Results of BRE Bank Group Q1 2009

Transcription

1 Results of BRE Bank Group Q Management Board of BRE Bank Presentation for Investors and Analysts 29 April

2 Agenda BRE Bank Group Results Q BRE Bank Group: Quarter in Brief Analysis of the Consolidated Financial Results Risk Management & Funding Appendix Detailed Results of Business Lines, Q Additional Information: Selected Financial Data Macroeconomics Unless indicated otherwise, the presented financial data refer to the BRE Bank Group 2

3 Agenda BRE Bank Group Results Q BRE Bank Group: Quarter in Brief Analysis of the Consolidated Financial Results Risk Management & Funding Appendix Unless indicated otherwise, the presented financial data refer to the BRE Bank Group 3

4 Summary of Q in the BRE Bank Group 1 PLN 103 M of pre-tax profit in Q despite adverse market conditions 2 Risk provisions growth mainly due to derivatives, maintaining conservative approach 3 BREnova: revenue enhancement and cost optimisation well under way 4

5 Summary of Q in the BRE Bank Group Profitability of Business Continued and discontinued operations Profit before tax PLN M ROE before tax 10.4% Cost/Income (C/I) 53.4% Capital adequacy ratio (CAR) 10.26% 5

6 Summary of Q in the BRE Bank Group Results of the Business Lines Profitability of the Business Lines Profit before Tax by Business Line Q v. Q (PLN M) Corporates & Financial Markets Retail Banking (+PB) Corporates and Institutions Trading and Investment Activity -16.9% % / Q Q Change Q1 2009/Q

7 Summary of Q in the BRE Bank Group Development of Loans to Clients Growth of Gross Loans (PLN B) % QoQ Individual clients +8.0% % QoQ Corporate clients % QoQ 57.3 Other Structure of the Gross Loans Portfolio as at BRE Bank 80.5% BRE - Individual clients 51.3% BRE - Corporate clients 28.2% BRE - Public sector 0.1% BBH 7.9% BRE Leasing 7.9% BRE - others 0.9% Factoring companies* 3.7% Total lending up by 8% QoQ More focus on profitability doesn t mean no additional lending * Factoring companies: Polfactor, Intermarket Bank, Transfinance, Magyar Factor ** Based on management data Total lending up by 8% QoQ and 51.1% YoY (market: +5.4% QoQ and +34.4% YoY) Loans to retail clients up by 10.6% QoQ and 93.9% YoY (without the impact of PLN depreciation: 2.2% QoQ and 79.2% YoY**) Loans to corporate clients up by 6.2% QoQ and 22.2% YoY Share of loans to retail clients in total portfolio up to 51.5% (from 50.3% as of 12/2008) 7

8 Summary of Q in the BRE Bank Group Development of Deposit Base Development of Deposits (PLN B) % QoQ -6.5% % QoQ +0.3 x5 QoQ 35.3 Structure of Amounts Due to Clients as at BRE Bank 97.2% BRE - Individual clients 56.0% BRE - Public sector 1.0% BBH 0.6% Factoring companies* 0.7% Individual clients Corporate clients Other BRE - Corporate clients 40.2% DI BRE 1.5% Total deposits down by 6.5% QoQ Balances on current accounts remain stable Measured approach towards aggressive term deposit pricing * Factoring companies: Polfactor, Intermarket Bank,Transfinance, Magyar Factor Total deposits down by 6.5% QoQ and up by 5.1% YoY (market: +3.2% QoQ and +19.4% YoY) Decrease of deposits of corporate clients by 10.8% QoQ and 18.2% YoY Deposits of retail clients down by 4.6% QoQ and up by 31.9% YoY Total share of deposits of retail clients up to 56.9% (in 03/2009) from 55.8% (in 12/2008) 8

9 Summary of Q in the BRE Bank Group Development of Deposit Base: Balances on Current Accounts Balances on current accounts of BRE Banks customers stable in the long term Deposits on Current Accounts Corporate Clients Deposits on Current Accounts Retail Clients 3,0 12 2,5 10 2,0 8 1,5 1, ,5 2 0,0 Q Q Q Q Q Q Q Q Q Q Q Q 2009 Current accounts deposits remain stable in the long term; seasonal decline observed in first quarters Companies spend current surpluses on repayment of their own liabilities and are more sensitive to price which results in significantly higher fluctuation in term deposits account Balances on current accounts of BRE Retail clients remain stable Seasonal decrease observed in Q4 (Christmas spendings and outflow of funds to attractive term deposits available on the market) 9

10 BREnova Revenue Enhancement Major Achievements in Q Corporates & Markets Development of credit margin in corporate clients segment Major achievements to date Margin on total loan portfolio New pricing policy has already brought significant increase in credit margin in all client segments 2,0% 1,5% 1,0% 0,5% 0,0% +23.8% 3'2008 3'2009 Improvement in credit margins to corporate clients, increase by nearly 24% on the total credit portfolio Focus on intensive cross-sell on non-solvency products to increase client value (new CRM) Product innovation in cash management/electronic banking: - Servicing and settling transactions performed by international clients thanks to integration of banking systems of CoBa and BRE Bank - Dedicated real cash pooling solution for subsidiaries making up client's capital group Launch of the CRM system in April 2009 (modules: files, contacts, deals, wallets and alerts) 10

11 BREnova Revenue Enhancement Major Achievements in Q Retail Banking Improvement in non-mortgage product penetration & sales Major achievements to date Total revenue Regular revenue Up-front revenue (mainly mortgage) Revenue per customer +9.7% +37% +53% -39% Q Q Number of current accounts (M) % 3.31 Poland Regular revenues growth attributable to intensified cross-selling activities addressing existing retail client base and continued growth of the customer base: - launched cooperation with Corporate Banking and external partners Changes in pricing model: average margins on new CHF mortgage loans sold in Q increased ca. 3 times as compared to Q New deposit products and innovative non-mortgage offer allowed for customer acquisition and better product penetration: - mbank added structured products to its offer (27 structured products) which resulted in record level of sales of these products by BRE Retail arm in Q Czech Republic and Slovakia Q Q Q Q Gradual diversification of the revenue mix and lower dependence on mortgage lending Introduced functionality of mbank's current accounts is identical to the functionality introduced in Poland 11

12 BREnova Cost Optimisation Major Achievements in Q All the planned cost reductions are under way Change of Total Overhead Costs YoY and QoQ (PLN M) % % ' '2008 3'2009 Major achievements to date Investment and Resource Allocation Committee was established to monitor the process and decisions relating to costs Close ongoing monitoring of financial and operating indicators HR The initiative is carried out according to plan: staff reduction by 405 FTE Logistics & IT Downsizing of investment portfolio (IT, Logistics, etc.) by 30% Development of the branch network suspended, rent optimisation in selected outlets (Łódź) Reductions in costs: post expenses, mobile phones and company cars 12

13 Agenda BRE Bank Group Results Q BRE Bank Group: Quarter in Brief Analysis of the Consolidated Financial Results Risk Management & Funding Appendix Unless indicated otherwise, the presented financial data refer to the BRE Bank Group 13

14 Analysis of the Results, Q P&L of Continued Operations (PLN M) Q Q Change QoQ Total income* % Total cost (359.1) (472.4) 4) -24.0% Operating profit** % Net provisions (210.0) (130.5) +61.0% Profit before tax (9.1) -/+ Net profit*** 77.2 ( ) -/+ * Including net other operating income and cost ** Before provisions *** Net profit attributable to owners of the parent 14

15 Analysis of the Results, Q Income of BRE Bank Group up 13% BRE Bank Group Income Q v. Q (PLN M) +3.3% QoQ -5.3% QoQ +13.3% +98.7% QoQ % QoQ % QoQ 47.2 Double digit increase of Group income QoQ driven by: Steady increase of net interest income Q Net Interest Income Net Fee and Commission Income Net Trading Income Gains less Losses from Investment Securities Net Other Operating Income and Cost Q Sound trading income thanks to high volatility in FX markets and steady turnover in FX spot markets Structure of BRE Bank Group Income by Business Line, Q Corporates and Institutions; PLN 270 M; 40.1% Trading and Investment Activity; PLN 69 M; 10.2% Income of BRE.locum on the sale of appartments Other and Eliminations; PLN 27 M; 4.0% Retail Banking &PB; PLN 307 M; 45.7% 15

16 Analysis of the Results, Q Costs: Tight Management Shows Effects Overhead Costs (+Depreciation) of BRE Bank Group Q v. Q Costs PLN M Q Q Personnel costs Maintenance C/I Depreciation Other Cost Structure by Business Line at Trading and Invest-ment Activity; PLN 12 M; 3.4% -24.0% C/I % Retail Banking & PB; PLN 151 M; 42.1% C/I ratio* of regular operations down to 53.4% in Q Total overhead costs (incl. depreciation) in Q amounted to PLN 359 M, down 24.0% QoQ and up 3.5% YoY On a quarterly basis the decrease is related to: - effects of implementation of BREnova cost initiatives - reduction of personnel costs by 21.3% - decrease of material costs by 37.3% driven by lower marketing costs On YoY basis overhead costs (incl. depreciation) slightly up due to higher level of depreciation (up 28.6%) Corporates and Institutions PLN 185 M; 51.4% Other and Elimina-tions; PLN 11 M; 3.1% * Calculated for continued and discontinued operations net of one-offs. Incl. one-offs the ratio was: 55.1% in Q4 2008; no one-offs and discontinued operations in Q

17 Analysis of the Results, Q BRE Bank Group s Capital Adequacy Ratio at Target Level 90 Relation between Capital Adequacy Ratio (CAR) and Risk Weighted Assets (RWA) 12% Available growth in RWA as at (PLN B; LHS) RWA (PLN B; LHS) CAR (%; RHS) 80 11% 70 10% 60 9% 50 8% 40 7% 30 6% 20 5% 10 0 Q1 06 Q2 06 Q3 06 YE 06 Q1 07 Q2 07 Q3 07 YE 07 Q1 08 Q2 08 Q3 08 Q4 08 Q1 09 Basel I Basel II 4% 3% CAR at the safe level of 10.26% in March 2009 Change of the Capital Adequacy Ratio (CAR) under Basel II +56 bps 10.04% 10.26% Increase of consolidated own funds -34 bps RWA growth in Q Consolidated risk-weighted assets (RWA) up by PLN 2.0 B to PLN 60.9 B (+3.4% QoQ) in Q Consolidated CAR (under NCA) at 10.26% at vs % at and 9.48% at

18 Agenda BRE Bank Group Results Q BRE Bank Group: Year in Brief Analysis of the Consolidated Financial Results Risk Management & Funding Appendix Unless indicated otherwise, the presented financial data refer to the BRE Bank Group 18

19 Risk Management & Funding Structure of Loan Loss Provisions in Q Provisions reflect the overall economic situation downfall and derivative instruments crash Retail Banking Corporates & Financial Markets BRE Bank Group s Impairment Losses on Loans and Advances in Q vs. Q (PLN M) Q Corporates & Financial Markets 24.4 Retail Banking + PB Subsidiaries Other Q Retail Banking Corporates & Financial Markets Growth of LLP in Corporates and Financial Markets driven mainly by the impairment of customers with derivative exposures: -Total negative impact at PLN 70.2 M -Only 19 customers in restructuring process Higher provisions of Retail Banking caused predominantly by the non-mortgage portfolio Measures taken to significantly improve the quality of the non-mortgage portfolio The quality of the mortgage portfolio is significantly better than for the peer group and only moderate deterioration is expected, without significant impact on LLPs 19

20 Risk Management & Funding FX Mortgage Loans: Development of Loan Installment A significant depreciation of PLN in the period August 2008 April 2009 was amortized by decrease of CHF interest rates LIBOR CHF 3M 3,5 3,0 2,5 LIBOR CHF 3M % 2,0 1,5 1,0 0,5 CHF/PLN 0, CHF/PLN ,4 3,2 3,0 2,8 2,6 2,4 2,2 2,0 1,8 CHF appreciation of 47%; LIBOR CHF decrease by 86% Consequently, the typical loan installment* of CHF mortgage loan increased by ca. 9% PLN 1,508 Interest: PLN % PLN 1,639 Interest: PLN 842 Capital: PLN 544 Capital PLN 797 * Assumption: loan amount CHF; decreasing installment system; loan term 30 years 20

21 Risk Management & Funding Loan to Deposit Ratio The ratio of loans to deposits stands at 159.1%. However, funding policy for FX risk mitigation is implemented. BRE mid-term loans in CHF fund CHF-denominated mortgages, therefore......the actual ratio of loans funded from deposits is 93.2% LtD Ratio in BRE Bank Group at Structure of Financing Loans of the BRE Bank Group at (PLN B) % 93.2% BRE: Mortgage loans in CHF BBH Loans Loans from banks in CHF Subordinated debt in CHF Mortgage bonds 20 Other loans Deposits Loans Sources of financing L/D - balance sheet L/D - actual ratio 21

22 Risk Management & Funding Maturity of Long- and Midterm FX Loans by 2010 By the end of 2010 BRE Bank will need to refinance PLN 4.6 B of long- and mid-term loans drawn in the past to fund FX lending. This means that... Maturity of Long- and Mid-term FX Loans by 2010 (PLN B) mid-term we will need to refinance ca. 20% of the outstanding balance of long- and mid-term loans 0 Total LT funding as at 31 March 2009 by the end of repayments 22

23 Summary of Q Revenues up, costs down 2 High risk provisions but main risk aspects under control 3 BREnova: continued focus on initiatives, more impact to be seen in next quarters 23

24 Agenda BRE Bank Group Results Q BRE Bank Group: Year in Brief Analysis of the Consolidated Financial Results Funding & Risk Management Appendix Detailed Results of Business Lines, Q Additional Information: Selected Financial Data Macroeconomics Unless indicated otherwise, the presented financial data refer to the BRE Bank Group 24

25 Detailed Results of the Business Lines slides No Slide No. Additional Information: Selected Financial Data slides No BRE Bank Retail Banking P&L acc. to IFRS 43 Summary of Q Results of Strategic Subsidiaries 44 Customer Acquisition & Volume Trends 28 Interest Income 45 Retail Deposits and Loans: Market Share 30 Commission Income 46 Mortgage Loans: Portfolio Structure & Quality 31 Trading Income 47 Growth of Sales 32 Overhead Costs Structure 48 Corporates & Financial Markets Loans and Deposits 49 Summary of Q Balance Sheet Analysis - Assets 50 Corporates & Institutions: Clients, Loans and Deposits 35 Balance Sheet Analysis - Liabilities 51 Loans and Deposits: Market Share 36 Capital Adequacy Ratio under NCA 52 Leasing and Factoring 37 Loan Provisions & Quality of the Portfolio 53 BRE Bank Hipoteczny (mortgage bank) 38 Structure of BRE Bank s Risk Portfolio 54 Dom Inwestycyjny BRE Banku (BRE Securities) 39 Change of PD vs. portfolio provisions 55 Proprietary Investments Portfolio 40 Trading and Investment Activity: Market Share 41 Slide No. 25

26 Detailed Results of the Business Lines, Q Retail Banking 26

27 BRE Bank Retail Banking (+PB): Summary of Q1 2009: Financial Results Structure of the Profit before Tax of Retail Banking in Q (PLN M) MultiBank; 45.4 mbank*; 24.6 Other; 2.3 PB; 1.7 Profit before Tax of the Segment (by quarter, PLN M) Q1 06 Q2 06 Q3 06 Q4 06 Q1 07 Q2 07 Q3 07 Q4 07 Q1 08 Q2 08 Q3 08 Q4 08 Q *mbank s profit before tax including mbank s loss in Czech Rep. and Slovakia at PLN -24,5 M mbank Cz & SK Retail Banking In Q Retail Banking achieved a pre-tax profit of PLN 74.0 million Line s contribution to the BRE Bank Group results: 71.6% to the pre-tax profit (v. 16.3% in Q1 2008) 61.6% to the net interest income 18.9% to the total net commission income The strong growth of the Line s income (+37% YoY) coupled with a lower growth in administrative costs (by only 7.5% YoY) High growth of net interest income (+28.7% QoQ), slight decline of net commission income (-6.1% QoQ) Structure of the Profit before Tax of the Segment in Q (PLN M) Net interest income 23.0 Net commission income 32.0 Trading income Net provisions Costs and depreciation Net other operating income and cost Profit before tax 27

28 BRE Bank Retail Banking (Poland): Customer Acquisition and Volume Trends (M) 4,00 3,00 At the end of Q End of Q Change End of Q M clients +4.1% +4.1% 2.6 M 2,00 1,00 0,00 Customers Accounts 3.2 M accounts +4.7% +4.7% 3.3 M (PLN B) mbank (Poland) MultiBank 15.3 B deposits (PLN) -6.9% -6.9% 14.3 B B loans (PLN) +11.7% +11.7% 28.0 B B Incl.: +10.7% mortgage (PLNł) +10.7% 23.2 B 0 Deposits Loans 28

29 BRE Bank Retail Banking (CZ/SK): Customer Acquisition and Volume Trends (thou.) 600 Data as at the end of Q End of Q Change End of Q thou. clients +20.4% +20.4% thou Clients Accounts thou. accounts +35.3% +35.3% thou. (EUR M) (EUR M) M deposits (EUR) +2.5% +2.5% M Deposits 50 0 Loans M loans (EUR) +19.1% +19.1% M Czech R. Slovakia 29

30 BRE Bank Retail Banking: Deposits & Loans: Market Share BRE Retail Deposits and Investment Funds (PLN B) March 2009: 3.6% BRE Retail Loans (PLN B) March 2009: 7.1% 20 17, ,5 10 7,5 5 2,5 0 Jan 1.3% 1.7% 2.1% 2.6% 3.1% 4.0% 1.2% 2.1% 3.0% 4.5% 5.2% 6.8% , Jun Dec Jun Dec Jun Dec Jun Dec Jun Dec Jun Dec Feb , , , , , Jan Jun Dec Jun Dec Jun Dec Jun Dec Jun Dec Jun Dec Feb BRE Bank (LHS) Market (RHS) Market share (as at the end of period) 30

31 BRE Bank Retail Banking: Mortgage Loans: Portfolio Structure and Quality BRE Bank s Mortgage Loans Portfolio (Retail Banking loans to individuals) Structure of the Retail Banking Loans Portfolio (Household Loans) at Total PLN FX 5% 9% 2% Balance-sheet value (PLN B) Average maturity (years) Average value (PLN thou.) Average LTV (%) % Mortgage Loans Credit Cards Credit Lines Other NPL (%) As at Currency Structure of the Retail Banking Mortgage Loans Portfolio (Household Loans) at % FX PLN 90% 31

32 BRE Bank Retail Banking: Net Sales by Quarters mbank Clients (thou.) Deposits (PLN M) Loans (PLN M) +4.1% -4.1% +12.0% Q1 08 Q2 08 Q3 08 Q Q Q1 08 Q2 08 Q3 08 Q Q IQ1 08 Q2 08 Q3 08 Q Q MultiBank Clients (thou.) Deposits (PLN M) Loans (PLN M) +3.9% -13.8% +11.5% Q1 08 Q2 08 Q3 08 Q Q Q1 08 Q2 08 Q3 08 Q Q Q1 08 Q2 08 Q3 08 Q Q Balance Change 32

33 Detailed Results of the Business Lines, Q Corporates & Financial Markets 33

34 Corporates and Financial Markets: Summary of Q1 2009: Financial Results Financial Results of the Segment, Q (PLN M) Net interest income 89.0 Net commission income 91.1 Trading income Income on investment securities Net provisions Costs and depreciation 11.9 Net other operating income and cost 14.0 Profit before tax Segment s profit before tax at PLN 14.0 million in Q Segment s contribution to the profit before tax of the BRE Bank Group at 13.6% Significant impact of provisions (PLN M) on Segment s profit, particularly provisions related to derivative transactions (PLN 70.2 M) Modest QoQ increase of total income of the Segment, mainly in trading income Increased contribution of subsidiaries to the Segment s profit (44%) due to lower profit generated by the Bank Profit before Tax by Quarter (PLN M) ** Structure of Profit before Tax in Q (PLN M) ,0* Q Q Q Q Vectra Q Q Q Q Q K K2-1.6 K3-7.3 Financial Institutions 16.9 Risk & liquidity mgt Financial Markets 6.1 Subsidiaries -9.7 Others * Sale of shares of Mostostal Zabrze ** Repayment of default loan 34

35 Corporates and Institutions: Customer Acquisition and Volume Trends Corporate Deposits (PLN B) Q Change corporate clients +5.2% +5.2% Q B corporate loans (PLN) +22.2% +22.2% 26.6 B Q Q Corporate Loans (PLN B) 12.8 B thereof loans for enterprises (PLN) +21.1% +21.1% 15.5 B B corporate deposits (PLN) -18.2% -18.2% 14.8 B Q Q B thereof deposits of enterprises (PLN) -1.8% -1.8% B Enterprises 35

36 Corporates and Institutions: Loans and Deposits Market Share 12% 10% 8% 6% 4% BRE Bank s Market Share in Corporate* Loans and Deposits January 2005 March 2008 Jan-05 Mar-05 May-05 Jul-05 Sep-05 Nov-05 Jan-06 Mar-06 May-06 Jul-06 Sep-06 Nov-06 Jan-07 Mar-07 May-07 Jul-07 Sep-07 Nov-07 Jan-08 Mar-08 May-08 Jul-08 Sep-08 N ov-08 Jan-09 Mar-09 Source: NBP reports Coprorate deposits Corporate loans PLN B of corporate* deposits in BRE Bank at the end of Q (down by 1.8% YoY) A fall of deposits in Q (QoQ) resulted mainly from one-off transaction - allocation of deposit for the redemption of own bonds for the amount of PLN 0.9 B by a BRE Bank customer PLN 15.5 B of corporate* loans in BRE Bank at the end of Q (up by 21.1% YoY) 8.6% 8.6% 6.5% 6.5% Corporate* Deposits Volume (BRE Bank only, PLN B) Dec-06. Mar-07. Jun-07. Sept-07. Dec-07. Mar-08. Jun-08. Sept-08. Dec-08. Mar-09. Corporate* Loans Volume (BRE Bank only, PLN B) Dec-06. Mar-07. Jun-07. Sept-07. Dec-07. Mar-08. Jun-08. Sept-08. Dec-08. Mar-09. * Enterprises (according to WEBIS reporting system to the NBP) include only state, private and co-operative companies 36

37 Corporates and Institutions: Leasing and Factoring BRE Leasing PLN 4.8 M of pre-tax profit in Q Q pre-tax profit was 54.2% lower than in Q (due to lower sales and necessity to create impairment provisions related to economic slowdown) Leasing contracts written in Q at a total of PLN 402 M, down by 56.9% QoQ and 49.0% YoY Drop of sales in Q1 results from lower demand for leasing services Intermarket Group Intermarket Group companies* reported pre-tax loss of PLN M in Q related to net impairment of EUR 3.7 M for its Romanian subsidiary (Compania de Factoring IFN) Pre-tax profit of Polfactor at PLN 2.5 M (-18.0% YoY) under influence of higher impairment losses in connection with economic slowdown Intermarket Group companies sales at EUR 1.1 B in Q1 2009, down by 17.0% YoY. A decrease in the amount of purchased invoices is due to lower activity of customers of factoring companies Polfactor sales at PLN 782 M in Q (+0.9% YoY) Value of BRE Leasing Contracts (PLN M) Sales of Intermarket Group Companies (by quarters, EUR B) -56.9% -24.0% Q Q Q Q Q *companies consolidated by BRE Bank: Intermarket Bank AG, Transfinance a.s., Polfactor S.A. and Magyar Factor zrt. 37

38 Corporates and Institutions: BRE Bank Hipoteczny (BBH) Loans Portfolio (PLN M) Balance-sheet Exposure Profit before Tax (PLN M) % Q Q Commercial Loans Local Government Loans Housing Loans BBH s total balance-sheet and off-balance-sheet loans portfolio reached PLN 5.2 B at the end of Q1 2009, up by 20.1% YoY Without the impact of PLN depreciation the portfolio would have decreased by 2% QoQ BBH s profit before tax reached PLN 10.3 M at the end of Q1 2009, compared to PLN 11.4 M in Q ROE ratio equaled to 13.2% in Q in comparison to 16.9% in Q C/I ratio decreased from 45.3% in Q to 44.1% in Q Provisions for the end of Q amounted to PLN M in comparison to PLN 9.04 M at the end of Q1 2008; at the end of March 2009 the value of LLP increased by PLN 0.83 M or 7.4% in comparison to the end of 2008 *As of July 2004 Bank Hipoteczny stopped granting loans to retail customers. Thevolumeofhousingloansrepresentstheexisting portfolio still managed by the Bank 38

39 Corporates and Institutions: Dom Inwestycyjny BRE Banku (DI BRE) Profit before tax at PLN 5.1 M in Q compared to PLN 10.5 M in Q (annualised ROE in Q1 2009: 57%) Strengthening of the market position in all segments of capital market Continuous growth of the number of clients: thou. accounts at the end of Q compared to thou. in 2008 DI BRE Research Team was ranked No.1 by Financial Daily Parkiet in the Stock Analysts Ranking 2008 AQ research recognized DI BRE Research Team the best in Poland in 2008 Number of Accounts with DI BRE - End of Q (thousand) DI BRE accounts 22.1 ebroker (mbank) Brokerage Service (MultiBank) 18.7 TOTAL DI BRE Market Share Q1 2009, by volume* Equities 7.0% #6 Bonds 5.6% #4 Futures 14.7% #2 Options 32.2% #1 * Calculations based on WSE, DI data DI BRE Equities Trading PLN M DI BRE Market Share in WSE Trading Equities Futures Options ebroker & MultiBank brokerage services trading Direct trading via DI BRE 5.4% 7.0% 11.8% 14.7% 28.5% 32.2% Q Q Q Q Q Q Q Q

40 Corporates and Institutions: Proprietary Investments Portfolio Major Equity Investments at Equity Stake PZU SA 0.76% Garbary Sp. z o.o % At the end of Q1 2009, value at cost of proprietary investments and mezzanine reached PLN 239 M Portfolio Value (PLN M) Incl.: PLN 95.1 M bonds* A decrease of the portfolio value by PLN 11.7 M compared to year-end 2008 is due to the sale of the Xtrade S.A. stake Value at cost Book value *Bonds issued due to mezzanine finance transactions 40

41 Trading and Investment Activity: Market Share BRE Bank s Market Share* in Investment Banking Services (BRE in navy blue) BRE Bank in the Market of Non-Treasury Debt** at (PLN M) 6.7% 19.4% Market BRE Bank Treasury Bills and Bonds IRS/FRA Short-term Debt Corporate Debt Bank Bonds 6.9% 15.0% 13.77% # % # % #1 FX Spot & Forward WIG20 Index Options * As at ; own calculations based on NBP and WSE figures ** After Fitch Polska S.A., Rating & Rynek, and own calculations 41

42 Additional Information: Selected Financial Data 42

43 Additional Information: Selected Financial Data Consolidated Profit and Loss Account under IFRS PLN 000 By quarter Q1 2008* Q2 2008* Q3 2008* Q4 2008* Q Net interest income Net commission income Dividend income Trading profit Income from investment securities (2 149) (16 606) Other operating income Net credit and loans impairment provisions (22 242) (45 626) (70 808) ( ) ( ) Overhead costs ( ) ( ) ( ) ( ) ( ) Depreciation/Amortisation (45 496) (48 456) (51 299) (58 224) (58 526) Other operating cost (77 888) (25 554) (16 542) (33 122) (43 003) Operating profit (9 148) Share in profits (losses) of associated companies Profit before tax (9 148) Net profit attributable to owners of the parent (18 871) * Quarterly data for continued operations, Q1-Q incl. impact of consolidation of BRE Ubezpieczenia (BRE Insurance) 43

44 Additional Information: Selected Financial Data Results of the Strategic Subsidiaries 34.1 Profit before Tax of Consolidated Subsidiaries (PLN M) Q profit before tax of strategic subsidiaries Q Q at PLN 30.8 M v. PLN 83.4 M in Q BRE.locum BRE Bank Hipoteczny Dom Inwestycyjny BRE Banku BRE Leasing Intermarket Bank Polfactor Transfinance Magyar Factor -5.3 BRE Ubezpieczenia Other -1.6 Contribution of BRE Bank Group Subsidiaries** to Profit before Tax in Q * Bank s profit before tax net of consolidation adjustments ** Corporates and Financial Markets segment embraces: BRE Bank Hipoteczny, Dom Inwestycyjny BRE Banku, BRE Leasing, Intermarket Bank, Polfactor, Transfinance, Magyar Factor, BRE Corporate Finance, BRE Holding, Garbary, Tele-Tech Investment, BRE Finance France Retail Banking embraces: BRE Ubezpieczenia, BRE Wealth Management, emfinanse Companies out of the segment: BRE.locum, CERI Bank* 70.2% Subsidiaries** 29.8% Subsidiaries out of segments 18.0% Subsidiaries of Corporates & Markets Segment 5.9% Subsidiaries of Retail Banking Segment 5.9% 44

45 Additional Information: Selected Financial Data Net Interest Income & Margin Interest Income Structure (by quarter, consolidated data, PLN M) Net Interest Income, Q by Business Line (PLN M) Other Debt securities held for trading Advances and loans Investment securities % +3.3% Q1 08 Q2 08 Q3 08 Q4 08 Q1 09 Cash and short-term deposits Structure of Interest Income Q (%) Loans and Advances 74% Debt Securities 5% Other 1% Cash and Short-term Funds 8% Investment Securities 12% *Margin in the BRE Bank Group calculated as net interest income to average income-earning assets Net Interest Retail Banking Income in Q4 & PB 2008 Corporates & Institutions Net Interest Margin (NIM, %)* Trading and Investment Activity Corporates & Financial Markets Other and Eliminations Net Interest Income in Q Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q Increase of net interest income mainly due to Retail Banking 45

46 Additional Information: Selected Financial Data Commission Income Net Commission Income, Q by Business Line (PLN M) -5.3% -5.3% Structure of Net Commission Income Q (%) Guarantees and trade finance commissions and fees 5% Other* 10% Brokerage fees 9% Client's accounts and money transfers 17% Payment cards 29% Credit related fees and commissions 24% Commission Income Structure (consolidated data, PLN M) Commissions from insurance activity 6% Other Net Commission Income in Q Retail Banking & PB Corporates & Institutions Trading and Investment Activity Corporates & Financial Markets Other and Eliminations Net Commission Income in Q Decline of net commission income mainly due to lower origination of Retail FX-mortgage loans Q1 08 Q2 08 Q3 08 Q4 08 Q1 09 Transfers Brokerage Payment cards Guarantees and documentary transactions Portfolio management Lending 46

47 Additional Information: Selected Financial Data Trading Income Net Trading Income (by quarters, consolidated data, PLN M) Q Q Q Q Q K1 K2 K3 Others Risk&Liquidity Financial Markets Retail Banking Trading Income Structure (%) Q Trading Income generated predominantly by customer-driven transactions Transactions with customers Risk & Liquidity Q Q Q Financial Markets Q % 0% 20% 40% 60% 80% 100% 47

48 Additional Information: Selected Financial Data Administrative Expenses Structure Structure of Administrative Expenses (+Depreciation) (by quarter, PLN M, consolidated data) C/I Ratio of BRE Bank Group* (%) Q Q Q Q Q Personnel costs Maintaince Depreciation Other * Calculated for continued and discontinued operations net of one-offs. Incl. one-offs the ratio was: 49% in Q1 2007, 53.4% in Q2 2007, 53.7% in Q3 2007, 55.5% in Q4 2007, 44.1% in Q1 2008, 48.3% in Q2 2008,49.7% in Q and 55.1% in Q4 2008; No one-offs and discontinued operations in Q

49 Additional Information: Selected Financial Data Loans and Deposits in Q Loans (PLN B, net) Deposits (PLN B) +50.8% +5.1% % +9% +20% +8% +8% +5% -1% -6% Credit portfolio growth much above the market average YoY (+50.8% YoY, market: % YoY), driven by retail (+93.9% YoY) and corporate loans (+22.2% YoY) QoQ growth of credit portfolio also above the market average (+7.7% QoQ, market: +5.4% QoQ), mainly driven by retail loans (+10.6% QoQ and influenced by PLN depreciation) Deposits growth below the market average YoY (BRE Bank: +5.1% YoY vs. market: +19.4% YoY), due to falling corporate deposits (-18.2% YoY) and increasing retail deposits (+31.9% YoY) QoQ drop of deposits in BRE Bank Group (-6.5% QoQ vs. market: +3.2% QoQ) as a result of drop in both corporate (-10.8% QoQ) and retail (-4.6% QoQ) deposits in Q

50 Additional Information: Selected Financial Data Balance Sheet Analysis: Assets Structure of Assets (PLN B) Loans and Advances to Customers* - Portfolio by Customer Category (PLN B) % 8% 5% 4% 7% 10% % 6% 8% 4% 5% 7% % 4% 7% 3% 6% 10% % 4% 7% 7% 6% 7% % 3% 8% 6% 2% 5% % 41% % 43% % 45% % 51% % 52% % % % % % % % % % % Loans and advances to customers Trading securities Investment securities Other Amounts due from banks Derivative financial instruments Assets under pledge Public sector Retail Corporate *Gross loans and advances to customers (excl. other advances ) 50

51 Additional Information: Selected Financial Data Balance Sheet Analysis: Liabilities Structure of Liabilities (PLN B) Structure of Deposits (PLN B) % 4% 6% 24% % 6% 3% 26% ,9 6% 8% 3% 27% % 5% 2% 33% % 5% 2% 35% % 54% % 52% % 51% % 44% % 42% % % 38,1 56% % % % % % % % Other Equity (total) Debt securities in issue Liabilities to other banks Liabilities to customers Public sector Corporate Retail 51

52 Additional Information: Selected Financial Data Capital Adequacy Ratio Capital Adequacy Ratio under NCA Capital Requirement (PLN M) Basel I Basel II Q Basel II Q Basel II Credit risk Market risk Operational risk Other risks Total capital requirement CAR (%)

53 Additional Information: Selected Financial Data Credit Provisions Net Credit and Loans Impairment Provisions (consolidated data, PLN M) BRE Bank Portfolio Quality (%) , , ,6 3,2 2,8 2, ,8 3,5 2,5 2,2 3,4 2,7 3 2,9 2,5 2,5 3 2,3 3,5 3 2, Q Q Q Q Q Q Q Q Q Q Q Q Q ,6 1,2 0,8 0,4 0 Q NPL acc. to PAS (LHS)* Default acc. to IAS (RHS) Q Q Q Q ,9 Q ,5 Q ,4 Q ,4 Q ,4 Q ,6 Q Q ,5 1 0,5 0 *For comparability calculated on the balance-sheet and off-balance sheet portfolio 53

54 Additional Information: Selected Financial Data Structure of BRE Bank s Risk Portfolio 100% 80% 60% 5.6% 5.5% 4.8% 4.4% 4.6% 3.6% 3.6% 3.4% 2.8% 2.8% 3.4% Quality of the Loans and Default Portfolios NPLs under NBP rating (balance-sheet NPLs to total loans) 40% 75% 73% 73% 76% 81% 73% 70% 68% 68% 57% 51% Specific provisions to the default portfolio 20% 0% Non-default Default PLN M % share % share % share Default Non-default TOTAL Structure of the Default Portfolio 54

55 PLN M Appendix Additional Infomration: Average PD and Portfolio Provisions Change of average PD in the credit portfolio v. portfolio provisions 0,60% 0,50% Retail Portfolio 0,40% Loans Portfolio excluding Retail Portfolio 180 1,2% 160 0,88% 0,88% 0,94% 0,91% 0,95% 0,91% 0,96% 1,03% 1,01% 0,99% 1,03% 1,01% 1,03% 1,01% 1,02% 1,01% 1,03% 1,01% 1,03% 1,02% 1,03% 1,07% 1,05% 1,06% 1,0% ,8% 100 0,6% ,4% 40 0,2% 20 Average exposure-weighted PD, % (LHS) 0 Portfolio provisions in PLN (RHS) 0,0% Apr-07 May-07 Jun-07 Jul-07 Aug-07 Sep-07 Oct-07 Nov-07 Dec-07 Jan-08 Feb-08 Mar-08 Apr-08 May-08 Jun-08 Jul-08 Aug-08 Sep-08 Oct-08 Nov-08 Dec-08 Jan-09 Feb-09 Mar-09 0,150% 0,196% 0,198% 0,201% 0,196% 0,194% 0,193% 0,176% 0,182% 0,193% 0,194% 0,190% 0,196% 0,191% 0,190% 0,195% 0,227% 0,234% 0,237% 0,233% 0,246% 0,224% 0,226% 0,281% 0,263% 0,267% 0,257% 0,271% 0,269% 0,259% 0,295% 0,314% 0,291% 0,323% 0,302% 0,321% 0,366% 0,360% 0,397% 0,30% 0,20% 0,10% 0,00% PLN thou

56 Contact BRE Bank s Investor Relations Officers at your service: Joanna Filipkowska Head of Investor Relations or Agnieszka Solarz Investor Relations Direct dial: Secretariat: Fax: joanna.filipkowska@brebank.pl Direct dial: Fax: agnieszka.solarzjedrych@brebank.pl Visit our Investor Relations website: 56