Slide 1: BRE Bank Group Results Q1 2007
BRE Bank Group Results Q1 2007 Closer to the Customer BRE Bank SA Management Board Presentation for Investors and Analysts 27 April 2007 1
Slide 2: Agenda
Agenda Introduction Summary of Q1 2007 New Business Line BRE Bank’s Q1 2007 Results Business Line Financial Results and Highlights Analysis of Q1 2007 Financial Results Appendix Detailed Results of the Business Lines, Q1 2007 Additional Information on Selected Financial Data Macroeconomics 2
Slide 3: Agenda
Agenda Introduction Summary of Q1 2007 New Business Line BRE Bank’s Q1 2007 Results Business Line Financial Results and Highlights Analysis of Q1 2007 Financial Results Appendix Detailed Results of the Business Lines, Q1 2007 Additional Information on Selected Financial Data Macroeconomics 3
Slide 4: Summary of Q1 2007
Summary of Q1 2007 1 High Highprofitability profitabilityof ofregular regularbusiness businessoperations operations 2 Creation Creationof ofthe theCorporations Corporationsand andFinancial FinancialMarkets MarketsBusiness BusinessLine Line 3 Fast Fastgrowth growthin inRetail RetailBanking Bankingbus
Slide 5: Summary of Q1 2007: High Profitability of Regular Business Operations
Summary of Q1 2007 High Profitability of Regular Business Operations Profit before tax (including profit on SAMH sale) PLN 295.9 M Profit before tax (excluding SAMH) PLN 206.4 M ROE before tax* 32.0% Cost/income (C/I)* 57.7% Capital adequacy ratio (CAR) 10.86% All presented financial data for the BR
Slide 6: Agenda
Agenda Introduction Summary of Q1 2007 New Business Line BRE Bank’s Q1 2007 Results Business Line Financial Results and Highlights Analysis of Q1 2007 Financial Results Appendix Detailed Results of the Business Lines, Q1 2007 Additional Information on Selected Financial Data Macroeconomics 6
Slide 7: New Business Line (1/6)
New Business Line (1/6) Changes of the way of managing and presenting BRE Bank’s activities Before 1999 2000 2005 2006 2007 Corporate Corporate Corporate Corporate Banking Banking Banking Banking Corporates Investment Investment and Markets Banking Banking Investment Investment Banking Banking Asset
Slide 8: New Business Line (2/6)
New Business Line (2/6) Why the Corporates and Markets Line? Internal Rationale: 1. The creation of the new Line is a consequence of the Bank’s business approach: ¾ Focus on the core business ¾ Aspiration to best meet the needs of our demanding customers for financial services 2. Need of development
Slide 9: New Business Line (3/6)
New Business Line (3/6) Evolution of Investment Banking activity profile ¾ Reduction of proprietary investments portfolio -73,0% -73,0% 980 617 565 336 264 264 2002 2003 2004 2005 2006 31.03.2007 ¾ Focus on business with the bank’s clients Structure of Investment Banking Structure of Investment Bank
Slide 10: New Business Line (4/6)
New Business Line (4/6) Why the Corporates and Markets Line? External Rationale ¾ Modern corporate banking combines traditional banking products with investment products. ¾ At this stage of development of financial markets, sales of financial instruments, including instruments hedging against fx and
Slide 11: New Business Line (5/6): Business Lines Now
New Business Line (5/6) Business Lines Now BRE Bank Group Business Corporates and Markets Retail Banking Lines Corporates Trading and Private Homogeneous Business Areas and Institutions Investments Banking Asset Management Financial Private Proprietary Investments (Trading & Origination) K1 K2 K3
Slide 12: New Business Line (6/6): Expected Results
New Business Line (6/6) Expected Results ¾ Sales force focus on customer relations under a one-stop-shop model (integrated irrespective of products). ¾ The Corporates and Markets Line integrates sales to Corporations and Institutions with Trading and Risks which provide investment products and manag
Slide 13: Agenda
Agenda Introduction Summary of Q1 2007 New Business Line BRE Bank’s Q1 2007 Results Business Line Financial Results and Highlights Analysis of Q1 2007 Financial Results Appendix Detailed Results of the Business Lines, Q1 2007 Additional Information on Selected Financial Data Macroeconomics 13
Slide 14: Summary of Q1 2007 Results: Growing Profitability of Business Lines
Summary of Q1 2007 Results Business Line Results and Highlights, Q1 2007 Growing Profitability of Business Lines Profit before Tax by Business Line, Q1 2006 v. Q1 2007 (PLN M) Corporates and Markets Retail Banking (+PB) 95,3 +73.4% +0.9% +523% 69,3 55,0 41,9 42,3 11,1 Corporates Trading and and Inst
Slide 15: Results of Strategic Subsidiaries
Business Line Results and Highlights, Q1 2007 Results of Strategic Subsidiaries Profit before Tax of Consolidated Subsidiaries Profit before tax 12,3 (PLN M) of strategic 9,6 9,4 8,8 subsidiaries 6,1 up 30% YoY 5,6 5,8 5,2 IQ2006 4,4 4,1 3,8 4,4 IQ2007 2,6 2,5 2,2 2,1 1,4 0,5 1,5 (Q1 2006 excluding
Slide 16: Agenda
Agenda Introduction Summary of Q1 2007 New Business Line BRE Bank’s Q1 2007 Results Business Line Financial Results and Highlights Analysis of Q1 2007 Financial Results Appendix Detailed Results of the Business Lines, Q1 2007 Additional Information on Selected Financial Data Macroeconomics 16
Slide 17: Corporates and Markets: Summary
Business Line Results and Highlights, Q1 2007 Corporates and Markets: Summary Growing Business expansion profitability 606 new corporate customers acquired in Q1 2007 Profit before tax at (up 22% YoY). PLN 137.6 M in Q1 2007 up 42% YoY, incl. Corporate loans up 18.5% YoY. -Corporates & Institutions
Slide 18: Corporates and Markets: Financial Results
Business Line Results and Highlights, Q1 2007 Corporates and Markets: Financial Results Net Line’s Financial Results, Q1 Net Interest Commission Net Cost and Income Income Trading profit Impairment Amortisation Pre-tax profit Line’s profit before tax at PLN 137.6 M 139,0 137,6 in Q1 2007, up 42% Y
Slide 19: Corporates and Institutions: Customers
Business Line Results and Highlights, Q1 2007 Corporates and Institutions: Customers Total New Corporate Customers Number and Structure Corporate Banking Customers 11.442 11.442 11.658 951 K1 969 K1 968 K1 848 2 552 3 517 3 470 3 511 1 917 K2 K2 K2 557 649 +22% +22% 498 606 6 974 7 003 7 179 K3 K3 K
Slide 20: Corporates and Institutions: Business Growth in Loans and Deposits
Business Line Results and Highlights, Q1 2007 Corporates and Institutions: Business Growth in Loans and Deposits BRE Bank Corporate Customers’ Loans, BRE Bank Corporate Customers’ Deposits, PLN B PLN B 16.2 16.6 10.4 K1 9.2 52% 6.0% 35% K2 48% 8.7% share in the 37% share in the market of K3 market o
Slide 21: Expansion of the Corporate Branch Network
Business Line Results and Highlights, Q1 2007 Corporates and Institutions: Expansion of the Corporate Branch Network Optimising the Corporate Branches: Business Offices as an innovative way to expand To leverage the opportunities in the growing corporate banking market Goal: To grow the dynamics of
Slide 22: Retail Banking and Private Banking: Summary
Business Line Results and Highlights, Q1 2007 Retail Banking and Private Banking: Summary Record-high Over 2 million profitability accounts Profit before tax at PLN 69 M in Q1 Retail accounts number up 2007 up by a factor of 6 YoY 6.9% QoQ Successful launch Leader in of the Car mortgage Insurance lo
Slide 23: Retail Banking: Summary
Business Line Results and Highlights, Q1 2007 Retail Banking: Summary As at the end of Q1 2007 2500 [thou.] End of Q1 2007 Change End of Q4 2006 2000 1.73 1.73MM +6.3% 1.63 1.63MM 1500 customers +6.3% customers 1000 customers customers 2.05 2.05MM 1.91 1.91MM 500 accounts +6.9% +6.9% accounts accoun
Slide 24: Retail Banking: Mortgage Loans
Business Line Results and Highlights, Q1 2007 Retail Banking: Summary Mortgage Loans Mortgage Loans: Market Leaders by sales BRE Bank: (PLN M) at 31 March 2007 a top market leader 3,6 in sales of mortgage loans 1,7 1,3 BRE Bank was the third largest provider of new 0,9 mortgage loans in Q1 2007 (t
Slide 25: BRE Wealth Management – Business Concept
Business Line Results and Highlights, Q1 2007 BRE Bank Retail Banking: BRE Wealth Management – Business Concept Basic model Advanced Private Wealth Banking Management • Basic product range (usually • Customer and product profiles • Comprehensive wealth closed product architecture) (managed product m
Slide 26: Car Insurance Supermarket
Business Line Results and Highlights, Q1 2007 BRE Bank Retail Banking: Car Insurance Supermarket The Car Insurance Supermarket was launched on 13 February 2007 Comparison and choice of 7 offers of liability and accident insurance, each offer in 3 variants Purchase and service integrated with the eKO
Slide 27: Retail Banking (+PB) Financial Results
Business Line Results and Highlights, Q1 2007 Analysis: Retail Banking (+PB) Financial Results 69 263 Retail Banking: MultiBank; Segment’s Profit Structure of Profit 25,9 M before Tax before Tax, Q1 (by quarter, PLN thou.) 43 57647 332 2007 (PLN) Others; 11 12111 772 8 571 9 711 (-6,8 M) 798 30 1Q 2
Slide 28: BRE Bank Group’s Profit Structure
Business Line Results and Highlights, Q1 2007 BRE Bank Group’s Profit Structure Income * Cost 7; 1% 7; 2% 173; 269; 55% 60% 91; 160; 31% 32% 62; Wynik/zysk brutto 12% 19; 7% Corporates and 46.2% Institutions 95 Corporates and Markets Trading and * The total profit on the sale of SAMH Investment shar
Slide 29: Agenda
Agenda Introduction Summary of Q1 2007 BRE Bank’s Q1 2007 Results Business Line Financial Results and Highlights Analysis of Q1 2007 Financial Results Appendix Detailed Results of the Business Lines, Q1 2007 Additional Information on Selected Financial Data Macroeconomics 29
Slide 30: Analysis of Results, Q1 2007
Analysis of Results, Q1 2007 Q1 Q1 2007 2007 (PLN (PLN M) M) YoY YoY change change QoQ QoQ Change*** Change*** Total income* 593.4 +52.4% +23.7% Total costs (290.6) +13.0% -3.5% 302.8 +129.1% +69.4% Operating profit** Net provisions (6.9) -69.2% +20.5% Profit before tax 295.9 +170.2% +71.0% Net prof
Slide 31: Loans and Deposits
Analysis of Results, Q1 2007 Loans and Deposits Loans and deposits growing well above the market +33.5% +33.5% +37.0% +37.0% 19,3 21,7 22,7 23,0 25,8 19,5 21,8 22,7 24,7 26,7 +12% +12% +4% +4% +2% +2% +12% +12% +12% +12% +4% +4% +8% +8% +8% +8% 31.03.06 30.06.06 30.09.06 31.12.06 31.03.2007 31.03.06
Slide 32: Income Remains on the Upward Track
Analysis of Results, Q1 2007 Income Remains on the Upward Track Dynamic growth in total income, higher net interest income, lower net commission income after the sale of SAMH BRE Bank Group Income Net interest income remained the Q1 2007 v. Q4 2006 largest P&L item: PLN 228.3 M in PLN M +23.7% +23
Slide 33: Costs under Control
Analysis of Results, Q1 2007 Costs under Control Lower overhead costs, stable amortisation/depreciation C/I at 57.7%* in Q1 2007 Overhead Costs (+Amortisation/Depreciation) v. 63.7% in Q4 2006 of the BRE Bank Group by Quarter Cost +13.0% +13.0% -3.5% -3.5% C/I PLN M QoQ QoQ % Overheads at PLN 247.
Slide 34: Credit Provisions
Analysis of Results, Q1 2007 Credit Provisions Sustained high quality of the risk portfolio, resulting in relatively low costs of loan impairment charged to the Group’s P&L Net Credit and Loans Impairment Provisions (consolidated figures, PLN M) Net impairment of credits and loans at PLN 6.9 M in
Slide 35: Structure of BRE Bank’s Risk Portfolio
Analysis of Results, Q1 2007 Structure of BRE Bank’s Risk Portfolio Sustained high ratio of specific provisions to the default portfolio, falling share of default loans in the total loans portfolio 11.8% 10.8% 9.2% 8.5% 7.2% 5.9% 5.6% 5.5% 4.8% 4,4 4,4 3,9 3,9 3,5 3 3 2,8 2,5 100% 95,7 95,6 96,1 96,
Slide 36: Summary of Q1 2007
Summary of Q1 2007 1 High Highprofitability: profitability:ROE ROEon onregular regularbusiness businessoperations operationsat at32% 32% 2 Creation Creationof ofthe theCorporates Corporatesand andMarkets MarketsLine Linein inresponse responseto to growing growingneeds needsof ofBRE BREBank Bankcorpo
Slide 37: Agenda
Agenda Introduction Summary of Q1 2007 BRE Bank’s Q1 2007 Results Business Line Financial Results and Highlights Analysis of Q1 2007 Financial Results Appendix Detailed Results of the Business Lines, Q1 2007 Additional Information on Selected Financial Data Macroeconomics 37
Slide 38: Appendix: Detailed Business Lines Results and Highlights
Appendix Detailed Business Lines Results and Highlights: Retail Banking and Private Banking Corporates and Markets Corporates and Institutions Trading and Investments 38
Slide 39: Retail Banking: Acquired Microenterprise Customers
Appendix BRE Bank’s Retail Banking: Acquired Microenterprise Customers 197 thousand microenterprises served by BRE Bank’s Retail Banking Line BRE Bank Retail Banking Line’s Microenterprise Customers (thou.) . 200 180 53,2 160 48,0 50,8 11.4 thousand microenterprise customers 140 39,0 42,5 46,0 120
Slide 40: Retail Banking v. the Market: Deposits and Investment Funds
Appendix BRE Bank’s Retail Banking v. the Market: Deposits and Investment Funds (IF) Deposits and IF* (PLN B) 10 350 300 BRE Bank’s 7,5 2.1% 2.5% 250 Retail Banking 1.7% 5 1.3% 200 Line continues to grow above 150 the market 100 2,5 2003 2004 2005 2006 50 0 0 I I I I VI VI VI VI I XI XI XI XI * As a
Slide 41: Retail Banking: Investment Funds (IF)
Appendix BRE Bank’s Retail Banking: Investment Funds (IF) Structure of Assets: MultiBank IF Assets MultiBank Investment Funds by Quarter (PLN M) Investment fund assets changed by Debt Securities Monetary 473 MultiBank PLN 100.6 M in Q1 2007 3% 8% 373 MultiBank customers’ interest Hybrid 28% 246
Slide 42: mBank – eBroker, MultiBank – Brokerage Service
Appendix BRE Bank’s Retail Banking: mBank – eBroker, MultiBank – Brokerage Service Opened 46,1 Dynamic growth of Investment 40,2 brokerage services for Accounts 34,2 37,3 (thou.) 30,1 32,2 retail customers 26,4 28,1 23,5 24,9 21,4 17,3 18,8 14,1 15,5 eBroker trading exceeded PLN 556 M in March 200
Slide 43: Retail Banking v. the Market: Loans
Appendix BRE Bank’s Retail Banking v. the Market: Loans BRE Bank’s Retail Banking is steadily growing its share in the loans sector (especially for housing loans) Loans 2007: 10 Housing Loans 2007: 100 10 200 (PLN B) 4.8% (PLN B) 9.4% 8 80 7,5 150 9% 6 6.5% 60 5 100 5.1% 3% 4.4% 4 40 2.1% 1.2% 2.9%
Slide 44: Mortgage Loans: Portfolio Structure and Quality
Appendix BRE Bank’s Retail Banking: Mortgage Loans: Portfolio Structure and Quality Structure of the Retail Loans Portfolio (Household Loans) as at 31.03.2007 6,0% 5,9% 2,3% BRE Bank’s Mortgage Loans Portfolio (Retail Loans) Total PLN FX Retail Mortgage Loans Balance-sheet value 7.8 1.1 6.7 85,8% (P
Slide 45: Dynamics of Sales, Q1 2007
Appendix BRE Bank’s Retail Banking: Dynamics of Sales, Q1 2007 mBank Customers Deposits Loans (thou.) +6.6% (PLN M) +11.6% (PLN M) +20% 617 609 85 64 270 5930 3653 1375 5314 562 3043 63 1290 1290 3043 328 556 76 337 257 1015 4035 1140 5 06 06 06 6 7 07 05 06 07 05 06 07 06 06 06 07 00 00 00 06 06 06
Slide 46: Growth of the Distribution Network
Appendix BRE Bank’s Retail Banking: Growth of the Distribution Network mBank Distribution Network MultiBank Branches Total: Total: 7 24 54 56 61 62 62 67 35 46 72 82 83 84 84 93 41 139 97 38 38 38 38 46 47 50 52 34 40 42 4 13 44 45 46 46 52 7 22 31 33 38 14 14 15 15 15 15 2 2003 2004 2005 1Q 2006 2Q
Slide 47: Appendix: Detailed Business Lines Results and Highlights
Appendix Detailed Business Lines Results and Highlights: Retail Banking and Private Banking Corporates and Markets Trading and Investments Corporates and Institutions 47
Slide 48: Trading and Investments: Market Share & Position
Appendix Trading and Investments Market Share & Position BRE Bank’s Market Share* BRE Bank in the Market in Investment Banking Services of Non-Treasury Debt** (BRE – in navy blue) As at 31.03.2007 (PLN M) 12,7% 18,5% 38,0% 17.6% 14.51% 33.5% #2 #3 #1 BRE Bank’s Market Share Market 11 638,8 BRE Bank
Slide 49: Risk Management & Origination & Trading
Appendix Trading and Investments Risk Management (Treasury) & Origination & Trading Gross revenues 1Q2006 vs 1Q2007 (mln PLN) 20% YoY Increase +20% due to: 64,4 • Strong pickup in 53,6 underwriting 37,1 activity 33,4 27,3 • Excellent 20,2 performance in Fx Flow trading and Equity trading 1Q2006 1Q20
Slide 50: Trading and Investments: Proprietary Investments
Appendix Trading and Investments: Proprietary Investments Major Proprietary Investments at Share in equity 31.03.2007 At the end of Q1 2007, the Bank’s Vectra SA* 19.95% proprietary investments portfolio was PZU SA 0.76% unchanged at PLN 264 M Garbary Sp. z o.o. 100.00% The value of portfolio at
Slide 51: Appendix: Detailed Business Lines Results and Highlights
Appendix Detailed Business Lines Results and Highlights: Retail Banking and Private Banking Corporates and Markets Trading and Investments Corporates and Institutions 51
Slide 52: Dom Inwestycyjny BRE Banku (DI BRE)
Appendix Corporates and Institutions: Dom Inwestycyjny BRE Banku (DI BRE) DI BRE Accounts (thou.) DI BRE pre-tax profit DI BRE accounts 21.4 at PLN 12.3 M in Q1 2007 (up 101.2% YoY) eBroker (mBank) 46.7 Brokerage Service (MultiBank) 6.8 DI BRE equities trading TOTAL 74.9 at PLN 7.8 B in Q1 2007
Slide 53: New Acquired Customers
Appendix Corporates and Institutions: New Acquired Customers Total New Corporate 606 Customers 498 •606 new corporate customers +22% +22% acquired in Q1 2007, oup by almost 22% YoY; of those, 76% were K3 customers and 20% were K2 customers. I kw. 2006 I kw. 2007 •There were 11,658 corporate New SME
Slide 54: Corporates and Institutions: Loans and Deposits
Appendix Corporates and Institutions : Loans and Deposits Corporate Loans Corporate Deposits 8% (BRE Bank, PLN B) (BRE Bank, PLN B) 16.2 16.6 10.4 14.3 9.6 9.2 9.1 8.4 34% K1 10.7 52% 10.9 39% 7.3 37% 53% 48% 9.2 K2 K3 57% 56% 58% 39% 42% 37% Enterprises 7% 8% 8% 10% 11% 4% 12'2005 12'2005 12 '2006
Slide 55: Loans and Deposits – Market Share
Appendix Corporates and Institutions: Loans and Deposits – Market Share BRE Bank’s Market Share in Corporate Loans and Deposits* 10,0% 8,0% 6,0% Source: NBP reports 4,0% Ja 5 Ja 6 6 5 05 06 -0 -0 5 6 M 5 M 6 M 7 5 6 7 l-0 l-0 -0 -0 0 0 0 -0 -0 -0 ov ov p- p- n- n- n- ay ay Ju Ju ar ar ar N N Se Se J
Slide 56: Cash Management – Supporting Long-term Customer Relationships
Appendix Corporates and Institutions: Cash Management – Supporting Long-term Customer Relationships Cash Management – Strategic Product Line Supporting Long-term Customer Relationships Direct Debits Identification of Mass Payments Identification of Trade Payments (thou. transactions) (M transactions
Slide 57: Foreign Trade Service and Risk Management Products
Appendix Corporates and Institutions: Foreign Trade Service and Risk Management Products Structure of Profit on Trade Finance Products Profit on Financial Instruments (PLN M) +8.9 +8.9%% +17.9 +17.9%% 1,3% PLN 36.8 M 1,1% 12,3% 11,5% PLN 31.2 M 34,2% 20 35,3% 17 52,1% 52,2% 17 14 Q1 2006 Q1 2007 Q1
Slide 58: Good Market for Leasing and Factoring
Appendix Corporates and Institutions: Good Market for Leasing and Factoring BRE Leasing The Intermarket Group Value of leasing contracts executed in Q1 2007: The pre-tax profit of Intermarket Group companies was PLN 654.7 M, up 83% YoY PLN 12.3 M in Q1 2007, up by nearly 13% YoY. The pre-tax pro
Slide 59: BRE Bank Hipoteczny (BBH)
Appendix Corporates and Institutions: BRE Bank Hipoteczny (BBH) Loans Portfolio (PLN M) Profit before Tax (PLN M) Balance-sheet Exposure 108 118 Housing loans* 190 399 427 -2% -2% 213 9,6 9,4 Local government 1 967 loans 1 643 1 775 Commercial loans 31.12.2005 31.12.2006 31.03.2007 I-III 2006 I-III
Slide 60: Additional Information: Selected Financial Data
Appendix Additional Information: Selected Financial Data Consolidated Profit and Loss Account under IFRS Interest Income Structure, Interest Margin Fee and Commission Income Structure Cost Structure Balance Sheet Analysis – Structure of Assets and Liabilities Non-performing Loans 60
Slide 61: Consolidated Profit and Loss Account under IFRS
Appendix Additional Information: Selected Financial Data Consolidated Profit and Loss Account under IFRS PLN’000 Q1 2006 Q2 2006 Q3 2006 Q4 2006 Q1 2007 By quarter * Net interest income 171 098 161 397 194 922 200 327 228 302 Net commission income 111 199 117 987 130 084 157 862 148 841 Dividend inc
Slide 62: Net Interest Income, Net Commission Income
Appendix Additional Information: Selected Financial Data Net Interest Income, Net Commission Income Structure of Net Interest Income Structure of Net Commission Income (consolidated figures, PLN Mł) (consolidated figures, PLN M) 9 220 500 2 33 200 460 29 4 31 420 180 14 93 Other 380 54 Other 160 22
Slide 63: Interest Income Structure
Appendix Additional Information: Selected Financial Data Interest Income Structure Structure of Net Interest Income Net Interest Income, Q1 2007 Q1 2007 by Business Line (consolidated figures, %) (consolidated figures, PLN M) Trading Debt 21,1 -2,9 Securities PDO 7% Other 117,9 228,3 2% Credits and
Slide 64: Commission Income Structure
Appendix Additional Information: Selected Financial Data Commission Income Structure Structure of Net Commission Income Net Commission Income, Q1 2007 Q1 2007 by Business Line (consolidated figures, %) (consolidated figures, PLN M) Other Guarantees 20% and Documentary 5,7 Transactions -0,1 5% -4,9 B
Slide 65: Overhead Cost Structure
Appendix Additional Information: Selected Financial Data Overhead Cost Structure Structure of Overhead Costs BRE Bank Group’s C/I (+Amortisation/Depreciation) (based on average balances) by quarter, PLN M, consolidated figures 66,1 64,7 320 4,6 64,0 63,7 7,1 280 9,6 2,5 7,4 43,6 57,7 43,0 240 40,6 4
Slide 66: Balance Sheet Analysis: Assets
Appendix Additional Information: Selected Financial Data Balance Sheet Analysis: Assets Credits and Loans to Customers* Structure of Assets PLN B PLN B and Portfolio by Customer Category 50 25 1,0 4% 45 22% 40 27% 10,0 1,3 6% 0,5 2% 22% 22% 20 1,9 9% 19% 14% 8,5 11,6 3% 10,2 35 8,8 1,5 2 11% 4,8 8%
Slide 67: Balance Sheet Analysis: Liabilities
Appendix Additional Information: Selected Financial Data Balance Sheet Analysis: Liabilities Structure of Liabilities Structure of Deposits PLN B PLN B 3,6 8% 45 30 40 3,6 9% 2,8 6% 3,810% 3,1 8% 2,6 6% 3,6 8% 27 0,2 1% 35 2,2 6% 2,5 6% 3,4 0,2 1% 4,7 4,2 24 30 3,3 2,213% 4,4 11% 8,0 8% 8,7 19% 0,2
Slide 68: Non-performing Loans: Portfolio Structure
Appendix Additional Information: Selected Financial Data Non-performing Loans: Portfolio Structure* Downward Trend in the Share of NPLs in the Portfolio 31.03.2007 31.12.2006 31.12.2005 Exposure % Provisions Exposure % Provisions Exposure % Provisions PLN B % PLN B % PLN B % coverage coverage covera
Slide 69: Improving Quality of BRE Bank’s Risk Portfolio
Appendix Improving Quality of BRE Bank’s Risk Portfolio Change of average PD of the Corporate Portfolio vs. Non-Retail Impairment Provisions 2,00% 160,00 1,80% 1,80% 1,79% 140,00 1,71% 1,71% Impairement 1,65% provisions 1,60% average, weighted Risk Volume PD 120,00 1,41% 1,40% 1,34% 1,24% 100,00 Pro
Slide 70: Macroeconomics
Appendix Macroeconomics > SRE> BRE BANK SA 70 =>
Slide 71: GDP and Labour Market
Appendix Macroeconomics GDP and Labour Market Contribution to GDP growth 8 Continued high GDP growth, 6 further improvement on the 4 labour market 2 0 -2 GDP growth was 6,1% in 2006 and an Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 estimated 7% in Q1 2007 03 03 04 04 05 05 06 06 GDP growth mainly driven by domesti
Slide 72: Inflation and NBP Interest Rates
Appendix Macroeconomics Inflation and NBP Interest Rates 7% Signs of growing inflation 6% pressure, announced 5% 4% tightening of the monetary 3% 2% policy 1% 0% CPI at the NBP target (2.5%) in March; 4 5 6 04 M 5 M 6 07 04 05 06 -0 -0 -0 0 0 p- p- p- n- n- n- n- ay ay ay core inflation growing gr
Slide 73: Loans and Deposits in the Banking Sector
Appendix Macroeconomics Loans and Deposits in the Banking Sector Households 70% Further growth in housing 60% loans and corporate loans 50% 40% 30% 20% 10% 0% 5 6 05 06 07 5 6 05 06 l-0 l-0 -0 -0 n- n- n- r- r- ct ct Ju Ju Households’ bank debt was PLN 203.6 B Ja Ja Ja Ap Ap O O at the end of Marc
Slide 74: 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 Analyst, Investor Relations Tel. +48 22 829 04 53 Fax: