ING Bank Śląski S.A. Financial Results for 4Q Warsaw 20 February

Transcription

1 ING Bank Śląski S.A. Financial Results for 4Q 2007 Warsaw 20 February

2 Information for investors Some statements contained in this presentation represent future predictions and forecasts. Such statements are based on the current views and assumptions of the Bank Management Board and they incorporate known and unknown types of risk and some degree of uncertainty. The actual results, achievements and occurrences may considerably vary from the data presented in these statements due to such elements as: (I) the general economic conditions, (II) the FM results (III), the frequency and severity of insured loss cases, (IV) the level and trends of the mortality and incidence rate, (V) the duration of specific conditions, (VI) the interest rates, (VII) the FX rates, (VIII) general competitive factors, (IX) amendments to laws and regulations, and (X) changes in the policy of the government and/or statutory authorities. ING Bank Śląski shall not assume the obligation of updating any items of information being speculations as to the future, presented herein. 2

3 Table of contents 1. Introduction to financial results and market position of the Bank 2. Business development 3. Financial results for 4Q

4 Strategic targets of ING Bank Śląski - consistent execution of strategic targets in 2007 Acquisition of new clients and increase of volumes: Lending products sales intensification: Increase of funds entrusted by retail clients in 2007 by PLN 6.4 billion (+22%) Increase of OKO saving accounts volume by over PLN 3.6 billion y/y (+24%) Increase of TFI assets entrusted by retail clients by over PLN 1.8 billion y/y (+32%) Increase of retail clients current accounts volume by PLN 787 billion y/y (+24%) Increase of wholesale strategic clients deposits volume by over PLN 2.7 billion y/y (+40%) Increase of wholesale network clients deposits volume by PLN 531 million y/y (+7%) Increase of number of retail clients by 218,000 y/y (+11%) Increase of number of wholesale clients by 555 y/y (+5%) Total lending exposure growth by PLN 3.4 billion in 2007 vs. PLN 3.1 billion in 2006 Increase of retail clients lending portfolio by over PLN 1.3 billion y/y (+41%) and wholesale clients lending portfolio by over PLN 2.0 billion y/y (+19%) Increase of PLN-denominated mortgage loans volume by PLN 1.2 billion y/y (+105%) resulting from increase of mortgage loans new sales volume 98% y/y Increase of consumer loans volume by PLN 138 million y/y (+116%) Increase of credit cards number by 109,000 y/y (+72%) and limit usage by PLN 64 million y/y (+32%) Increase of wholesale strategic clients loans volume by PLN 800 million y/y (+14%) Increase of wholesale network clients loans volume by over PLN 1.2 billion y/y (+25%) Increase of ABL agreements signed volume by PLN 473 million y/y (+165%) 4

5 Strategic targets of ING Bank Śląski - consistent execution of strategic targets in 2007 Maintaining high quality of customer service: Development of simple and honest product offer: Translation of business activities into Bank s financial results: Maintaining a high level of satisfaction among retail clients Substantial increase of the wholesale clients satisfaction level as compared to 2006 significantly improving market position of ING Bank Śląski Implementation of Front-End & SOWK applications Preparation of w new internet banking application for corporate clients: ING BusinessOnLine Improvement of the ING BankOnLine application dedicated to retail clients Implementation of the chip-cards technology first cards with microprocessor issued Implementation of the Loan Xpress application for financial intermediaries Improvement of mortgage loans product offer for retail clients New consumer loans offer for retail clients Preparation of new internet current account for retail clients: Direct Current Account Enhancement of the product offer dedicated to Private Banking clients Money for start-ups! a new offer for small business New Euro-transfers offer for wholesale clients Result before cost risk higher by 16.6% as compared to the previous year Increase of Bank s net profit by 6.7% y/y Significant income growth in both retail and corporate business lines Improvement of cost/income ratio at a stable level REINFORCEMENT OF MARKET POSITION and INCREASE OF SHAREHOLDER S VALUE 5

6 Major business achievements of the Bank - increase of core values in PLN million Change 2006/2005 Change 2007/2006 Total funds entrusted by retail clients * 22,280 28,585 34,967 28% 22% Total retail clients deposits 20,043 22,890 27,450 14% 20% PLN-mortgage loans volumes ** 565 1,154 2, % 105% Total volume of loans to retail clients 2,855 3,240 4,574 13% 41% Total wholesale clients deposits * 11,497 14,066 17,329 22% 23% Total volume of loans to wholesale clients 7,993 10,733 12,787 34% 19% * including TFI assets ** excluding ING Mortgage Bank 6

7 ING Bank Śląski financial performance - income related to release of provisions replaced by income from banking activity in PLN million 1-4Q Q 2007 Change Total operating income * 1, , % Result before risk costs % Risk costs % Gross profit % Net profit** % C/I ratio (%) 67.8% 67.0% p.p. ROE (%) 18.6% 18.9% p.p. Earnings per 1 ordinary share (PLN) % 4Q Q 2007 Change Total operating income * *** - 0.1% Result before risk costs % * Including share in net profits of affiliates recognized by equity method ** Net profit for the shareholders of the parent entity Risk costs % Gross profit % Net profit** % *** Operating income for 4Q 2007 encumbered by a negative valuation of derivatives 7

8 Market position of ING Bank Śląski - household market Volumes and share in the household deposits market : Volumes and share in the household loans market : Bank Household deposits - volumes (in PLN mln) Market Bank Household loans - volumes (in PLN mln) Market 325,000 6, ,000 26, % 300, % 285,000 5,500 23,000 20, % 8.67% 8.52% 8.90% 8.97% 8.77% 8.56% 245,000 4, % 1.87% 260, , % 180,000 17, ,000 3, % 2.05% 1.94% 1.87% 2.22%2.12% 140,000 14,000 XII 2005 III VI IX XII 2006 III VI IX XII ,000 2,500 XII 2005 III VI IX XII 2006 III VI IX XII ,000 ING Bank Śląski Market ING Bank Śląski Market * The data on the curves represent the market share of ING Bank Śląski (stand-alone data) as at the end of subsequent quarters according to NBP classification 8

9 Market position of ING Bank Śląski - wholesale market Volumes and share in the wholesale deposits market : Volumes and share in the wholesale loans market : Bank Wholesale deposits - volumes (in PLN mln) Market Bank Wholesale loans - volumes (in PLN mln) Market 20,000 13,000 18, % 225,000 12, % 5.79% 5.76% 5.62% 280, ,000 16,000 14, % 8.32% 7.84% 7.70% 200, ,000 11,000 10,000 9, % 5.64% 5.48% 5.40% 220, ,000 12, % 8.22% 7.93% 7.70% 150,000 8, % 160,000 10,000 XII 2005 III VI IX XII 2006 III VI IX XII ,000 7,000 XII 2005 III VI IX XII 2006 III VI IX XII ,000 ING Bank Śląski Market ING Bank Śląski Market * The data on the curves represent the market share of ING Bank Śląski (stand-alone data) as at the end of subsequent quarters according to NBP classification 9

10 Table of contents 1. Introduction to financial results and market position of the Bank 2. Business development 3. Financial results for 4Q

11 Retail Banking - increase of core products sales Retail Banking Number of retail clients went up by 218,000 net (+11% y/y) Number of retail clients current accounts went up by 114,000 net (+11% y/y) Strong position in funds entrusted segment. Increase of the portfolio by 22% y/y up to the level of nearly PLN 35 billion Increase of saving accounts volume by PLN 3.6 billion y/y (+24%) Increase of total lending exposure of retail customers up to the level of over PLN 4.6 billion (+41% y/y) Increase of PLN denominated mortgage loans volume by over PLN 1.2 billion as compared to the previous year (+105%) Lending to small businesses went up by 38% y/y, while deposits gained 25% y/y Private Banking funds entrusted increased by 30% y/y Increase of the number of electronic payments made in 2007 by 10.5 mln up to 40.8 mln. Share of electronic payments in total operations amounted to 92% as at the end of the year Increase of ING BSK On-Line users in 2007 by 260,000 up to the level of 771,000. Number of active users went up by 89,000 and reached the level of 334,000 as at the end of new type branches were opened in Total number of branches as at the end of 2007 reached

12 Funds Entrusted - volume of funds entrusted reached the level of nearly PLN 35 billion Despite growing competition for clients funds, the value of retail funds deposited within the Bank reached the level of nearly PLN 35 billion and was by 22% higher in comparison to end of Very successful year in terms of OKO saving accounts sales. Increase of volumes by over PLN 3.6 billion y/y (+24%). Increase of OKO saving accounts number by 282,000 y/y (+24%). Increase of current accounts volume by PLN 787 million y/y (+24%). Portfolio of funds entrusted by retail clients (in PLN million): 22,280 2,647 2,238 4, , % +4% 34,967 33,513 32,046 30,728 3,702 4,020 28,585 3,265 3,545 3,233 7,517 8,281 6,780 8,211 5,695 3, ,662 3,632 3,319 3, ,450 16,440 16,184 17,572 19, / % -9% +6% +28% +9% Change / % +32% -4% +50% +24% Sav ing accounts ILU & ILT Term accounts and deposits TFI assets Current accounts 12

13 Current accounts - increase of current accounts number by 114,000 y/y net Increase of current accounts number up to the level of 1,154,000 (+114,000 y/y net, +229,000 y/y gross) Current accounts volumes increased by PLN 787 million y/y (+24%) Implementation of a new internet current account: Direct Current Account Volume and number of current accounts: +24% +9% 4,020 3,233 3,265 3,545 3,702 2,647 1,006 1,040 1,055 1,094 1,122 1,154 WYSŁUCHALIŚMY WIELU PROBLEMÓW Current accounts volume (in PLN million) Number of current accounts ('000) 13

14 Saving accounts - increase of saving accounts number by 24% y/y The number of PLN denominated OKO saving accounts went up by 253,000 y/y (+24%) up to nearly 1.3 million. The total number of OKO saving accounts reached the level of over 1.4 million (increase by 24% y/y) Significant increase of saving accounts balances in 4Q 2007 by over PLN 1.5 billion up to the level of nearly PLN 19.1 billion. Saving Accounts of the retail segment (in thousands): Volume of Saving Accounts of the retail segment (in PLN million): +24% +4% +24% +9% 968 1, , , , , , ,388 +1,520 19, , ,036 1,108 1,167 1,233 1, Q Q Q Q PLN denominated saving accounts FX denominated saving accounts 14

15 Investment funds - growth of TFI assets distributed by ING BSK Group by 32% y/y Increase of investment funds assets value by over PLN 1.8 billion (+32%) resulted from good performance of stock exchanges during the first half of 2007 Decrease of investment funds assets value in 4Q by PLN 764 million (-9%) due to the weak performance of WSE and an increased number of redemptions during the last weeks of 2007 ING Umbrella Funds Investment funds assets collected by ING Bank Śląski Group (in PLN million)*: 5,695 +1, % , % 7,517 2, Q Q Q Q * Retail segment funds assets 15

16 Private Banking - growth of funds entrusted to Private Banking segment by 30% y/y Number of Private Banking clients went up to the level of 26,400 y/y (+9%) Volume of funds entrusted to Private Banking went up by PLN 2.2 billion y/y (+30%) Enrichment of the product offer for Private Banking clients: - six subscriptions of Investment Term Deposit and Investment Insurance Deposit held in 2007 VIP accounts number (in thousands): Volume of funds entrusted to Private Banking (in PLN million): % +1% % +2% Q Q Q Q

17 Loan portfolio for retail segment clients - growth of retail loan portfolio by 41% y/y Dynamic growth of loans granted to retail segment clients, mainly resulting from an increase of PLN mortgages volume by above PLN 1.2 billion y/y Significant volume increase of loans granted to SME segment (+38% y/y) as well as credit cards debt (+32% y/y) and consumer loans (+116% y/y) Gradual decrease of inactive loan portfolio to PLN 325 million as at the end of 2007 Loan portfolio for retail segment clients (in PLN million): 2, ,379 3, ,154 1, %/+58%* +8%/+10%* 4,220 3, ,037 1,689 4, , / % +18% -2% +11% +2% +16% Change / % +116% -11% +32% +38% +105% PLN mortgages Loans to SME Credit cards Ov erdraf ts Cash loans Inactiv e porf olio * Excluding inactive portfolio 17

18 Mortgage loans - very successful year in mortgage loans sales Increase of PLN mortgages portfolio value by 105% y/y (+ PLN 1,212 million) up to the level of nearly PLN 2.4 billion as at the end of 2007 Total value of the mortgage loans portfolio exceeded PLN 2.6 billion (increase by 73%, + PLN 1,105 million) Volume of new mortgage loans sold during 2007 reached the value of PLN 1,723 million, which was nearly twice as much as compared to 2006 PLN mortgage loans in retail segment excluding ING Mortgage Bank (in PLN million)*: Sales volume of new loans (PLN million): 565 1, % % 2, Q Q Q Q % 1, Loan Xpress New sales process of standardised mortgage loans dedicated to financial agents. Preliminary loan decision in 18 minutes. Final decision in 11 hours. Automation and electronic circulation of documents. An internal database for property valuation. 4Q 3Q 2Q 1Q * including loans secured by mortgages 18

19 Credit cards - visible effects of sales activities Increase of credit cards number by 41,000 q/q (+19%) and 109,000 y/y (+72%) Further improvement of credit cards sales processes : - ongoing promotion campaign PLN 50 for free - sales of new cards to ING Nationale-Nederlanden clients Value of limit usage went up from PLN 201 million to PLN 265 million (+32% y/y) Implementation of the chip cards technology first cards with microprocessors were issued Number of active credit cards (in thousands): Limit usage (in PLN million): +32% +11% % %

20 Small business - further growth of volumes in the small business segment Growth of loan exposure by PLN 225 million y/y (+38%) as a result of prescoring campaigns held in 2007 Total value of funds deposited on small business accounts grew by PLN 662 million y/y (+25%) to the level of nearly PLN 3.3 billion Continuation of the marketing campaign targeting newly established enterprises. Expanding the offer by a new loan product: an overdraft Volume of total loans granted to small business (in PLN million): Volume of small business deposits (in PLN million): +38% +2% +25% +11% , , ,302 2, ,339 2, ,306 2, ,483 3, , ,243 1,155 1,279 1,377 1, Q2007 2Q Q2007 4Q Term accounts and deposits Saving accounts Current accounts 20

21 Retail branches network - 75 new type branches were opened in 2007 As at the end of 2007 the Bank opened 75 new type branches. By the end of 1Q 2008, 25 branches will be additionally opened. Self-banking areas were implemented in traditional branches. 50 out of 329 traditional branches were operating on selfbanking basis as at the end of Modern design of franchise branches: Number of Bank s branches: INTERNET TERMINAL SELF-SERVICE UNIT TELEPHONE SET WITH ACCESS TO HALOŚLĄSKI ATM DEPOSIT MASHINE 4Q2005 4Q Q Q Q Q Q 2008 (plan) Traditional branches New type branches 21

22 Wholesale Banking - favourable trends continuation Wholesale Banking Growth of the number of corporate clients observed in all client segments - increase by 555 y/y Wholesale deposits volume went up by 23% y/y to over PLN 17.3 billion The value of total wholesale loans portfolio increased to the level of nearly PLN 12.8 billion (+19% y/y) Increase of total Asset Based Lending volume by PLN 473 million y/y (+165%) Value of leasing agreements value by PLN 266 million y/y (+220%) Revenue on FM products sales increased by PLN 36 million y/y (+33%) with a simultaneous favourable change in the revenue structure The role of the Leading Arranger in the PGE commercial bonds issuance of total value of PLN 6.2 billion The number of users of Internet banking systems for corporate clients (ING BankOnLine) increased by nearly 34% The share of paper transfer orders in the total number of transfer orders went down to 0.8% in the last quarter of 2007 Increase of ING Securities net profit up to PLN 64.7 million (+18.2% y/y) As at the end of 2007 ING Securities was no.1 player on the equities trading market with a share of 11.0% 22

23 Client base - stable growth of wholesale client base The number of corporate clients went up by 555 y/y The growth of the client base was observed in all segments. The highest growth dynamics during the year was recorded by the big corporates segment (+12%) Number of wholesale clients*: 11, , ,866 12,043 12,107 12,261 12, ,006 2,084 2,116 2,203 2,256 Change (number of clients) / / ,886 9,121 9,217 9,245 9,308 9, Mid-sized companies Mid corporates Strategic clients (capital groups) * including effects of client base resegmentation 23

24 Cash Management - increase of wholesale deposits portfolio volume by 23% y/y Increase of wholesale clients deposits volume up to the level of PLN 17.3 billion (+23% y/y) as at the end of 2007 mainly due to dynamic growth of strategic clients deposits portfolio (by over PLN 2.7 billion y/y; +40%) Increase of deposits volume in mid corporates segment by 16% y/y Maintaining of deposits volume in mid-sized companies segment at a stable level Volume of wholesale deposits (in PLN million)*: Cash Management +23% +19% Change 17, / / ,066 14,640 14,654 14,534 11,497 6,856 7,042 7,051 6,967 9, % +40% 5,810 2,772 3,167 3,136 3,163 3,319 3, % +16% 2,914 4,044 4,463 4,441 4,249 4,078-4% +1% * including TFI assets Mid-sized companies Mid corporates Strategic clients (capital groups) 24

25 Lending - growth of corporate loans exposure by over PLN 2.0 billion y/y Growth of total wholesale loans portfolio up to nearly PLN 12.8 billion during the year, which means that the exposure to wholesale clients increased by 19% y/y Increase of credit exposure to mid corporates and mid-sized companies by over PLN over 1.2 billion within the year (+25%). Growth of loans in the strategic clients segment by nearly PLN 0.8 billion y/y (+14%). Volume of loans for wholesale clients (in PLN million)*: Lending 10,733 11, % 11,840 12,182 +5% 12, / Change / ,993 5,765 6,213 6,188 6,225 6,567 +5% +14% 3,903 2,523 2,924 3,134 3,362 3,533 3,775 +7% +29% 1,567 2,043 2,060 2,290 2,424 2,444 +1% +20% * including ABL Mid-sized companies Mid corporates Strategic clients (capital groups) 25

26 Asset Based Lending - increase of ABL agreements portfolio by 165% y/y Value of ABL agreements amounted to PLN 759 million as at the end of 2007 New leasing sales totalled PLN 437 million during 2007 Active offering of ABL products via the wholesale sales network ABL as a good acquisition tool creates cross-selling opportunities Value of ABL agreements (in PLN million): ABL +165% +36% / Change / Commercial mortgages* Factoring Leasing +28% +38% +47% +220% +93% +143% *Included in ING Bank Śląski consolidated balance sheet 26

27 Strategic Clients & Financial Markets - record-breaking commercial bonds issuance in the history of Poland ING Bank Śląski played the role of Leading Arranger in PGE commercial bond issuance program (of PLN 6.2 billion total value) launched in December. Joint ING Bank and ING Bank N.V. exposure amounted to PLN 2 billion. As at the end of December 2007 ING Bank Śląski was second market player among mid-term bonds issuance coordinators (bonds issued for total value of PLN 2.7 billion) and third market player among short-term bonds issuance coordinators (bonds issued for total value of PLN 2.3 billion) Mid-term bonds issuance coordinators market share according to Fitch Ratings rank (December 2007): Other 23% Pekao SA 27% Bank Handlowy 5% PKO BP 7% BRE Bank 18% ING Bank Śląski 20% Short-term bonds issuance coordinators market share according to Fitch Ratings rank (December 2007): Other 20% Pekao SA 22% 27 Societe General 7% Bank Handlowy 16% BRE Bank 18% ING Bank Śląski 17%

28 Financial Markets products - increase of revenue from FM products sales by 33% y/y Growth of revenue on FM products sales by PLN 36 million y/y (+33%) visible especially in the mid corporates segment (increase by PLN 17 million y/y; +53%) Gradual and favourable change in the revenue structure: lower share of revenue generated on simple FX-transactions and investments in favour of more sophisticated and profitable derivative transactions Financial Markets Products Revenue on FM sales products (in PLN million): % Structure of revenue on FM sales products : 7% 22% 17% 12% % 66% Q Q 2007 Strategic clients (capital groups) Mid corporates Mid-sized companies 1-4Q Q 2007 Derivatives and structured products Investments FX transactions 28

29 Electronic banking - ING BusinessOnLine: a new electronic banking system for companies In December 2007 ING Bank launched a new internet banking system ING BusinessOnLine dedicated to companies The system is user-friendly, can be fully personalised and is one of the safest on the market ING BusinessOnLine ensures mutual communication between the Bank and its Client, which guarantees constant contact with the Bank Advisor Bank at hand Easily personalised - ING BusinessOnLine can be easily configured thus grants access to Bank information and services depending on the Client s needs User-friendly - ING BusinessOnLine is a modern internet banking system guaranteeing its users intuitive application service Safe - ING BusinessOnLine applies advanced security measures, which ensures full safety of operations 29

30 ING Securities - ING Securities net profit went up by 18.2% y/y Net profit of ING Securities for 2007 totalled PLN 64.7 million as compared with PLN 55.4 million in 2006 (+18.2%) As at the end of 2007 ING Securities was no.1 player on the equities trading market with a share of 11.0% (up from number 4 in 2006). The company was no. 6 player on the futures trading market with a share of 5.9% The number of Internet broker accounts went up by 160% y/y, and totalled more than 11,700 ING Securities financial results (in PLN million): ING Securities market share in equities trading (2007): 80.2 ING SECURITIES 10.98% DM BZ WBK 10.89% +15.9% DM Banku Handlowego 9.47% +18.2% UNICREDIT CAIB 8.66% 1-4Q Q 2007 IPOPEMA 8.41% Gross profit Net profit 30

31 Table of contents 1. Introduction to financial results and market position of the Bank 2. Business development 3. Financial results for 4Q

32 ING Bank Śląski financial performance after 4Q increase of core values in PLN million 1-4Q Q 2007 Change Result on interest , % Result on fees and commissions % Total operating income * 1, , % Total costs 1, , % Result before risk costs % Risk costs % Gross profit % Net profit ** % Balance sheet total 48, , % Equity 3, , % ROA (%) 1.3% 1.2% p.p. ROE (%) 18.6% 18.9% p.p. C/I ratio (%) 67.8% 67.0% p.p. * Including the share in net income of affiliated companies presented using the equity method ** Net profit for shareholders of the dominant entity 32

33 Total income per income statement categories - Bank s revenues increased by 13.5% Higher bank income based mainly on recurring income Further improvement of result on interest as the consequence of growth of both deposits and loans volumes Dynamic growth of result on fees and commissions mainly due to significant increase of income on distribution of investment fund participation units, income on payment and credit cards fees and commissions and higher income on loans commissions Lower income from remaining activities manly caused by negative valuation of derivatives due to lack of hedge accounting in 2007 Total income per income statement category (in PLN million)*: 1, % 2, % +26.6% % % Q 2007/ 3Q % Change 4Q 2007/ 4Q % % % +9.4% Q Q Q Q Q Q Q 2007 Result on interest Result on fees and commissions Remaining activities * The category Other includes the share in the net profit of affiliated entities presented using 33 the equity method

34 Total income per business lines - Bank s revenues increased by 13.5% Steady growth of year-to-date revenue in both retail and corporate banking segment Further stable growth of Retail Banking income both from deposit and lending as well as clearing activity Maintaining Wholesale Banking income at a considerably higher level in comparison to the previous year as the consequence of further growth of client base and volumes Total income per business line (in PLN million): 1, % 2, % % -12.6% % Q 2007/ 3Q % -2.9% Change 4Q 2007/ 4Q % +21.9% , % % +4.3% 1-4Q Q Q Q Q Q Q 2007 Retail Wholesale Own operations 34

35 Total costs per type - improvement of C/I ratio to the level of 67.0% Growth of personnel costs due to adjustment of employees remuneration to market conditions and increase of minimum salary at the Bank Growth of other costs (year-to-date) mainly due to strategic projects implementation aimed at further streamlining of processes and optimisation of sales structure Improvement of C/I ratio to the level of 67.0% as at the end of 2007 (as compared to 67.8% as at the end 2006) Cost per type (in PLN million): +12.2% 1, , % -1.2% % +8.6% % Q 2007/ 3Q 2007 Change 4Q 2007/ 4Q % -24.7% -23.3% -11.0% +40.0% +39.6% % % +20.0% 1-4Q Q Q Q Q Q Q 2007 Personnel costs Depreciation Marketing Other operating costs 35

36 Financial result - increase of result before risk costs by 16.1% y/y Increase of the result before risk costs by 16.1% y/y due to growth of business values Replacing of income from release of provisions by core activity income Lower results in 4Q 2007 mainly due to negative valuation of derivatives due to lack of hedge accounting in 2007 Result before risk costs / gross result/ net result (in PLN million): +16.1% +4.5% +6.7% -10.6% -19.2% -4.9% -34.8% -50.4% -50.8% Result before costs risk Gross financial result Net financial result Result before costs risk Gross financial result Net financial result 1-4Q Q Q Q Q Q Q

37 Assets, equity and profitability ratios - profitability ratios maintained at stable level as compared to 2006 Increase of assets value by PLN 3.5 billion y/y mainly related to growth customers deposits (by PLN 5.9 billion) Profitability ratios maintained at a stable level as compared to previous year Assets (in PLN million) / ROA : Equity (in PLN million) / ROE : +7.3% -2.3% +2.2% +0.5% 48,476 56,617 53,203 53,247 52,022 3,756 3,902 3,622 3,820 3, % 1.4% 1.4% 1.4% 1.2% 18.6% 20.2% 20.5% 21.1% 18.9% Assets ROA Equity ROE 37

38 Bank assets - growth of volume of loans to clients by 24.8% y/y Growth of lending activity, both in households segment (+20.7% y/y) and corporate clients segment (+36.3% y/y) resulting from enrichment of product offer, improvement of client service processes and taking advantage of boom in the economy Increase of loans share in in the structure of the Bank s assets up to the level of 32% as at the end of 2007 Structure of assets: Gross loans for clients (in PLN million): 48,476 56,617 53,203 53,247 52,022 3% 2% 3% 2% 3% 27% 25% 28% 29% 32% 41% 40% 31% 33% 28% 30% 33% 34% 33% 29% 13,571 9,956 14,457 10, % 15,195 11, % 16,941 16,007 12,012 11, / % Change / % 2% 3% 5% 3% 4% Other Loans and cash loans granted Securities Deposits with other banks Cash within the bank 3,615 3,784 4,162 4,603 4, % +36.3% Households Corporates 38

39 Bank liabilities - increase of clients deposits volumes by 18.3% y/y Visible growth of retail deposit base by 17.4% during 2007 Increase of wholesale deposits volume by 19.6% y/y Growth of amount due to clients in Bank s liabilities structure up to 86% as at the end of 2007 Structure of liabilities: Clients deposits (in PLN million): 48,476 56,617 53,203 53,247 52,022 8% 11% 10% 6% 4% 4% 4% 10% 7% 10% 36,257 37, % 37,545 38, % 42, / Change / % 73% 76% 76% 86% 14,657 15,427 15,561 15,568 17, % +19.6% 8% 7% 7% 7% 7% Other liabilities 21,601 22,412 21,984 23,298 25, % +17.4% Amounts due to other banks Amounts due to clients Equity Households Corporates 39

40 Solvency and loans to deposits ratio - solvency ratio maintained at a safe level as compared to 2006 Solvency ratio maintained at a safe level despite further lending intensification Decrease of loans to deposits ratio in 4Q 2007 due to significant increase of deposits volume both in retail and wholesale segment. Solvency ratio: Loans to deposits ratio: -2.6 p.p +2.1 p.p. 0.0 p.p -1.7 p.p. 15.7% 37.4% 38.2% 40.5% 41.2% 39.5% 13.8% 13.4% 13.1% 13.1%

41 Credit portfolio and impairment write-offs - further reduction of impaired portfolio Decreasing share of income from provisions release in the Bank s result Maintaining cautious credit policy stance towards impaired credit portfolio increase of impairment portfolio coverage ratio to the level of 89.6% Gradual drop in the share of impaired portfolio in the total portfolio Share of impaired portfolio in the total loan portfolio: Impairment write-offs (in PLN million) / Impaired portfolio coverage ratio: 5.1% 4.5% 3.8% 3.3% 3.0% 81.6% 84.2% 79.7% 87.5% 87.1% 88.9% 86.6% 89.6% 94.9% 95.5% 96.2% 96.7% 97.0% Q Q Q Q Q Q Q Q Q Q Q Q Q Share of non-impaired portfolio Share of impaired portfolio Impairment write-offs related to sales of part of retail lending portfolio Impairment write-offs Impairment portfolio coverage ratio 41

42 ING Bank Śląski results - Profit & Loss statement in quarterly layout ING Bank Śląski P&L statement in quarterly layout (consolidated, analytical): in PLN million Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q Retail banking Wholesale banking Own operations Proprietary trading ALCO Total operating income Total costs, including: Personnel cost Marketing cost Depreciation Other expenses Result before risk costs Risk costs Result before tax CIT Result after tax assigned to shareholders of the holding company assigned to minority shareholders