Management SA PBK Property Sp. z o. o PBK Inwestycje SA Dom Maklerski PBK SA PBK Doradztwo Finansowe Sp. z o. o PBK ATUT TFI SA HypoVereinsbank Bank Hipoteczny SA SBR Samopomoc Chłopska w Warszawie BPH Finance B.V Bankowe Towarzystwo Leasingowe SA Centrum Bankowości Bezpośredniej Sp. z o. o Międzybankowe Centrum Gotówki Sp. z o. o Centrum Promocji Inicjatyw Gospodarczych S.A.- ceased business operations Associate companies AKTYN Sp. z o. o TUnŻ Royal PBK S.A BA-CA Leasing Polska Sp. z o. o PolCard S.A Przedsiębiorstwo Produkcyjno-Usługowe Budpress Sp. z o. o. in liquidation

17 Polish Banking System S.A. in liquidation Indirect subsidiaries (GBG S.A. subsidiaries) GBG Serwis Sp. z o. o Górnośląskie Centrum Gospodarcze S.A. w Katowicach Indirect associates (GBG S.A. associates) Katowicki Hurt Towarowy S.A. w Katowicach DEVELOPMENTS AND RELATED EVENTS During Q1, BPH SA and PBK S.A. continued the process of adapting the structures of their respective groups to the circumstances and requirements that would arise after their merger. Consolidation of brokerage operations was an important component of this process. During Q1, the Board decided to merge Bank Przemysłowo-Handlowy PBK Spółka Akcyjna, which was carrying out brokerage business through the separated Biuro Maklerskie with Dom Maklerski PBK Spółka Akcyjna, Warszawa (company wholly owned by the Bank). To attain this goal, the Board adopted, on 26 March, a Merger Plan for the two companies, pursuant to Articles 498 and 499 of the Code of Commercial Companies. It envisaged the completion of the legal merger by the end of Q2. In pursuing its development strategy for the BPH PBK Group, the Bank injected equity into selected subsidiaries. On 25 January, the courts registered an increase of initial capital at PBK Doradztwo Finansowe Sp. z o.o. The resulting capital amounted to PLN 6,500,000 divided into 13,000 stakes worth PLN 500 each at face value and equivalent to 13,000 AGM votes. The company also registered its changed name, i.e. BPH PBK Doradztwo Finansowe Sp. z o. o. The Bank holds 100 per cent of BPH PBK Doradztwo Finansowe Sp. z o. o. The Bank was also working on its new strategy vis a vis the members of the BPH PBK Group. This involved a continuation of the review of strategies adopted by the major subsidiaries with the aim to align them with the objectives pursued by BPH PBK. The review will be followed by decisions on possible changes in the Group s composition to be effected by selling, integration or liquidation of certain companies. FACTORS AND EVENTS WITH A CONSIDERABLE IMPACT ON THE FINANCIAL PERFORMANCE The table below summarises interest revenues and expenses the BPH PBK Group, as at 31 March 2002, together with fx swap interest as compared to the previous corresponding period. PLN m 31 March March 2001 Revenues Expenses Net interest income Exchange position result adjusted for fx swap interest Net interest income, together with swap points stood at PLN m, i.e. close to the previous year s level. Interest margin on total assets was 4.3%. Fees and commissions income increased by 3.9%. This was chiefly a result of fees on payments and loans, as well as of a new table of fees and commissions introduced on 1 January Following the shift of the fx swap interest income, the result on the exchange rate position was lower than a year before, at PLN 22.2 m. The consolidated result on banking operations was 0.3 % higher than one year earlier.

18 Operating costs were slightly lower than 12 months before. The Bank made PLN 58.2-m provisions, as part of general costs, for costs that would be borne in the future and chiefly related to the restructuring process. During the period, the Group made PLN 36.6-m provisions more than in Q The largest items of the provisions were related to loans to large corporations. No significant changes occurred in the area of retail loans. In Q1 2002, the Group generated the consolidated gross profit of PLN 90.3 m (including the proportion of net profits of subsidiaries, assessed with the ownership rights principle); net profit stood at PLN 61.7 m, i.e % of the Q net profit. BPH PBK generated a gross profit of PLN 74.4 m (including the proportion of net profits of subsidiaries, assessed with the ownership rights principle); net profit stood at PLN 54.4 m. Loans and provisions The table below shows the Group s gross loan quality structure as at 31 March 2002, compared to 31 December Loan category Value in PLN m Structure in % Value in PLN m Structure in % as at 31 Mar as at 31 Dec Performing watch Non-performing including: Substandard Doubtful Loss TOTAL The provisions to loans ratio improved 8% at the end of 2001 to 8.5% at the end of Q1. Balance sheet At the end of March 2002, the balance sheet total was slightly lower than at the end of 2001, i.e. by 3.5%, but higher than at the end of Q On the liabilities side, interest obligations dropped by 5.7 % in comparison to the end of The reduction was true for obligations vis-à-vis both the financial and non-financial sectors, where the latter remained slightly higher than at the end of Q Payables to the public sector increased. On the assets side, there was a reduction in the receivables, principally the financial sector. The gross value of loans at the end of March stood at PLN 21.9 bn, i.e. was 0.5% higher than at he end of A tighter lending policy and the sales network reorganisation caused the slim growth in loans. Impact of the new Accounting Law On 1 January 2002, the BPH PBK Group showed on its ledgers the changes resulting the introduction of the newly amended Accounting Law. This resulted in a PLN 51.2-m increase in profits previous year as compared to the end of This was mainly caused by the pricing of shares and stakes, as well as securities, a change in the watch category interest and by capitalised interest re-classification.

19 A newly introduced rule whereby positive results of valuation of tradable assets are shown on the P&L account was a factor that contributed to the increased result on financial operations recorded by the BPH PBK Group (until then, the result on financial operations included the value of such assets up to their net purchase price). Depreciation write-downs was affected by the reduction in the unit value of objects meeting the definition of a fixed asset and written down into the consumption of materials in one go, as well as the shifting of the goodwill amortisation, PLN 14.6 m, to the other operating expenses. EVENTS AFTER THE QUARTERLY REPORT DATE WITH A POTENTIAL IMPACT FOR FUTURE FINANCIAL PERFORMANCE On 16 April, BPH PBK announced that the President issued Rules on procedures and duties of the Employer to the employees of BPH PBK SA in relation to the continued employment restructuring process during The Rules are a result of decisions taken following negotiations of the Employer with an overwhelming majority of trade union organisations active at the Bank. The protective measures adopted are equally beneficial to the employees, as the solutions applied by the two Banks during the course of their respective restructuring programmes before they were integrated. It was also decided that the employment restructuring process would involve a smaller number of staff than originally envisaged and would affect up to 2,300 persons by the end of Between 31 March and the publishing date, there were no events which might materially impact the Group s future results. ADJUSTMENT FOR PROVISIONS 1. Provisions and value update Provisions made and released in relation to the Group s operations during the first quarter of 2002 showed a negative balance at PLN 139,630,000. PLN 000 Q Write-downs for receivables, off-balance sheet liabilities -119,570 Updated value of financial assets -110 General risk provisions -19, , Provision for assets and deferred tax On 31 March 2002, deferred tax provisions stood at PLN 308,407,000 and assets stood at PLN 645,540,000. As compared to the end of previous year, the provision had increased by PLN 14,145,000 and assets by PLN 90,641,000. The change in the provision was mainly a result of the revenues collection and interest on securities higher by PLN 14,403,000. The main items, which contributed to the assets, were related to interest on financial instruments, increase by PLN 39,668,000, and specific provisioning and security increased by PLN 28,136,000. WRITE-DOWNS AND THE VALUE OF ASSETS The Bank classified under fixed assets and intangible assets items determined in accordance with the Accounting Law of 29 September 1994 (Official Journal of Laws, Dz. U. No 121, item 591 as amended). In Q1 2002, Bank Przemysłowo-Handlowy PBK SA made no write-downs that would update the value of fixed assets.