Slide 1: Results of the BRE Bank Group Q1-3 2008
Results of the BRE Bank Group Q1-3 2008 Management Board of BRE Bank Presentation for Investors and Analysts 30 October 2008 1
Slide 2: Agenda
Agenda BRE Bank Group Results Q1-3 2008 BRE Bank Group: A Quarter in Brief Analysis of Top-Line Growth Analysis of the Consolidated Financial Results BRE Bank Group in the Times of Financial Turbulence Appendix Detailed Results of Business Lines, Q1-3 2008 Additional Information: Selected Financial
Slide 3: Agenda
Agenda BRE Bank Group Results Q1-3 2008 BRE Bank Group: A Quarter in Brief Analysis of Top-Line Growth Analysis of the Consolidated Financial Results BRE Bank Group in the Times of Financial Turbulence Appendix Detailed Results of Business Lines, Q1-3 2008 Additional Information: Selected Financial
Slide 4: Summary of Q1-3 2008 in the BRE Bank Group
Summary of Q1-3 2008 in the BRE Bank Group 1 High profitability of the core business 2 Top-line growth continued 3 Risks are closely monitored 4
Slide 5: Summary of Q1-3 2008: High Profitability of Business
Summary of Q1-3 2008 in the BRE Bank Group High Profitability of Business Continued and discontinued operations Profit before tax PLN 981.2 M ROE before tax 39.9% Cost/Income (C/I) 48.9% Capital adequacy ratio (CAR) 10.5% Unless indicated otherwise, the presented financial data refer to the BRE Bank
Slide 6: Focus on Growing the Profitability of the Regular Business
Summary of Q1-3 2008 in the BRE Bank Group Focus on Growing the Profitability of the Regular Business Regular operations* Profit before tax PLN 776.3 M ROE before tax 31.5% Cost/Income (C/I) 54.0% * i.e. continued and discontinued operations net of the sale of PTE Skarbiec-Emerytura and Vectra SA Re
Slide 7: Results of the Business Lines
Summary of Q1-3 2008 in the BRE Bank Group Results of the Business Lines Profitability of the Business Lines Profit before Tax by Business Line Q1-3 2008 v. Q1-3 2007 (PLN M) Corporates & Markets Retail Banking (+PB) +10.1% +122.8% +39.7% 385.2 350.0 276.2 220.7 197.7 99.1 Corporates and Institution
Slide 8: Results of the Strategic Subsidiaries
Summary of Q1-3 2008 in the BRE Bank Group Results of the Strategic Subsidiaries Profit before Tax of Consolidated Subsidiaries Profit before tax 39.2 38.2 43.3 (PLN M) 36.9 of the strategic 33.3 Q1-3 2007 28.0 subsidiaries 20.0 19.6 Q1-3 2008 in Q1-3 2008 16.9 15.5 11.7 10.0 9.8 8.8 8.0 7.4 up by 4
Slide 9: Agenda
Agenda BRE Bank Group Results Q1-3 2008 BRE Bank Group: A Quarter in Brief Analysis of Top-Line Growth Analysis of the Consolidated Financial Results BRE Bank Group in the Times of Financial Turbulence Appendix Detailed Results of Business Lines, Q1-3 2008 Additional Information: Selected Financial
Slide 10: Continued Growth of Loans to Clients
Analysis of Top-Line Growth Continued Growth of Loans to Clients Growth of Gross Loans Total lending up by 9.4% QoQ (PLN B) +15.8% +4.7% +4.2% QoQ QoQ QoQ 0.04 Loans to retail clients 2.7 1.0 up by 15.8% QoQ and 56.0% YoY 44.2 Loans to corporate clients 40.4 +9.4% +9.4% up by 4.7% comparing to 3
Slide 11: Increasing Deposit Base
Analysis of Top-Line Growth Increasing Deposit Base Growth Rate of Deposits (PLN B) +9.6% +1.8% -68.5% Total deposits up QoQ QoQ QoQ by 4.8% QoQ 1.6 0.3 -0.2 Continued growth of deposits 36.4 +4.8% +4.8% 38.1 of retail clients (up by 9.6% QoQ and up by 62.0% YoY) Deposits of corporate clients 30
Slide 12: Corporates and Markets: Customer Acquisition and Volumes Trends
Analysis of Top-Line Growth Corporates and Markets: Customer Acquisition and Volumes Trends End of Q2 2008 Change End of Q3 2008 Corporate Clients corporate 12 678 15 000 12 000 clients +1.3% 12 846 +1.3% 9 000 6 000 corporate 22.3 B +4.7% 23.3 B +4.7% 3 000 0 loans (PLN) 30.06.08 30.09.08 thereof l
Slide 13: Retail Banking (Poland): Customer Acquisition and Volumes Trends
Analysis of Top-Line Growth Retail Banking (Poland): Customer Acquisition and Volumes Trends At the end of Q3 2008 End of Q2 2008 Change End of Q3 2008 (M) 3 2 2.3 M clients +5.9% +5.9% 2.4 M 1 0 Customers Accounts 2.7 M accounts +6.8% +6.8% 2.9 M deposits mBank (Poland) MultiBank 13.0 B (PLN) +8.2%
Slide 14: Retail Banking (CZ/SK): Customer Acquisition and Volumes Trends
Analysis of Top-Line Growth Retail Banking (CZ/SK): Customer Acquisition and Volumes Trends At the end of Q3 2008 End of Q2 2008 Change End of Q3 2008 (thou.) 300 250 134.5 thou. +41.9% 190.8 thou. 200 150 clients +41.9% 100 50 0 Customers Accounts 210.5 thou. accounts +43.2% 301.4 thou. +43.2% (EUR
Slide 15: Agenda
Agenda BRE Bank Group Results Q1-3 2008 BRE Bank Group: A Quarter in Brief Analysis of Top-Line Growth Analysis of the Consolidated Financial Results BRE Bank Group in the Times of Financial Turbulence Appendix Detailed Results of Business Lines, Q1-3 2008 Additional Information: Selected Financial
Slide 16: P&L of Continued Operations
Analysis of the Results, Q1-3 2008 P&L of Continued Operations (PLN M) Q3 2008 Q2 2008 Change QoQ Change YoY Total income* 691.5 628.1 +10.1% +27.2% Total cost (360.5) 362.7 -0.6% +20.7% Operating profit** 331.0 265.4 +24.7% +35.1% Net provisions (70.8) (45.6) +55.2% +103.5% Profit before tax 260.2
Slide 17: Income of BRE Bank Group
Analysis of the Results, Q1-3 2008 Income of BRE Bank Group Continuous growth of recurrent income in Q3 thanks to sound client business which especially drove net interest and net trading income BRE Bank Group Income Structure of BRE Bank Group Income* Q3 2008 v. Q2 2008 by Business Line, Q1-3 2008
Slide 18: Interest Income Driven by Both Deposits and Loans
Analysis of the Results, Q1-3 2008 Interest Income Driven by Both Deposits and Loans Net Interest Income, Q3 2008 by Business Line* Structure of Interest Income Q3 2008 (PLN M) (%) +10.9% +10.9% Debt Securities 8% Loans and Other 28.6 -6.3 -3.5 Advances 1% 73% Cash and Short- 167.6 term Funds 11% 36
Slide 19: Commission Income Seasonally Down
Analysis of the Results, Q1-3 2008 Commission Income Seasonally Down Net Commission Income, Q3 2008 by Business Line* Structure of Net Commission Income Q3 2008 (PLN M) (%) Guarantees and trade -9.2% -9.2% Other finance commissions 9% Brokerage fees and fees 0 6.0 7% 4% -5.5 Client's accounts and 87
Slide 20: Trading Income
Analysis of the Results, Q1-3 2008 Trading Income Growth in customer driven business with high turnover in both FX spot and FX derivatives transactions Net Trading Income Structure FX Result Structure in 1-3Q 2008 (by quarters, consolidated data, PLN M) (PLN M) K1; 160 27.4 Retail Banking; 140 5.8 1
Slide 21: Costs under Control
Analysis of the Results, Q1-3 2008 Costs under Control Overhead Costs (+Depreciation) of BRE Bank Group C/I ratio* By Quarter of regular operations +20.7% +20.7% at 54.0% in Q1-3 2008 Costs, PLN M -0.6% -0.6% C/I QoQ QoQ % 360 90 320 80 280 240 70 Overhead costs (incl. depreciation) 60 in Q3 2008
Slide 22: BRE Bank Group Keeps a Safe Capital Adequacy Ratio
Analysis of the Results, Q1-3 2008 BRE Bank Group Keeps a Safe Capital Adequacy Ratio Relation between Capital Adequacy Ratio (CAR) Available growth in RWA as at 30.09.2008 (PLN B; LHS) and Risk Weighted Assets (RWA) RWA (PLN B, LHS) 90 12,5% CAR (%; RHS) 80 11,5% 70 10,5% 60 9,5% 50 8,5% 40 7,5% 30
Slide 23: Credit Provisions
Analysis of the Results, Q1-3 2008 Credit Provisions Stable quality of the portfolio Net provisions driven by portfolio provisions growing in line with the growth of the risk portfolio Net Credit and Loans Impairment Provisions BRE Bank Portfolio Quality: Comparison (consolidated data, PLN M) (%) -4
Slide 24: Agenda
Agenda BRE Bank Group Results Q1-3 2008 BRE Bank Group: A Quarter in Brief Analysis of Top-Line Growth Analysis of the Consolidated Financial Results BRE Bank Group in the Times of Financial Turbulence Appendix Detailed Results of Business Lines, Q1-3 2008 Additional Information: Selected Financial
Slide 25: Doesn't Loan to Deposit Ratio Worry You?
Doesn’t Loan to Deposit Ratio Worry You? Loan to Deposit Ratio Well, one needs to look at the real funding structure... The ratio of loans to deposits stands at 113.9%, but this is because of different funding policy for FX risk mitigation, where mid-term loans in CHF fund CHF-denominated mortgages,
Slide 26: Will Your LtD Go up Once Zloty Depreciates Further?
Will Your LtD Go up Once Zloty Depreciates Further? The level of our LtD is immune to currency movements as... ...instead of swapping PLN deposits to CHF mortgages we fund them via mid-term loans from financial institutions in CHF, so that... ...BRE Group has a balanced currency position Group expos
Slide 27: How About Your Funding; Are There Large Repayments Near-Term?
How About Your Funding; Are There Large Repayments Near-Term? We see no risk... Maturity of long- and mid-term loans by 2010 (PLN bn) ...as within years 2009-2010 BRE Bank 15 will need to refinance PLN 3.2 bn of long- and mid-term loans drawn 10 in the past to fund FX lending. This means that... 5 .
Slide 28: Economic Slowdown v. Mortgage Portfolio Quality (1/2)
Economic Slowdown v. Mortgage Portfolio Quality Does the Expected Economic Slowdown in Poland Bring the Risk of Deterioration to Your Mortgage Portfolio Quality? (1/2) We are confident, for several reasons: BRE Bank mortgage offer is addressed to affluent customers with income significantly above av
Slide 29: Economic Slowdown v. Mortgage Portfolio Quality (2/2)
Economic Slowdown v. Mortgage Portfolio Quality Does the Expected Economic Slowdown in Poland Bring the Risk of Deterioration to Your Mortgage Portfolio Quality? (2/2) Income needed to obtain PLN 250 thou. mortgage in CHF* (PLN thou.) 5 4,5 4 3,5 3 2,5 2 1,5 1 0,5 0 bank A bank B bank C bank D bank
Slide 30: How Do You Mitigate the FX Risk on the Customer's Side?
How Do You Mitigate the FX Risk on the Customer’s Side? We build in a safety limit while calculating customer’s creditworthiness The effect of the safety limit for a CHF loan granted for 25 years period 100% 85% Allowed values defined Total creditworthiness by the Bank 45% Maximum installment amount
Slide 31: Can Your Approach to Customers' Risk Mitigation Really Work?
Can Your Approach to Customers’ Risk Mitigation Really Work? Let’s look at a real-life example (PLN) BRE Bank Bank A Bank B Available loan value * 175 300 293 000 318 000 Installment 890 1 487 1 614 Installment (PLN) increase resulting from CHF/PLN growth 2 925 2 697 2 695 2 485 High risk of default
Slide 32: Do You Do Stress-Testing for FX Mortgage Loans?
Do You Do Stress-Testing for FX Mortgage Loans? We regularly stress-test for movements in PLN/CHF exchange rate, interest rate and decrease of real estate prices, from the point of view of NPL ratio and loan loss provisions (LLP) The current changes in the PLN/CHF exchange rate are still well below
Slide 33: Summary of Q1-3 2008 in the BRE Bank Group
Summary of Q1-3 2008 in the BRE Bank Group 1 High profitability of the core business 2 Top-line growth continued 3 Risks are closely monitored Announcement of mid-term strategy postponed due to changed macroeconomic parameters 4 and markets’ volatility. To be presented once external conditions stabi
Slide 34: Appendix
Agenda Appendix BRE BANK SA 34 =>
Slide 35: Appendix contents
Appendix Slide No. Slide No. Detailed Results of the Business Lines– slides No. 36-63 BRE Bank Retail Banking 36-50 Corporates & Markets – Summary of Q1-3 2008 51-53 Summary of Q1-3 2008 37-39 Corporates & Institutions 54- Deposits and Investment Funds 40 Clients, Loans and Deposits 54-56 Savings 41
Slide 36: Detailed Results of the Business Lines: Retail Banking
Appendix Detailed Results of the Business Lines, Q1-3 2008 Retail Banking 36
Slide 37: BRE Bank Retail Banking in Q1-3 2008: Summary
Appendix BRE Bank Retail Banking in Q1-3 2008 Summary Quarterly pre-tax Growth profit in Poland of the client base exceeded PLN 120 M Acquisition in Q3 2008: 35.6% contribution to the profit of the Group in Q1-Q3 2008 in Poland: (net of one-off transactions) 133.5 thou. clients (+5.9% QoQ) in Czech
Slide 38: Retail Banking: Mortgage Loans
Appendix BRE Bank Retail Banking: Summary of Q1-3 2008 Mortgage Loans Successful quarter on the mortgage loans market Record high sale of mortgage loans: PLN 2.1 B of loans granted in Q3 2008 (+63.1% YoY) for mBank and MultiBank jointly Number 2 in Poland* by newly granted mortgage loans 10.2%
Slide 39: Retail Banking (+PB): Financial Results
Appendix BRE Bank Retail Banking (+PB): Summary of Q1-3 2008 Financial Results -21.5 -19.3 Structure of the Profit before Tax of Retail Profit before Tax of the Segment mBank mBank Banking in Q3 2008 (by quarter**, PLN M) CZ & SKCZ & SK (PLN M) MultiBank; -16 44.1 mBank CZ & SK 69.3 70.9 98.7 57.5 -
Slide 40: Retail Banking v. the Market: Deposits and Investment Funds
Appendix BRE Bank Retail Banking v. the Market: Deposits and Investment Funds Deposits and Investment Funds (PLN B) 2008: 3.9% BRE Bank Retail Banking Line 1.3% 1.7% 2.1% 2.6% 3.1% continues 17,5 400 to grow above the market 15 350 12,5 300 10 250 200 7,5 150 BRE Bank (LHS) 5 100 Market (RHS) 2,5 50
Slide 41: Retail Banking: Savings
Appendix BRE Bank Retail Banking: Savings BRE Bank customers quickly react eBroker and Brokerage Service to changing conditions account for 22% on the financial market of DI BRE’s trading in equities Investment Fund Assets Total eBroker and Brokerage ServiceTrading At Quarter End by Quarter (PLN M)
Slide 42: mBank eBroker, MultiBank Brokerage Service
Appendix BRE Bank Retail Banking: mBank – eBroker, MultiBank – Brokerage Service Dynamic growth Opened Investment Accounts (thou., incremental) 104 of brokerage services 90 96 for Retail Banking 83 74 customers 62 46 37 In September 2008, 24 28 34 eMakler trading reached PLN 225 M, 14 17 9 11 12 1
Slide 43: Retail Banking v. the Market: Loans
Appendix BRE Bank Retail Banking v. the Market: Loans BRE Retail Banking Loans 2008*: (PLN B) 5.8% 22,5 1.2% 2.1% 3.0% 4.5% 5.2% 300 20 BRE Retail Banking 250 17,5 loans portfolio 15 200 up to PLN 19.1 B 12,5 150 10 7,5 100 Market share in retail loans 5 up to 5.8% 2,5 2003 2004 2005 2006 2007 50 at
Slide 44: Retail Banking v. the Market: Mortgage Loans
Appendix BRE Bank Retail Banking v. the Market: Mortgage Loans Until the end of September 2008 we sold over PLN 5 564 M of new mortgage loans, remaining one of the top market leaders Mortgage Loans: Market Leaders Housing Loans – Market Share 2008*: by Value of Sales January-August 2008 (PLN B) (PLN
Slide 45: Mortgage Loans: Portfolio Structure and Quality
Appendix BRE Bank Retail Banking: Mortgage Loans: Portfolio Structure and Quality BRE Bank’s Mortgage Loans Portfolio Structure of the Retail Banking Loans Portfolio (Retail Banking loans to individuals) (Household Loans) at 30.09.2008 9% 6% Total PLN FX 3% Balance-sheet value 15.39 2.32 13.07 (PLN
Slide 46: How Does the Low Downpayment Insurance (LDI) Work?
Appendix BRE Bank Retail: How Does the Low Downpayment Insurance (LDI) Work? Day of disbursement of loan: Day of default of loan: 20% LTV = Amount covered Compensation by insurer 20% LTV = LDI 20.000 CHF by insurer at the day LDI at the day of default 20.000 CHF of disbursement equals to 20.000CHF e
Slide 47: Acquisition of Microenterprises
Appendix BRE Bank Retail Banking: Acquisition of Microenterprises 291.8 thousand microenterprises served by BRE Bank Retail Banking Number of served microenterprises Number of Microenterprises up by 27.2 thousand in Q3 2008 Served by BRE Bank Retail Banking (thou.) PLN 1,742.5 M of loans granted
Slide 48: Internet Platform – SUS and Insurance Centre
Appendix BRE Bank Retail Banking: Internet Platform – SUS and Insurance Centre ‘It’s hard to top the Car Insurance Supermarket’ Newsweek ‘mBank’s offer is the most attractive’ Pentor Research International The Car Insurance Supermarket (mBank) was launched on 13 February 2007 and the Insurance Cen
Slide 49: Growth of Sales, Q3 2008
Appendix BRE Bank Retail Banking: Growth of Sales, Q3 2008 mBank Clients Deposits Loans (thou.) (PLN M) (PLN M) +28.0% +55.5% +67.9% 768 118 762 1347 101 634 104 1202 835 104 964 505 64 10 361 1952 711 8 215 72 752 530 85 1629 16 7 629 609 617 5 399 1290 5 314 3 043 06 07 08 07 07 07 07 08 08 08 06
Slide 50: Growth of the Distribution Network
Appendix BRE Bank Retail Banking: Growth of the Distribution Network mBank Distribution Network MultiBank Branches (in Poland) (in Poland) Total: Total: 7 24 54 65 67 75 83 103 117 136 144 35 46 72 84 93 101 101 109 113 122 130 51 49 44 46 44 44 63 225 41 139 56 38 41 27 34 4 10 4 13 79 65 67 73 58
Slide 51: Detailed Results of the Business Lines: Corporates & Markets
Appendix Detailed Results of the Business Lines, Q1-3 2008 Corporates & Markets 51
Slide 52: Corporates and Markets in Q1-3 2008: Summary
Appendix Corporates and Markets in Q1-3 2008 Summary Profitability Business up by 35% YoY expansion The Line’s profit before tax Loans to enterprises at PLN 605.9 M up by 24.6% YoY in Q1-Q3 2008 1,813 companies acquired (up 34.9% YoY) in Q1-3 2008 10% market share in enterprises’ deposits Active tra
Slide 53: Corporates and Markets: Financial Results
Appendix Corporates and Markets: Summary of Q1-3 2008 Financial Results Financial Results of the Line, Q3 2008 (PLN M) PLN 167.6 M of profit before tax in Q3 2008 (+43% QoQ; close 0 to Q1 2008 profit net of one-off transactions) 113.8 -33.9 Increase of profit before tax compared to Q2 2008 resul
Slide 54: Corporates and Institutions: Clients
Appendix Corporates and Institutions: Clients Corporate Clients: Number and Structure Total New Corporate Banking Customers 10,033 11,442 12,285 12,678 12,846 2552 2495 946 K1 963 K1 942 K1 614 969 K1 928 K1 3 827 3 853 662 3 470 3 721 K2 K2 558 K2 3 179 K2 K2 613 693 606 562 5 926 7 003 7 601 7 909
Slide 55: Corporates and Institutions: Loans and Deposits
Appendix Corporates and Institutions: Loans and Deposits 8% Corporate Clients’ Loans Volume Corporate Clients’ Deposits Volume (BRE Bank, PLN B) (BRE Bank, PLN B) 9.2 10.4 11.8 12.2 12.7 14.4 14.6 14.6 16.2 16.6 19.7 18.2 19.7 17.6 18.2 18.0 14% 10% 11% 13% 14% 13% 10% 11% 8% 9% 10% 9% 9% 41% 36% 42
Slide 56: Loans and Deposits – Market Share
Appendix Corporates and Institutions: Loans and Deposits – Market Share BRE Bank’s Market Share in Corporate* Loans and Deposits January 2005 – September 2008 12,0% Corporate* Deposits Volume (BRE Bank only, PLN B) 14.2 10,0% 10.0% 10.0% 12.9 12.7 13.3 12.5 14.0 10.7 10.9 8,0% 6,0% 6.4% 6.4% 4,0% 5
Slide 57: Corporates and Institutions: Cash Management
Appendix Corporates and Institutions: Cash Management Cash Management – Strategic Product Line Supporting Long-term Customer Relations Direct Debit Identification of Trade Payments Number of Clients Using Cash (thou. of transactions) (thou. of transactions) Consolidation Services +33.5% +53.4% +30.6
Slide 58: Foreign Trade Service and Risk Management Products
Appendix Corporates and Institutions: Foreign Trade Service and Risk Management Products Foreign Trade Service Sales of Financial Instruments The market position in foreign trade service The profit on sales of financial instruments and the launch of innovative product solutions to corporate cust
Slide 59: Leasing and Factoring
Appendix Corporates and Institutions: Leasing and Factoring BRE Leasing Intermarket Group Leasing contracts written in Q1-3 2008 Pre-tax profit of Intermarket Group companies* at a total of PLN 2.5 billion, at PLN 39.7 M after Q3 2008 (+5.0% YoY); up by almost 12.1% YoY and up by 34.7% pre-tax p
Slide 60: BRE Bank Hipoteczny (BBH)
Appendix Corporates and Institutions BRE Bank Hipoteczny (BBH) Loans Portfolio (PLN M) Profit before Tax (PLN M) Balance-sheet Exposure 70 73 81 625 86 574 95 100 569 562 42.4 108 511 38.2 118 466 190 427 399 28.0 213 2942 3171 2700 1 967 2 196 2 386 2595 +36.4% 1 643 1 775 31.12.2005 31.12.2006 31.
Slide 61: Dom Inwestycyjny BRE Banku (DI BRE)
Appendix Corporates and Institutions Dom Inwestycyjny BRE Banku (DI BRE) Profit before tax at PLN 20.0 m after Q3 2008 Number of Accounts with DI BRE - End of Q3 2008 (thousand) (annualised ROE after Q3 2008 at 75%) compared to PLN 43.3 M after Q3 2007 DI BRE accounts 23.9 and PLN 53.9 M in 2007 (
Slide 62: Trading and Investments: Market Share
Appendix Trading and Investments Market Share BRE Bank’s Maret Share* BRE Bank in the Market in Investment Banking Services of Non-Treasury Debt** (BRE – in navy blue) at 30.09.2008 (PLN M) Market 14 903.8 15 140.1 BRE Bank 12 554,3 15.8% 23.5% 3 820.6 2 881.9 2 404.1 Treasury IRS/FRA Bills and Bond
Slide 63: Proprietary Investments Portfolio
Appendix Trading and Investments Proprietary Investments Portfolio At the end of Q3 2008, Major Equity Investments Equity Stake the portfolio at 30.09.2008 under management was PLN 302 M at cost PZU SA 0.76% Compared to the end of 2007, Garbary Sp. z o.o. 100.00% the portfolio under management w
Slide 64: Additional Information: Selected Financial Data
Appendix Additional Information: Selected Financial Data 64
Slide 65: Consolidated Profit and Loss Account under IFRS
Appendix Additional Information: Selected Financial Data Consolidated Profit and Loss Account under IFRS PLN’000 By quarter * Q3 2007 Q4 2007 Q1 2008 Q2 2008 Q3 2008 Net interest income 267 770 291 083 315 346 326 895 363 960 Net commission income 139 004 135 721 150 441 155 008 147 215 Dividend inc
Slide 66: Net Interest Income
Appendix Additional Information: Selected Financial Data Net Interest Income Net interest income up Interest Income Structure quarter by quarter: (by quarter, consolidated data, PLN M) PLN 364.0 M in Q3 2008 v. PLN 326.9 M in Q2 2008 and PLN 267.8 M in Q3 2007 1040 Other 990 940 8 72 Consolidate
Slide 67: Net Commission Income
Appendix Additional Information: Selected Financial Data Net Commission Income Net commission income Commission Income Structure (consolidated data, PLN M) in Q3 2008 up by 1.4% QoQ; and up by 17.4% YoY 240 220 Other The largest net commission 200 44 44 income item – lending fees 180 42 46 Money
Slide 68: Trading Income
Appendix Additional Information: Selected Financial Data Trading Income Trading Income Structure 200,0 (by quarter, consolidated data, PLN M) 180,0 160,0 140,0 120,0 100,0 80,0 60,0 40,0 20,0 0,0 Q32007 Q4 2007 Q1 2008 Q2 2008 Q3 2008 -20,0 K1 K2 K3 Others Risk & liquidity Trading &Origination Retai
Slide 69: Administrative Expenses Structure
Appendix Additional Information: Selected Financial Data Administrative Expenses Structure Structure of Administrative Expenses (+Depreciation) C/I of the BRE Bank Group* by quarter, PLN M, consolidated data (%) 400 7.7 58.1 12.3 10.9 56.9 360 10.3 41.4 320 8.9 48.3 51.1 45.4 49.9 50.6 280 46.6 135.
Slide 70: Loans and Deposits
Appendix Additional Information: Selected Financial Data Loans and Deposits Loans Deposits (PLN B, net) (PLN B) +37.3% +37.3% +31.4% +31.4% 43.4 37.2 39.7 38.1 33.7 33.6 36.4 31.6 32.4 29.0 +7% +7% +11% +11% +7% +7% +9% +9% +12% +12% +4% +4% +8% +8% +5% +5% 30.09.07 31.12.07 31.03.08 30.06.08 30.09.
Slide 71: Balance Sheet Analysis: Assets
Appendix Additional Information: Selected Financial Data Balance Sheet Analysis: Assets Structure of Assets Loans and Advances to Customers* (PLN B) - Portfolio by Customer Category 70 (PLN B) 65 3.9 6% 5.5 9% 2.8 4% 45 60 3.2 5% 0.7 2% 4.6 3.9 6% 7% 2% 55 3.9 7% 1.8 3% 40 0.6 4.4 8% 5.2 8% 4.2 4.9
Slide 72: Balance Sheet Analysis: Liabilities
Appendix Additional Information: Selected Financial Data Balance Sheet Analysis: Liabilities Structure of Liabilities Structure of Deposits (PLN B) (PLN B) 70 40 65 5.3 8% 0.1 0% 5.,7 9% 6% 0.3 1% 60 9% 4.2 35 5.7 3.9 6% 2.2 3% 0.2 1% 55 9% 0.7 2% 4.9 3.7 6% 2.2 3% 50 4.1 8% 3.4 6% 2.7 4% 30 0.2 1%
Slide 73: Capital Adequacy Ratio
Appendix Additional Information: Selected Financial Data Capital Adequacy Ratio Capital Adequacy Ratio under NCA Capital Requirement 31.12.2007 31.12.2007 Q2 2008 Q3 2008 (PLN M) Basel I Basel II Basel II Basel II Credit risk 2 998 2 896 3 430 3 739 Market risk 93 123 79 105 Operational risk - 280 2
Slide 74: Structure of BRE Bank's Risk Portfolio
Appendix Additional Information: Selected Financial Data Structure of BRE Bank’s Risk Portfolio The share of default exposures down modestly YTD and stable QoQ The ratio of provisions to default exposures down modestly 7.2% 5.9% 5.6% 5.5% 4.8% 4.4% 4.6% 3.6% 3.6% 3.4% 2.8% Quality of the Loans 3.5 3
Slide 75: Why Are Net Provisions Up?
0,00% 0,10% 0,20% 0,30% 0,40% 0,50% 0,60% 2006-01 0,323% 2006-02 0,302% 2006-03 0,295% 2006-04 0,314% 2006-05 0,281% 2006-06 0,263% 2006-07 0,267% 2006-08 0,227% 2006-09 0,196% 2006-10 0,234% Appendix 2006-11 0,237% 2006-12 0,198% 2007-01 0,201% 2007-02 0,233% 2007-03 0,246% 2007-04 0,196% 2007-05 0
Slide 76: NPLs: Portfolio Structure
Appendix Additional Information: Selected Financial Data NPLs: Portfolio Structure* The share of NPLs in the portfolio (balance-sheet) decreased in Q3 2008 30.09.2008 30.06.2008 31.12.2007 Expo- % Provi- Expo- % Provi- Expo- % Provi- sure sions % sure sions % sure sions % PLN B coverage PLN B covera
Slide 77: Macroeconomics
Appendix Macroeconomics 77
Slide 78: Macroeconomics: GDP and Labour Market
Appendix Macroeconomics: GDP and Labour Market GDP growth factors (%) Lower GDP growth, 12 Consumption Investment Net exports strong wages growth, Others GDP 10 record-low unemployment 8 6 The GDP growth rate fell 4 from 6.0% YoY in Q1 to 5.8% YoY in Q2 2008. 2 The growth rate of investments fell
Slide 79: Macroeconomics: Inflation and NBP Interest Rates
Appendix Macroeconomics: Inflation and NBP Interest Rates CPI (% YoY), RPP inflation target The end of growing inflation NBP intervention rate (%) and probably 7% CPI NBP 6% of the interest rate hike cycle 5% 4% The CPI was at its high (4.8% YoY) in July and August 3% and fell to 4.8% YoY in Septe
Slide 80: Macroeconomics: Loans and Deposits in the Banking Sector
Appendix Macroeconomics: Loans and Deposits in the Banking Sector Corporations Stabilised growth rate of deposits, modestly higher growth rate of household loans Strong growth in household deposits continued in Q3 (23.9% YoY in September). It was driven by raised interest rates on deposits, contin
Slide 81: Contact
Contact BRE Bank’s Investor Relations Officers at your service: Jakub Korczak Director, Investor Relations Direct dial: +48 22 829 04 79 Secretariat: +48 22 829 02 98 Fax: +48 22 829 02 97 E-mail: jakub.korczak@brebank.pl or Joanna Filipkowska Tel.: +48 22 829 04 53 Analyst, Investor Relations Fax: