Mbank Sa · GPW:MBK
Mbank Sa — BRE Bank — FY2008 Earnings Presentation
87 slides from Mbank Sa's earnings presentation, Feb 3, 2009
Slide 1: Results of BRE Bank Group Q1-4 2008
Results of BRE Bank Group Q1-4 2008 Management Board of BRE Bank Presentation for Investors and Analysts 03 February 2009 1
Slide 2: Agenda
Agenda BRE Bank Group Results Q1-4 2008 BRE Bank Group: Year in Brief Analysis of Top-Line Growth Analysis of the Consolidated Financial Results BRE Bank Group in 2009: ‘BREnova’ Key Group Strategic Directions Appendix Detailed Results of Business Lines, Q1-4 2008 Additional Information: Selected Fi
Slide 3: Agenda
Agenda BRE Bank Group Results Q1-4 2008 BRE Bank Group: Year in Brief Analysis of Top-Line Growth Analysis of the Consolidated Financial Results BRE Bank Group in 2009: ‘BREnova’ Key Group Strategic Directions Appendix Unless indicated otherwise, the presented financial data refer to the BRE Bank Gr
Slide 4: Summary of Q1-4 2008 in the BRE Bank Group
Summary of Q1-4 2008 in the BRE Bank Group 1 PLN 1 billion of pre-tax profit in 2008, but Q4 difficult BREnova: 2 - balanced business model responding to market challenge 3 Recommendation to retain 2008 profit 4
Slide 5: Summary of Q1-4 2008 in the BRE Bank Group
Summary of Q1-4 2008 in the BRE Bank Group High Profitability of Business Continued and discontinued operations Profit before tax PLN 1.0 B ROE before tax 30.8% Cost/Income (C/I) 55.1% Capital adequacy ratio (CAR) 10.03% Regular operations* Profit before tax PLN 741.2 M ROE before tax 22.8% Cost/Inc
Slide 6: Results of the Business Lines
Summary of Q1-4 2008 in the BRE Bank Group Results of the Business Lines Profitability of the Business Lines Profit before Tax by Business Line Q1-4 2008 v. Q1-4 2007 (PLN M) Corporates & Markets Retail Banking (+PB) -20.0% +98.3% +6.2% 444.8 355.7 261.7 227.5 241.5 131.9 Corporates and Institutions
Slide 7: Results of the Strategic Subsidiaries
Summary of Q1-4 2008 in the BRE Bank Group Results of the Strategic Subsidiaries Profit before Tax of Consolidated Subsidiaries (PLN M) 53.1 53.9 49.9 2008 profit before tax 47.4 42.4 Q1-4 2007 36.7 34.1 Q1-4 2008 of strategic subsidiaries 27.9 25.9 22.3 21.3 at PLN 224.4 M 1) 1) 12.6 12.5 11.7 11.9
Slide 8: Agenda
Agenda BRE Bank Group Results Q1-4 2008 BRE Bank Group: Year in Brief Analysis of Top-Line Growth Analysis of the Consolidated Financial Results BRE Bank Group in 2009: ‘BREnova’ Key Group Strategic Directions Appendix Unless indicated otherwise, the presented financial data refer to the BRE Bank Gr
Slide 9: Continued Growth of Loans to Clients
Analysis of Top-Line Growth Continued Growth of Loans to Clients Total lending Growth of Gross Loans (PLN B) +89.5% +30.2% +33.4% up by 54.2% YoY YoY YoY YoY 0.3 5.9 Loans to retail clients 12.4 up by 89.5% YoY and 32.6% QoQ 53.0 (9.5% QoQ without the impact 34.4 +54.2% +54.2% of PLN depreciation*
Slide 10: Increasing Deposit Base
Analysis of Top-Line Growth Increasing Deposit Base Growth Rate of Deposits (PLN B) Total deposits up +61.0% -10.2% -89.2% YoY YoY YoY by 16.5% YoY 7.9 -1.9 -0.6 Continued growth of deposits of retail clients (up by 61.0% YoY and up by 11.4% QoQ ) +16.5% +16.5% 37.8 32.4 Deposits of corporate cl
Slide 11: Corporates and Markets: Customer Acquisition and Volumes Trends
Analysis of Top-Line Growth Corporates and Markets: Customer Acquisition and Volumes Trends End of 2007 Change End of 2008 Corporate Clients corporate 12 285 +6.6% 13 098 +6.6% 15 000 12 000 clients 9 000 6 000 corporate 19.5 B +30.2% 25.4 B +30.2% 3 000 0 loans (PLN) 31.12.2007 31.12.2008 thereof l
Slide 12: Retail Banking (Poland): Customer Acquisition and Volumes Trends
Analysis of Top-Line Growth Retail Banking (Poland): Customer Acquisition and Volumes Trends End of 2008 End of 2007 Change End of 2008 (M) 4 2.0 M clients +24.0% +24.0% 2.5 M 3 2 1 0 Clients Accounts 2.4 M accounts +30.5% +30.5% 3.2 M deposits mBank (Poland) MultiBank 10.4 B (PLN) +47.9% 15.3 B +47
Slide 13: Retail Banking (CZ/SK): Customer Acquisition and Volumes Trends
Analysis of Top-Line Growth Retail Banking (CZ/SK): Customer Acquisition and Volumes Trends End of 2008 End of 2007 Change End of 2008 (thou.) 450 375 300 225 25.7 thou. clients xx10 10 244.1 thou. 150 75 0 Clients Accounts 36.4 thou. accounts xx1111 389.3 thou. (EUR M) (EUR M) 180 800 600 135 8.4 M
Slide 14: Agenda
Agenda BRE Bank Group Results Q1-4 2008 BRE Bank Group: Year in Brief Analysis of Top-Line Growth Analysis of the Consolidated Financial Results BRE Bank Group in 2009: ‘BREnova’ Key Group Strategic Directions Appendix Unless indicated otherwise, the presented financial data refer to the BRE Bank Gr
Slide 15: P&L of Continued Operations, Q1-4 2008
Analysis of the Results, Q1-4 2008 P&L of Continued Operations (PLN M) 2008 2007 Change YoY Total income* 2 686.4 2 202.0 +22.0% Total cost (1 550.1) (1 279.6) +21.1% Operating profit** 1 136.3 922.4 +23.2% Net provisions (269.1) (76.8) +250.4% Profit before tax 867.1 845.6 +2.6% Net profit*** 758.7
Slide 16: P&L of Continued Operations, Q4 2008
Analysis of the Results, Q1-4 2008 P&L of Continued Operations (PLN M) Q4 2008 Q3 2008 Change QoQ Total income* 593.7 688.7 -13.8% Total cost (472.4) (363.8) +29.9% Operating profit** 121.3 324.9 -62.7% Net provisions (130.5) (70.8) +84.3% Profit before tax (9.1) 254.1 +/- Net profit*** (16.6) 204.0
Slide 17: Focus on Growing the Profitability of the Regular Business
Analysis of the Results, Q1-4 2008 Focus on Growing the Profitability of the Regular Business Recurrent Operating Profit (PLN M) 350 300 250 That is how we end up 200 with recurrent pre-tax profit 150 of PLN 130.2 M in Q4 2008 100 50 Calculation of Recurrent Pre-tax Profit in Q4 2008 (PLN M) - 1Q 2Q
Slide 18: Income of BRE Bank Group
Analysis of the Results, Q1-4 2008 Income of BRE Bank Group BRE Bank Group Income Q4 2008 v. Q3 2008 (PLN M) +19.6 +5.7 -6.3 -105.9 -2.2 -5.8 Decline 688.7 -13.8% 593.7 of recurrent income in Q4 because of: Lower origination of FX mortgage loans Net Interest Dividend Net Fee and Net Trading Incoem a
Slide 19: Income: Impact of Derivative Instruments
Analysis of the Results, Q1-4 2008 Income of BRE Bank Group: Impact of Derivative Instuments Impact of Options/Derivatives on Q4 2008 Consolidated pre-tax Profit -84.3 -84.3 (PLN (PLNM) M) -56.6 P&L -130.5 61.9 -27.7 Q4 2008 initial Impact of FX Q4 2008 final Q4 2008 initial Impact of FX Q4 2008 fin
Slide 20: Interest Income Driven by Both Deposits and Loans
Analysis of the Results, Q1-4 2008 Interest Income Driven by Both Deposits and Loans Net Interest Income, Q4 2008 by Business Line* Structure of Interest Income Q4 2008 (PLN M) (%) +5.4% +5.4% Debt Securities 25.1 Loans and 5% Advances -6.3 -4.4 73% Other 1% Cash and Short- 170.0 term Funds 10% 364.
Slide 21: Commission Income
Analysis of the Results, Q1-4 2008 Commission Income Net Commission Income, Q4 2008 by Business Line* Structure of Net Commission Income Q4 2008 (PLN M) (%) Guarantees and trade Client's -4.7% -4.7% finance commissions accounts and money and fees transfers 11.1 5% 0 16% -5.8 Other*** 12% 98.9 Paymen
Slide 22: Trading Income
Analysis of the Results, Q1-4 2008 Trading Income Trading Income in Q4 2008 driven by the impairment of FX options and lower sales of FX mortgage loans Net Trading Income Structure FX Result Structure in Q1-4 2008 (by quarters, consolidated data, PLN M) (PLN M) K1; PLN 7.4 M; 2% 160 Retail Banking;
Slide 23: Costs: Seasonal Increase in Q4
Analysis of the Results, Q1-4 2008 Costs: Seasonal Increase in Q4 Overhead Costs (+Depreciation) of BRE Bank Group C/I ratio* By Quarter of regular operations Costs PLN M +27.5% +27.5% +29.9% +29.9% C/I % at 60.6% in Q1-4 2008 480 QoQ QoQ 90 440 400 80 Total administrative expenses in Q4 amounted
Slide 24: BRE Bank Group's Capital Adequacy Ratio
Analysis of the Results, Q1-4 2008 BRE Bank Group’s Capital Adequacy Ratio Relation between Capital Adequacy Ratio (CAR) Available growth in RWA as at 31.12.2008 (PLN B; LHS) and Risk Weighted Assets (RWA) RWA (PLN B, LHS) 90 12,0% CAR (%; RHS) 80 11,0% 70 10,0% 60 9,0% 50 8,0% CAR at the safe level
Slide 25: Credit Provisions
Analysis of the Results, Q1-4 2008 Credit Provisions Quality of the portfolio slightly lower Net Credit and Loans Impairment Provisions BRE Bank Portfolio Quality (consolidated data, PLN M) (%) -46 -76.8 -269.1 4 3.9 4 3.8 4 4 3.5 3.4 10 3,6 3,5 3 3,2 3 -10 -7 -6 -7 1 2.9 3 -10 2.7 2,8 3 2.5 2.5 -30
Slide 26: Impairment Provisions in Q4 2008
Analysis of the Results, Q1-4 2008 Impairment Provisions in Q4 2008 BRE Bank Group’s Impairment Losses on Loans and Advances in Q4 2008 vs. Q3 2008 Growth of impairment provisions (PLN M) in Corporates & Markets 16.2 -9.4 driven mainly by the impairment of FX options 20.8 Higher provisions of Re
Slide 27: Summary of Q1-4 2008
Summary of Q1-4 2008 PLN 1 billion of pre-tax profit in 2008, 1 but Q4 Q4 results influenced by adverse market conditions BREnova: 2 - balanced business model responding to market challenge Recommendation 3 to retain 2008 profit 27
Slide 28: Agenda
Agenda BRE Bank Group Results Q1-4 2008 BRE Bank Group: Year in Brief Analysis of Top-Line Growth Analysis of the Consolidated Financial Results BRE Bank Group in 2009: ‘BREnova’ Key Group Strategic Directions Appendix Unless indicated otherwise, the presented financial data refer to the BRE Bank Gr
Slide 29: Key Group Strategic Directions: 'BREnova'
Key Group Strategic Directions: ‘BREnova’ 29
Slide 30: Where we aim long-term... The Best Financial Institution
BRE Bank Group in 2009 Key Group Strategic Directions: ‘BREnova’ Where we aim long-term... The Best Financial Institution for Demanding Corporate Clients, Individuals and Entrepreneurs Corporates Retail Banking Retail Banking & Markets Poland International Focus on Continued growth, cross-sell, focu
Slide 31: Economic Outlook
Key Group Strategic Directions: ‘BREnova’ Economic Outlook Economic outlook 8% Forecasts of GDP Growth (% YoY) has worsened since mid-2008 • 6.6% Economic outlook expected 6% • 4,8% to have adverse impact • 4.8% on banking market development • 4.5% • 4.1% • 4.5% 4% More short-term, active Chief
Slide 32: What Exactly is BREnova?
Key Group Strategic Directions: ‘BREnova’ What Exactly is BREnova? This is why we launch the ‘BREnova’ Program BREnova BREnovaaims aimsat atadjusting/revising adjusting/revisingexisting existingbusiness businessand and operating operatingmodel modelto tonew newmacroeconomic macroeconomicenvironment
Slide 33: Directions & actions for 2009
Key Group Strategic Directions: ‘BREnova’ How do We Plan to Deal with Economic Slowdown? 11 Directions & actions for 2009 Revenue & business initiatives Corporates & Markets Retail Banking Poland Retail Banking CZK/SK 33
Slide 34: Revenue & Business Initiatives 2009: Corporates & Markets
Key Group Strategic Directions: ‘BREnova’ Revenue & Business Initiatives 2009: Corporates & Markets Key issue: 11 Revenue Enhancement how to maintain revenue level during the period of economic slowdown? Actions to be undertaken Result: stable income level in 2009 Business & revenue initiatives Stru
Slide 35: Corporates & Institutions: Refinement of Business Model
Revenue & Business Initiatives 2009: Corporates & Institutions: Refinement of Business Model Further enhancement and development 11 Revenue Enhancement of cohesive business model as a key solution to demanding budget targets and unpredictable market conditions in mid-term perspective Account Manag
Slide 36: Revenue & Business Initiatives 2009: Retail Banking Poland
Revenue & Business Initiatives 2009: Retail Banking Poland Key issue: 11 Revenue Enhancement How to shift revenue Retail business relies heavily on mortgage lending, accounting for ca. 40% of total retail revenues Monthly Income Structure (%) Annual Income (%) ~ -9% ~9% 60% 65% ~ 80% 40% 35% ~ 20% Ø
Slide 37: How to achieve ca. 30% growth in non-mortgage income
Revenue & Business Initiatives 2009: Retail Banking Poland How to achieve ca. 30% growth in non-mortgage regular income in 2009? ~ 30% ~10-15% ~ 10-15% ~ 5% Consumer Finance Customer base growth Other initiatives Key success factors: Key success factors: Key success factors: Achieve market average
Slide 38: Retail Banking (Czech and Slovak Market)
Revenue & Business Initiatives 2009: Retail Banking (Czech and Slovak Market) 11 Revenue Enhancement EXISTING BUSINESS MODEL 2009 BUSINESS MODEL Mixed deposit, transactional and lending Focus on deposit business model to be further revenue structure developed together with Group Treasury and non
Slide 39: Viability Criteria for International Expansion
Revenue & Business Initiatives 2009: Retail Banking: Viability Criteria for International Expansion Hungary Romania Revenue Enhancement 11 Current macroeconomic GDP 2009F: -1.6% GDP 2009F: 1.8% Inflation: 2.8% Inflation: 5.7% Exchange rate: high volatility Exchange rate: risk of outlook
Slide 40: Non-revenue initiatives: plan for new market conditions
Key Group Strategic Directions: ‘BREnova’ How do We Plan to Deal with Expected Slowdown? Non-revenue initiatives: 22 plan for the new market conditions Cost management Monitoring and reaction 40
Slide 41: Cost Revision Initiatives
Key Group Strategic Directions: ‘BREnova’ Cost Revisions Necessary: Cost Revision Initiatives 22 Cost Optimization Rationale for ...with effect on BRE Significant measures in main cost categories... optimization efficiency Rapid growth of Reduce personnel costs business last few HR Limit bonus
Slide 42: Continuous Monitoring of Conditions with Additional Measures
Key Group Strategic Directions: ‘BREnova’ Continuous Monitoring of Conditions with Additional Measures in Place Monitoring of changing environment Quick reaction in case indicators and impact on business change significantly Key external indicators Worsening Further cost reductions will be monit
Slide 43: BREnova: Making BRE Weatherproof
‘BREnova’: Making BRE Weatherproof and …… Building a Solid Foundation for Renewed Dynamic Growth Through structural measures, such as: 1. Revised business model focused on profitability, i.e. - diversified revenue structure, - improved product portflio, - active cross-sell within the Group 2. Optimi
Slide 44: Agenda
Agenda BRE Bank Group Results Q1-4 2008 BRE Bank Group: Year in Brief Analysis of Top-Line Growth Analysis of the Consolidated Financial Results BRE Bank Group in 2009: ‘BREnova’ Key Group Strategic Directions Appendix Detailed Results of Business Lines, Q1-4 2008 Additional Information: Selected Fi
Slide 45: Appendix
Appendix Slide No. Slide No. Detailed Results of the Business Lines– slides No. 46-69 Corporates & Markets – Summary of Q1-4 2008 59 BRE Bank Retail Banking 46-57 Corporates & Institutions 60-66 Summary of Q1-4 2008 47-49 Clients, Loans and Deposits 60-62 Deposits and Investment Funds 50 Cash Manage
Slide 46: Detailed Results of the Business Lines: Retail Banking
Appendix Detailed Results of the Business Lines, Q1-4 2008 Retail Banking 46
Slide 47: Retail Banking: Summary of Q1-4 2008 Financial Results
Appendix BRE Bank Retail Banking (+PB): Summary of Q1-4 2008: Financial Results -19.3 Structure of the Profit Profit before Tax of the Segment -21.5 mBank before Tax of Retail MultiBank; (by quarter**, PLN M) mBank Cz &SK Banking in 2008 126.2 -16 CZ & SK (PLN M) mBank 69.3 70.9 CZ &SK 86.7 Other; 5
Slide 48: Retail Banking (Poland): Customer Trends Q4 v. Q3
Appendix Retail Banking (Poland): Customer Acquisition and Volumes Trends in Q4 v. Q3 2008 At the end of Q4 2008 End of Q3 2008 Change End of Q4 2008 (M) 4 3 2 1 2.4 M clients +4.7% +4.7% 2.5 M 0 Customers Accounts 2.9 M accounts +8.1% +8.1% 3.2 M mBank (Poland) MultiBank deposits 14.0 B +9.3% 15.3
Slide 49: Retail Banking (CZ/SK): Customer Trends Q4 v. Q3
Appendix Retail Banking (CZ/SK): Customer Acquisition and Volumes Trends in Q4 v. Q3 2008 At the end of Q4 2008 End of Q3 2008 Change End of Q4 2008 (thou.) 400 350 300 250 200 190.8 thou. clients +27.9% 244.1 thou. +27.9% 150 100 50 0 Customers Accounts 301.4 thou. accounts +29.2% 389.3 thou. +29.2
Slide 50: Retail Banking: Deposits and Investment Funds
Appendix BRE Bank Retail Banking: Deposits and Investment Funds Deposits and Investment Funds (PLN B) 2008: BRE Bank Retail 1.3% 1.7% 2.1% 2.6% 3.1% 4.0% Banking Line 20 continues 17,5 400 350 to grow 15 300 12,5 250 10 200 7,5 150 BRE Bank (LHS) 5 100 Market (RHS) 2,5 50 2003 2004 2005 2006 2007 Ma
Slide 51: mBank eBroker, MultiBank Brokerage Service
Appendix BRE Bank Retail Banking: mBank – eBroker, MultiBank – Brokerage Service Dynamic growth Opened Investment Accounts (thou., incremental) of brokerage services 115 104 96 for Retail Banking 83 90 customers 74 62 46 In December 2008, 28 34 37 24 eMakler trading reached PLN 275.1 M, 14 17 11 1
Slide 52: Retail Banking: Loans
Appendix BRE Bank Retail Banking: Loans BRE Retail Banking Loans (PLN B) 2008: 1.2% 2.1% 3.0% 4.5% 5.2% 6.8% 25 360 BRE Retail Banking 22,5 320 loans portfolio up to PLN 25.0 B 20 280 17,5 240 15 Market share in retail loans 200 12,5 up to 6.8% 160 10 at the end of December 2008 120 7,5 5 80 2,5 40
Slide 53: 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 31.12.2008 5% 8% Total PLN FX 2% Balance-sheet value 20.75 2.34 18.4 (PLN B
Slide 54: Acquisition of Microenterprises
Appendix BRE Bank Retail Banking: Acquisition of Microenterprises 312.0 thousand microenterprises* serviced by BRE Bank Retail Banking Number of serviced microenterprises Number of Microenterprises up by 20.2 thousand in Q4 2008 at BRE Bank Retail Banking (thou.) PLN 1,971.3 M of loans granted t
Slide 55: 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 144.6 thou. The Car Insurance Supermarket (mBank) was launched on 13 February 2007 insurance
Slide 56: Retail Banking: Net Sales by Quarters
Appendix BRE Bank Retail Banking: Net Sales by Quarters mBank Clients Deposits Loans (thou.) (PLN M) (PLN M) +25.0% +42.8% +102.0% 83 535 118 2688* 768 101 762 104 1347 1202 634 104 10 903 64 2 035 10 896 835 72 964 505 85 752 711 1 629 16 530 617 7 629 609 5 399 1 290 3 043 5 314 * 06 07 07 07 07 0
Slide 57: 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 83 103 117 136 144 161 35 46 72 84 93 101 101 109 113 122 130 131 51 52 49 77 63 44 46 56 44 44 41 41 27 38 10 4 34 68 4 13 79 79
Slide 58: Detailed Results of the Business Lines: Corporates & Markets
Appendix Detailed Results of the Business Lines, Q1-4 2008 Corporates & Markets 58
Slide 59: Corporates and Markets: Summary of Q1-4 2008
Appendix Corporates and Markets: Summary of Q1-4 2008: Financial Results Financial Results of the Line, Q4 2008 Line’s profit before tax at PLN 617.4 million in 2008 (PLN M) (including PLN 137.7 million on a one-off transaction) 24.1 93.1 -1.1 -72.7 Line’s contribution to the profit before tax o
Slide 60: 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 13 098 2 552 2 495 2 433 942 K1 946 K1 968 K1 614 620 963 K1 969 K1 928 K1 3 827 3 853 3 896 662 558 3 721 K2 3 470 K2 K2 K2 3 179 K2 K2 613
Slide 61: 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 15.7 16.2 16.6 19.7 18.2 19.7 17.6 18.2 18.0 15.9 10% 14% 11% 13% 14% 13% 10% 11% 10% 9% 10% 16% 8
Slide 62: 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 – December 2008 12,0% Corporate* Deposits Volume (BRE Bank only, PLN B) 10,0% 9.1% 9.1% 14.0 14.2 13.7 12.9 12.7 13.3 12.5 8,0% 10.7 10.9 6,0% 6.4% 6.4% 4,0%
Slide 63: 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 +35.0% +51.0% +32.1
Slide 64: Products with EU Financing and Risk Management Products
Appendix Corporates and Institutions: Products with EU Financing and Risk Management Products Sales of Banking Products with EU Financing Sales of Financial Instruments The sales of products The profit on sales of financial instruments related to EU financing to corporate customers were up by 31
Slide 65: Leasing and Factoring
Appendix Corporates and Institutions: Leasing and Factoring BRE Leasing Intermarket Group Leasing contracts written in 2008 Pre-tax profit of Intermarket Group companies* at a total of PLN 3.4 billion, at PLN 49.2 M in 2008 (-5.4% YoY); up by 23.0% YoY pre-tax profit of Polfactor at PLN 12.4 M
Slide 66: BRE Bank Hipoteczny (BBH)
Appendix Corporates and Institutions: BRE Bank Hipoteczny (BBH) Loans Portfolio (PLN M) Profit before Tax (PLN M) Balance-sheet Exposure 73 704 73 86 +25.0% 574 100 569 118 466 53.1 190 399 42.4 213 3567 2 386 2 196 2196 1 643 1 775 31.12.2005 31.12.2006 30.06.2007 31.12.2007 30.06.2008 31.12.2008 2
Slide 67: Dom Inwestycyjny BRE Banku (DI BRE)
Appendix Corporates and Institutions Dom Inwestycyjny BRE Banku (DI BRE) Profit before tax at PLN 25.9 M in 2008 (ROE in 2008: 73%) Number of Accounts with DI BRE - End of 2008 (thousand) compared to PLN 53.9 M in 2007 (ROE in 2007: 156%) DI BRE accounts 20.9 Strengthening of the market position
Slide 68: Trading and Investments: Market Share
Appendix Trading and Investments Market Share BRE Bank’s Market Share* BRE Bank in the Market in Investment Banking Services of Non-Treasury Debt** (BRE – in navy blue) at 31.12.2008 (PLN M) Market 14 944.4 BRE Bank 12 952.3 13.6% 22.9% 12 395.0 3 462.2 2 843.7 1 559.2 Treasury IRS/FRA Bills and Bon
Slide 69: Proprietary Investments Portfolio
Appendix Trading and Investments Proprietary Investments Portfolio At the end of Q4 2008, Major Equity Investments Equity Stake the portfolio under management at 31.12.2008 was PLN 251 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 70: Additional Information: Selected Financial Data
Appendix Additional Information: Selected Financial Data 70
Slide 71: Consolidated Profit and Loss Account under IFRS
Appendix Additional Information: Selected Financial Data Consolidated Profit and Loss Account under IFRS PLN’000 By quarter * Q4 2007 Q1 2008 Q2 2008 Q3 2008 Q4 2008 Net interest income 291 083 315 880 327 305 364 846 384 421 Net commission income 135 721 142 381 145 359 135 026 128 700 Dividend inc
Slide 72: Net Interest Income
Appendix Additional Information: Selected Financial Data Net Interest Income Interest Income Structure Net interest income up (by quarter, consolidated data, PLN M) quarter by quarter: PLN 384.0 M in Q4 2008 v. PLN 364.8 M in Q3 2008 7 Other and PLN 291.1 M in Q4 2007 1090 56 990 9 72 Consolidat
Slide 73: Net Commission Income
Appendix Additional Information: Selected Financial Data Net Commission Income Commission Income Structure Net commission income in Q4 2008 (consolidated data, PLN M) down by 4.7% QoQ; and down by 5.2% YoY 240 220 Commission income up 200 quarter by quarter: 180 42 62 62 67 73 up by 1.8% QoQ and
Slide 74: Trading Income
Appendix Additional Information: Selected Financial Data Trading Income Trading Income Structure (by quarter, consolidated data, PLN M) 200 150 100 50 0 -50 Q4 2007 Q1 2008 Q2 2008 Q3 2008 Q4 2008 K1 K2 K3 Others Risk&Liquidity Financial Markets Retail Banking Q4 2008 Q3 2008 Q2 2008 Q1 2008 2007 Tr
Slide 75: 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 (%) 500 12.5 450 58.2 400 7.7 60.6 10.3 12.6 10.6 57.8 350 41.4 48.5 45.5 51.3 300 194.0 49.
Slide 76: Loans and Deposits
Appendix Additional Information: Selected Financial Data Loans and Deposits Loans Deposits (PLN B, net) (PLN B) +54.8% +54.8% +16.5% +16.5% 52.1 43.4 36.4 38.1 37.8 37.2 39.7 32.4 33.6 33.7 +11% +11% +7% +7% +9% +9% +20% +20% +4% +4% +8% +8% +5% +5% -1% -1% 31.12.07 31.03.08 30.06.08 30.09.08 31.12.
Slide 77: 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 (PLN B) 85 80 5.3 6% 60 75 3.4 4% 5.5 7% 0.7 70 1% 65 3.9 6% 5.6 7% 50 60 5% 5.5 9% 2.8 4% 4.6 6% 3.2 4.6 7% 0.7 7% 3.
Slide 78: Balance Sheet Analysis: Liabilities
Appendix Additional Information: Selected Financial Data Balance Sheet Analysis: Liabilities Structure of Liabilities Structure of Deposits (PLN B) (PLN B) 85 80 40 11.6 14% 0.1 0% 75 1% 0.1 0% 70 0.3 8% 3.9 5% 35 5.3 1.8 2% 0.2 1% 9% 65 5.7 0.7 2% 60 9% 4.2 6% 5.7 3.9 6% 2.2 3% 30 19.3 16.9 55 9% 2
Slide 79: 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 Q3 2008 Q4 2008 (PLN M) Basel I Basel II Basel II Basel II Credit risk 2 998 2 896 3 739 4 205 Market risk 93 123 105 89 Operational risk - 280 2
Slide 80: 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 up modestly in Q4 2008; the ratio of provisions to default exposures down to 57% 5.9% 5.6% 5.5% 4.8% 4.4% 4.6% 3.6% 3.6% 3.4% 2.8% 2.8% Quality of the Loans 3 3 2.8 2.5 2.2
Slide 81: Average PD and Portfolio Provisions
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 82: NPLs: Portfolio Structure
Appendix Additional Information: Selected Financial Data NPLs: Portfolio Structure* The share of NPLs in the portfolio (balance-sheet) remained stable in Q4 2008 31.12.2008 30.09.2008 31.12.2007 Expo- % Provi- Expo- % Provi- Expo- % Provi- sure sions % sure sions % sure sions % PLN B coverage PLN B
Slide 83: Macroeconomics
Appendix Macroeconomics 83
Slide 84: Macroeconomics: GDP and Labour Market
Appendix Macroeconomics: GDP and Labour Market GDP growth factors (%) Declining growth of investments, 12 Consumption Investment Net exports lower GDP growth, Others GDP 10 falling employment 8 6 4 GDP growth was down from 5.8% YoY in Q2 to 4.8% YoY in Q3. 2 The growth of investments was down shar
Slide 85: Macroeconomics: Inflation and NBP Interest Rates
Appendix Macroeconomics: Inflation and NBP Interest Rates CPI (% YoY), RPP inflation target NBP intervention rate (%) 7% CPI Inflation is down, NBP 6% interest rate cuts begin 5% 4% The CPI was down to 3.3% YoY at the end of 2008 3% and fell within the band 2% of allowed deviation from the NBP inf
Slide 86: Macroeconomics: Loans and Deposits in the Banking Sector
Appendix Macroeconomics: Loans and Deposits in the Banking Sector 35 Deposits (%, YoY) Depozyty Corporations Sharply weakening zloty 30 Loans (%, YoY) Kredyty distorted the growth 25 in bank assets and liabilities 20 15 10 Amounts receivable of the banking sector 5 grew by over 36% in 2008. 0 Hous
Slide 87: Contact
Contact BRE Bank’s Investor Relations Officers at your service: Joanna Filipkowska Direct dial: +48 22 829 04 53 Analyst, Investor Relations Secretariat: +48 22 829 02 98 Fax: +48 22 829 02 97 E-mail: joanna.filipkowska@brebank.pl or Agnieszka Solarz Direct dial: +48 22 829 08 18 Investor Relations