Slide 1: Results of the BRE Bank Group Q1-2 2008
Results of the BRE Bank Group Q1-2 2008 Management Board of BRE Bank Presentation for Investors and Analysts 31 July 2008 1
Slide 2: Agenda
Agenda BRE Bank Group Results Q1-2 2008 BRE Bank Group: A Quarter in Brief Key Achievements and Financial Results of the Business Lines Analysis of the Consolidated Financial Results Appendix Detailed Results of Business Lines, Q1-2 2008 Additional Information: Selected Financial Data Macroeconomics
Slide 3: Agenda
Agenda BRE Bank Group Results Q1-2 2008 BRE Bank Group: A Quarter in Brief Key Achievements and Financial Results of the Business Lines Analysis of the Consolidated Financial Results Appendix 3
Slide 4: Summary of Q1-2 2008: Major Events and Achievements
Summary of Q1-2 2008 in the BRE Bank Group Major Events and Achievements 1 Results.... good 2 Realisation of Group’s 2008 business targets – check list at half-year 3 Creating synergies within BRE Group – case BRE Ubezpieczenia 4 Merger of PTE Skarbiec-Emerytura and PTE Aegon 4
Slide 5: High Profitability of Business
Summary of Q1-2 2008 in the BRE Bank Group High Profitability of Business Continued and discontinued operations Profit before tax PLN 721.0 M ROE before tax 44.1% Cost/Income (C/I) 47.5% Capital adequacy ratio (CAR) 9.2% 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 Q1-2 2008 in the BRE Bank Group Focus on Growing the Profitability of the Regular Business Regular operations* Profit before tax PLN 516.1 M ROE before tax 31.5% Cost/Income (C/I) 55.0% * i.e., continued and discontinued operations net of the sale of PTE Skarbiec-Emerytura and Vectra SA R
Slide 7: Dynamic Growth of Loans to Clients
Summary of Q1-2 2008 in the BRE Bank Group Dynamic Growth of Loans to Clients Growth of Gross Loans +6.5% +6.5% Total lending up (PLN B) by 6.5% QoQ +12.5% QoQ +2.5% QoQ +4.4% QoQ 0.5 0.1 1.9 Loans to retail clients up by 12.5% QoQ 40.4 37.9 and 62.8% YoY Loans to corporate clients up by 2.5% Qo
Slide 8: Back on Track with Growth of Deposits
Summary of Q1-2 2008 in the BRE Bank Group Back on Track with Growth of Deposits Growth Rate of Deposits (PLN B) +8.2% +8.2% Total deposits up +12.0% QoQ +4.5% QoQ +54.7% QoQ by 8.2% QoQ 0.8 0.2 1.8 Continued growth of deposits of retail clients 33.6 36.4 (up by 12.0% QoQ and up by 58.1% YoY) De
Slide 9: Results of the Business Lines
Summary of Q1-2 2008 in the BRE Bank Group Results of the Business Lines Profitability of the Business Lines Profit before Tax by Business Line Q1-2 2008 v. Q1-2 2007 (PLN M) Corporations & Financial Markets Retail Banking (+PB) +9.0% +125.3% +37.9% 251.4 230.6 186.8 174.8 126.7 82.9 Corporates and
Slide 10: Results of the Strategic Subsidiaries
Summary of Q1-2 2008 in the BRE Bank Group Results of the Strategic Subsidiaries 39.9 Profit before Tax of Consolidated Subsidiaries Profit before tax (PLN M) 30.9 of the strategic 25.3 26.2 24.0 Q1-2 2007 subsidiaries Q1-2 2008 17.5 15.1 13.9 in Q1-2 2008 12.7 11.7 9.2 6.8 5.7 6.3 5.4 5.8 up by 22%
Slide 11: Agenda
Agenda BRE Bank Group Results Q1-2 2008 BRE Bank Group: A Quarter in Brief Key Achievements and Financial Results of the Business Lines Analysis of the Consolidated Financial Results Appendix 11
Slide 12: Corporates and Financial Markets in Q1-2 2008
Results and Achievements of the Business Lines Corporates and Financial Markets in Q1-2 2008 Summary Profitability Business up by 40% YoY expansion The Line’s profit before tax Loans to enterprises at PLN 438.3 M up by 33.1% YoY in H1 2008 1 255 companies acquired in Q1-2 2008 Over 10% market share
Slide 13: Corporates and Institutions: Clients
Results and Achievements of the Business Lines Corporates and Institutions: Summary of Q1-2 2008 Clients Corporate Clients: Number and Structure Total New Corporate Banking Customers 10 033 11 442 12 285 12 678 2552 614 2495 963 K1 942 K1 969 K1 928 K1 3 721 3 827 662 3 470 K2 K2 3 179 K2 K2 613 693
Slide 14: Corporates and Institutions: Loans and Deposits
Results and Achievements of the Business Lines Corporates and Institutions: Summary of Q1-2 2008 Loans and Deposits 5.9% 5.9% 6.5% 6.5% 6.7% 8.6% 8.6% 9.3% 9.3% 10.1% Market share in Market share in loans deposits Corporate Loans Volume Corporate Deposits Volume (BRE Bank, PLN B) (BRE Bank, PLN B) 1
Slide 15: Corporates and Financial Markets: Financial Results
Results and Achievements of the Business Lines Corporates and Financial Markets: Summary of Q1-2 2008 Financial Results Financial Resultsof the Line, Q2 2008 Line’s pre-tax profit at PLN 117 M in Q2 2008 (PLN M) (-63% QoQ; net of one-off transactions 0 in Q1 2008: -30.5% QoQ) 77.1 -21.9 QoQ decr
Slide 16: BRE Bank Retail Banking in Q1-2 2008
Results and Achievements of the Business Lines BRE Bank Retail Banking in Q1-2 2008 Summary Quarterly pre tax profit Growth in Poland of the client base already exceeded Acquisition in Q1 2008: PLN 100 M in Poland: PLN 120.2 M of profit before tax 122.0 thou. clients of the Line in Q2 2008 (+5.6% Qo
Slide 17: Retail Banking: Clients, Deposits and Loans - Poland
Results and Achievements of the Business Lines BRE Bank Retail Banking: Summary of Q1-2 2008 Clients, Deposits and Loans - Poland At the end of Q1 2008 End of Q2 2008 Change End of Q1 2008 (M) 3 2 2.3 M clients +5.6% +5.6% 2.2 M 1 2.7 M accounts +6.0% 2.6 M +6.0% 0 Customers Accounts mBank (Poland)
Slide 18: Retail Banking: Mortgage Loans
Results and Achievements of the Business Lines BRE Bank Retail Banking: Summary of Q1-2 2008 Mortgage Loans Successful quarter on the mortgage loans market Record high sale of mortgage loans: PLN 1.95 B of loans granted in Q2 2008 (+43.6% YoY) for mBank and MultiBank jointly Number 2 in Poland*
Slide 19: Exploiting Synergy Potential in the BRE Bank Group
Results and Achievements of the Business Lines How can the synergy potential in the BRE Bank Group be exploited? BRE Ubezpieczenia presents the scale of this potential BRE Ubezpieczenia S.A. and BRE Ubezpieczenia Sp. z o.o. were established to provide complex insurance services for the BRE Bank Gr
Slide 20: BRE Ubezpieczenia: Developments To Date
Results and Achievements of the Business Lines BRE Bank Retail Banking: Summary BRE Ubezpieczenia: Developments To Date Investment Car Insurance BRE Wealth Go!Direct programme for Supermarket Management house insurance Private Banking Launch at launch Programme clients BRE Leasing 13 February 2006 2
Slide 21: BRE Ubezpieczenia: Products
Results and Achievements of the Business Lines BRE Bank Retail Banking: Summary BRE Ubezpieczenia: Products Direct Insurance Platform Bancassurance and Investment Programmes PPI 1 mortgage loan mBank car insurance Life insurance programme supermarket MultiBank Car Insurance BRE Wealth Management Bri
Slide 22: BRE Ubezpieczenia: Synergy Effects
Results and Achievements of the Business Lines BRE Bank Retail Banking: Summary BRE Ubezpieczenia Actual synergy effects significantly higher than expectations 13.6 Impact of insurance 6.7 commissions on Retail Banking Results (PLN M) 10.2 43.1 59.4 2006 2007 H1 2008 PLN 10.2 M +388% PLN 49.8 M +46%
Slide 23: Retail Banking (+PB): Financial Results
Results and Achievements of the Business Lines BRE Bank Retail Banking (+PB): Summary of Q1-2 2008 Financial Results Structure of the Profit before Tax of Retail Profit before Tax of the Segment Banking in Q2 2008 (by quarter**, PLN M) -21.5 mBank (PLN M) MultiBank; CZ & SK 44.7 -16 mBank 69.3 70.9
Slide 24: Agenda
Agenda BRE Bank Group Results Q1 2008 BRE Bank Group: A Quarter in Brief Key Achievements and Financial Results of the Business Lines Analysis of the Consolidated Financial Results Appendix 24
Slide 25: P&L of Continued Operations
Analysis of the Results, Q1-2 2008 P&L of Continued Operations (PLN M) Q1-2 2008 Q1-2 2007 Change YoY Total income* 1 417.3 1 052.5 +34.7% Total cost (707.4) (610.3) +15.9% Operating profit** 710.0 442.3 +60.5% Net provisions (67.9) (5.9) x 11.5 Profit before tax 642.1 436.4 +47.1% Net profit*** 587
Slide 26: Income of BRE Bank Group
Analysis of the Results, Q1-2 2008 Income of BRE Bank Group Decline of income QoQ in Q2 2008 mainly driven by high base, which included one-off gain from Vectra sale and seasonally high result of BRE.locum Excluding Vectra transaction and income of BRE.locum in Q1-Q2: income higher by 0,5% QoQ BRE B
Slide 27: Interest Income
Analysis of the Results, Q1-2 2008 Interest Income Net Interest Income, Q2 2008 by Business Line* (PLN M) +3.7% +3.7% 17.5 -3.0 -3.2 Levelling 155.9 interest margin 316.4 328.3 161.1 , Structure of Interest Income Q2 2008 (%) Management*** Retail Banking Eliminations Income in Q1 Trading and Income
Slide 28: Commission Income
Analysis of the Results, Q1-2 2008 Commission Income Net Commission Income, Q2 2008 by Business Line* Structure of Net Commission Income Q2 2008 (PLN M) (%) Guarantees +3.2% +3.2% and trade finance 6.0 Other commissions 7.1 8% and fees Brokerage fees -5.6 4% 4% Client's 92.3 accounts and money 162.1
Slide 29: Trading Income – Growth of Customer-Driven Business
Analysis of the Results, Q1-2 2008 Trading Income – Growth of Customer-Driven Business Steadily growing FX income Negative valuation of non-Treasury securities and falling prices of securities and equities resulted in negative other trading income in Q2 2008 Net Trading Income Structure FX Result St
Slide 30: Costs under Control
Analysis of the Results, Q1-2 2008 Costs under Control Overhead Costs (+Amortisation/Depreciation) of the BRE Bank Group C/I ratio** By Quarter +5.2% +5.2% of regular operations Costs, PLN M +12.6% +12.6% QoQ QoQ C/I % at 55.0% in Q1-2 2008 360 90 320 80 280 70 Overhead costs and amortisation/depr
Slide 31: Credit Provisions
Analysis of the Results, Q1-2 2008 Credit Provisions Stabilised quality of the portfolio Net provisions driven by portfolio provisions growing with the growth of the risk portfolio Net Credit and Loans Impairment Provisions BRE Bank Portfolio Quality: Comparison (consolidated data, PLN M) (%) 4,5 3,
Slide 32: The Bank Keeps a Safe Capital Adequacy Ratio
Analysis of the Results, Q1-2 2008 The Bank Keeps a Safe Capital Adequacy Ratio Relation between Capital Adequacy Ratio (CAR) Available growth in RWA as at 30.06.2008 (PLN B; LHS) and Risk Weighted Assets (RWA) RWA (PLN B, LHS) 70 12,5% CAR (%; RHS) 11,5% 60 10,5% 50 9,5% 40 8,5% 30 7,5% 6,5% 20 5,5
Slide 33: Merger of pension funds: PTE Skarbiec-Emerytura with PTE Aegon
Analysis of the Results, Q1-2 2008 Merger of pension funds: PTE Skarbiec-Emerytura (PTE S-E) with PTE Aegon Phase 1: Result on the merger of PTE PLN M Deferred tax asset PLN M 416.1 Historic cost of PTE S-E 740.4 Book value of 49.7% stake Book value of 49.7% stake 416.1 in merged PTE in merged PTE B
Slide 34: Where Are We? Actuals Year to Date v. 2008 Targets
Summary Where Are We? Actuals Year to Date v. 2008 Targets BRE Bank Group Corporates and Financial Markets Target 2008 2008 YTD Target 2008 2008 YTD (dynamics) (dynamics) (dynamics) (dynamics) Clients 1 052 393 Deposits 18.5% 12.3% Loans 17.0% 15.0% Retail Banking and Private Banking Target 2008 200
Slide 35: Summary
Summary 1 High profitability of the core business 2 Realisation of Group’s 2008 business targets is well on track 3 BRE Bank Group can grow its results thanks to synergy effects 4 Merger of pension funds executed on June 30, 2008 35
Slide 36: Appendix
Agenda Appendix —> BRE BANK SA 36
Slide 37: Appendix contents
Appendix Slide No. Slide No. Detailed Results of the Business Lines– slides No. 38-76 BRE Bank Retail Banking 38-49 Corporates & Institutions 50-55 Deposits and Investment Funds 39 Loans and Deposits 50 Savings 40 Loans and Deposits: Market Share 51 eBroker, Brokerage Service 41 Cash Management 52 R
Slide 38: Detailed Results of the Business Lines, Q1-2 2008
Appendix Detailed Results of the Business Lines, Q1-2 2008 38
Slide 39: 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: 3.7% BRE Bank Retail Banking Line 1.3% 1.7% 2.1% 2.6% 3.1% continues 15 400 to grow 350 12,5 300 above the market 10 250 7,5 200 150 5 BRE Bank (LHS) 100 Market (RHS) 2,5 50 2003
Slide 40: Retail Banking: Savings
Appendix BRE Bank Retail Banking: Savings BRE Bank customers quickly react to changing conditions on the financial market Debt Investment Fund Assets Structure Securities At Quarter End of Investment 5% (PLN M) Funds Assets 2 904 Money 2 719 2 434 Market Equity 11% 2 002 1 819 62% 1 588 1 536 1 245
Slide 41: mBank – eBroker, MultiBank – Brokerage Service
Appendix BRE Bank Retail Banking: mBank – eBroker, MultiBank – Brokerage Service Dynamic growth Opened Investment Accounts (thou., incremental) 96 of brokerage services 83 90 for Retail Banking 62 74 customers 46 34 37 28 24 17 15 14 14 In June 2008, eMakler trading reached PLN 2 3 4 5 7 9 11 12 1
Slide 42: Retail Banking v. the Market: Loans
Appendix BRE Bank Retail Banking v. the Market: Loans BRE Retail Banking Loans 2008: (PLN B) 5.6% 1.2% 2.1% 3.0% 4.5% 5.2% 15 250 BRE Retail Banking 12,5 200 loans portfolio 10 up to PLN 16.3 B 150 7,5 100 Market share in retail loans 5 up to 5.6% 2,5 2003 2004 2005 2006 2007 50 at the end of June 2
Slide 43: Retail Banking v. the Market: Mortgage Loans
Appendix BRE Bank Retail Banking v. the Market: Mortgage Loans Until the end of June 2008 we sold over PLN 3 417 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-May 2008 (PLN B) (PLN B) 9.9%
Slide 44: 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 30.06.2008 6% 8% Total PLN FX 3% Balance-sheet value 13.13 2.36 10.76 (PLN
Slide 45: Acquisition of Microenterprises
Appendix BRE Bank Retail Banking: Acquisition of Microenterprises 264.4 thousand microenterprises served by BRE Bank Retail Banking Number of served microenterprises Number of Microenterprises up by 13.3 thousand in Q2 2008 Served by BRE Bank Retail Banking (thou.) PLN 1,544.7 M of loans granted
Slide 46: Growth of Sales, Q2 2008
Appendix BRE Bank Retail Banking: Growth of Sales, Q2 2008 mBank Clients Deposits Loans (thou.) +26.8% (PLN M) +62.2% (PLN M) +64.2% 101 762 634 104 835 1201,8 104 505 64 964 711 72 1834 9 593 530 6 868 85 752 1629 16 609 5 399 617 7 629 1290 3 043 5 314 06 07 07 08 07 07 07 08 08 06 07 08 07 06 07
Slide 47: 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 48: 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 35 46 72 84 93 101 101 109 113 122 49 44 46 44 44 56 225 41 139 41 38 27 34 4 10 4 13 73 61 61 64 57 57 65 67 42 52
Slide 49: mBank in Czech and Slovakia
Appendix BRE Bank Retail Banking: mBank in Czech and Slovakia At the end of Q2 2008 End of Q2 2008 Change End of Q1 2008 (thou.) 250 200 150 134.5 thou. clients +57.7% 85.3 thou. +57.7% 100 50 210.5 thou. accounts +64.7% 127.8 thou. +64.7% 0 Customers Accounts (EUR M) (EUR M) 40 500 400 30 496.3 M d
Slide 50: Corporates and Institutions: Loans and Deposits
Appendix Corporates and Institutions: Loans and Deposits 8% Corporate Loans Volume Corporate Deposits Volume (BRE Bank, PLN B) (BRE Bank, PLN B) 9.2 10.4 11.8 12.2 12.7 14.4 14.6 16.2 16.6 19.7 18.2 19.7 17.6 18.2 10% 14% 11% 11% 13% 13% 10% 8% 9% 9% 9% 41% 36% 42% 42% 39% 8% 42% 37% 8% 7% 56% 58% 5
Slide 51: Loans and Deposits – Market Share
Appendix Corporates and Institutions: Loans and Deposits – Market Share BRE Bank’s Market Share in Corporate Loans and Deposits* Corporate Deposits Volume 12,0% (BRE Bank only, PLN B) 10.1% 10.1% 10,0% 14.0 12.9 12.7 13.3 12.5 10.7 10.9 8,0% 6.7% 6.7% 6,0% Source: NBP reports Coprorate deposits Corp
Slide 52: 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 +30.0% +30.0% +53.0
Slide 53: 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 54: Good Market for Leasing and Factoring
Appendix Corporates and Institutions: Good Market for Leasing and Factoring BRE Leasing Intermarket Group Leasing contracts written in Q2 2008 Pre-tax profit of Intermarket Group companies* at a total of PLN 1.0 billion, at PLN 28.1 M after Q2 2008 (+7% YoY); up by almost 21% YoY and up by over
Slide 55: BRE Bank Hipoteczny (BBH)
Appendix Corporates and Institutions BRE Bank Hipoteczny (BBH) Loans Portfolio (PLN M) Profit before Tax (PLN M) Balance-sheet Exposure 81 73 86 574 95 100 569 562 108 511 118 466 190 427 Housing Loans** +37.1% +37.1% 399 213 2942 42.4 2 386 2595 2700 Local 24.0 2 196 1 643 1 775 1 967 Gov ernment L
Slide 56: Dom Inwestycyjny BRE Banku (DI BRE)
Appendix Corporates and Institutions Dom Inwestycyjny BRE Banku (DI BRE) Number of Accounts with DI BRE - End of Q2 2008 Profit before tax at PLN 15.1 M after Q2 2008 (ROE after Q2 (thousand) 2008 at 84%) compared to PLN 30.9 M after Q2 2007 and PLN 53.9 M in 2007 (ROE in 2007 at 156%). DI BRE acc
Slide 57: 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 30.06.2008 (PLN M) Market 14 743,2 13 898,4 BRE Bank 16.5% 24.1% 11 769,0 3 746,8 2 573,0 2 799,6 Treasury IRS/FRA Bills and Bond
Slide 58: Proprietary Investments Portfolio
Appendix Trading and Investments Proprietary Investments Portfolio At the end of Q2 2008, Major Equity Investments Equity Stake the portfolio under management at 30.06.2008 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 59: Additional Information: Selected Financial Data
Appendix Additional Information: Selected Financial Data 59
Slide 60: Consolidated Profit and Loss Account under IFRS
Appendix Additional Information: Selected Financial Data Consolidated Profit and Loss Account under IFRS PLN’000 By quarter * Q2 2007 Q3 2007 Q4 2007 Q1 2008 Q2 2008 Net interest income 241 394 267 770 291 083 315 346 326 895 Net commission income 146 631 139 004 135 721 150 441 155 008 Dividend inc
Slide 61: 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 326.9 M in Q2 2008 v. PLN 315.3 M in Q1 2008 840 10 Other 790 8 52 and PLN 241.4 M in Q2 2007 740 57 1 690 41
Slide 62: Net Commission Income
Appendix Additional Information: Selected Financial Data Net Commission Income Net commission income in Q2 2008 Commission Income Structure (consolidated data, PLN M) up by 3.0% QoQ; and up by 5.7% YoY 240 The largest net commission income item 220 Other – lending fees – up by 39.2% QoQ 200 44 a
Slide 63: Trading Income
Appendix Additional Information: Selected Financial Data Trading Income Trading Income Structure Trading Income Structure (by quarter, consolidated data, PLN M) (%) Q2 2008 160 Risk & Liquidity 140 6.9% Trading & 120 Origination 10.9% 100 80 Customer 60 Driven Transactions 82.2% 40 Q1 2008 20 Risk &
Slide 64: Overhead Cost Structure
Appendix Additional Information: Selected Financial Data Overhead Cost Structure Structure of Overhead Costs C/I of the BRE Bank Group* (+Amortisation/Depreciation) (%) by quarter, PLN M, consolidated data 400 58.0 58.1 7.7 12.3 56.9 360 10.3 8.7 41.4 320 8.9 48.3 45.4 280 45.4 49.9 46.6 135.2 240 1
Slide 65: Loans and Deposits
Appendix Additional Information: Selected Financial Data Loans and Deposits Loans Deposits (PLN B) (PLN B, net) +36.7% +36.7% +24.1% +24.1% 37.2 39.7 33.7 33.6 36.4 31.6 32.4 29.0 29.3 29.0 +9% +9% +7% +7% +11% +11% +7% +7% -1% -1% +12% +12% +4% +4% +8% +8% 30.06.07 30.09.07 31.12.07 31.03.08 30.06.
Slide 66: 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) 65 5.5 9% 60 3.2 5% 40 0.6 2% 55 8% 3.9 7% 3.9 6% 0.6 2% 4.4 5.2 8% 35 8% 6.4 8% 0.6 2% 50 4.1 3.7 7% 2.6 4% 4
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) 65 60 5.7 9% 40 5.7 9% 6% 3.9 55 9% 6% 3% 0.3 1% 4.9 3.7 2.2 35 6% 4% 0.2 1% 50 4.1 8% 3.4 2.7 0.7 2% 4 8% 3.3 6% 2.9 5% 30 45 16.5 0.1 0% 0.2 1
Slide 68: Liquidity
Appendix Additional Information: Selected Financial Data Liquidity The ratio of loans to deposits at 109.1%... … but analysis of the loans portfolio and its funding reveals that the actual ratio of loans to deposits is 75.3% Ratio of Loans to Deposits in the BRE Bank Group Structure of Financing Loa
Slide 69: 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 I kw. 2008 II kw. 2008 (PLN M) Basel I Basel II Basel II Basel II Credit risk 2 998 2 896 3 218 3 428 Market risk 93 123 125 79 Operational risk
Slide 70: 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. 8.5% 7.2% 5.9% 5.6% 5.5% 4.8% 4.4% 4.6% 3.6% 3.6% 3.4% Quality of the Loans 3.9
Slide 71: Why Are Net Provisions Up?
Appendix Why Are Net Provisions Up? Change of average PD in the credit portfolio v. portfolio provisions Retail Portfolio 0,60% 30 000,00 Levelling probability of default (PD) 27 000,00 combined with portfolio growth result 0,50% 24 000,00 in steady growth of portfolio provisions Profision in PLN
Slide 72: NPLs: Portfolio Structure
Appendix Additional Information: Selected Financial Data NPLs: Portfolio Structure* The share of NPLs in the portfolio (balance-sheet) remained stable 30.06.2008 31.03.2008 31.12.2007 Expo- % Provi- Expo- % Provi- Expo- % Provi- sure sions % sure sions % sure sions % PLN B coverage PLN B coverage PL
Slide 73: Macroeconomics
Appendix Macroeconomics GER BRE BANK SA 73
Slide 74: Macroeconomics: GDP and Labour Market
Appendix Macroeconomics: GDP and Labour Market Mild decline of GDP growth rate, GDP growth factors (%) fast rising wages, Consumption Investment Net exports Others GDP falling unemployment 10 8 The GDP growth rate has been falling for four quarters, 6 but the decline has been relatively mild. GDP
Slide 75: Macroeconomics: Inflation and NBP Interest Rates
Appendix Macroeconomics: Inflation and NPB Interest Rates CPI (% YoY), RPP inflation target Rising inflation , NBP intervention rate (%) interest rates, 7% CPI and debt market yields 6% NBP The CPI grew to 4.6% YoY in June 2008 and continued 5% to rise. It is driven mainly by high food and oil pri
Slide 76: Macroeconomics: Loans and Deposits in the Banking Sector
Appendix Macroeconomics: Loans and Deposits in the Banking Sector Corporations Fast rising household desposits, bank loans and avances to clients 35 30 Deposits Loans down modestly 25 20 Household deposits grew by 22.6% YoY at the end of 15 10 Q2 2008, the highest growth rate since 1999.The 5 grow
Slide 77: 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: