Mbank Sa · GPW:MBK
Mbank Sa — BRE Bank — Q1-3 2007 Earnings Presentation
72 slides from Mbank Sa's earnings presentation, Oct 29, 2007
Slide 1: BRE Bank Group Results Q1-3 2007
BRE Bank Group Results Q1-3 2007 High Profitability and mBank’s Transborder Expansion BRE Bank SA Management Board Presentation for Investors and Analysts 29 October 2007 1
Slide 2: Agenda
Agenda Introduction Summary of Q1-3 2007 Results BRE Bank’s Q1-3 2007 Results Business Line Results and Highlights Analysis of Q1-3 2007 Financial Results mBank’s Transborder Expansion Appendix Business Lines Results and Highlights Additional Information: Selected Financial Data Macroeconomics 2
Slide 3: Agenda
Agenda Introduction Summary of Q1-3 2007 Results BRE Bank’s Q1-3 2007 Results Business Line Results and Highlights Analysis of Q1-3 2007 Financial Results mBank’s Transborder Expansion Appendix Business Lines Results and Highlights Additional Information: Selected Financial Data Macroeconomics 3
Slide 4: Summary of Q1-3 2007
Summary of Q1-3 2007 1 High profitability on regular business 2 Dynamic growth in lending and deposits 3 mBank’s expansion to the Czech Republic and Slovakia 4
Slide 5: Summary of Q1-3 2007: High Profitability of Regular Business Operations
Summary of Q1-3 2007 High Profitability of Regular Business Operations continued and discontinued operations Profit before tax PLN 749.8 M ROE before tax 37.8% continued operations Profit before tax PLN 646.6 M ROE before tax 32.6% Cost/Income (C/I) 56.9% Capital adequacy ratio (CAR) 10.26% All pres
Slide 6: Regular growth of profitability
Summary of Q1-3 2007 High Profitability of Regular Business Operations Regular growth of profitability Quarterly financial results continued and discontinued operations (PLN M) 254.0 89.5 233.7 178.8 181.1 161.7 71.2 164.3 149.9 132.2 125.6 115.2 101.5 213.3 151.5 Operating profit before provisionin
Slide 7: Dynamic Growth in Loans to Customers
Summary of Q1-3 2007 Dynamic Growth in Loans to Customers Gross loans to customers Growth in Gross Loans +37.8% +37.8% (PLN M) up 37,8% YoY, 35 +65.3% YoY +29.0% YoY -19.5% YoY including: 30 4.2 -0.3 25 5.0 Loans granted to retail customers 20 grew by 65.3% year on year 15 32.5 23.6 and by 11.5% q
Slide 8: Deposits
Summary of Q1-3 2007 Deposits Growth in Deposits (PLN M) +27.6% +27.6% +28.1% +27.5% +9.9% Total deposits 35 YoY YoY YoY 30 0.02 up 27.6% YoY, 2.5 3.7 3,7 25 20 mainly including: 15 10 22.8 29.0 Dynamic growth in corporate customers’ deposits 5 (up by 27.5% YoY) 0 30.09.2006 Individual clients Cor
Slide 9: Growing Profitability of Business Lines
Summary of Q1-3 2007 Business Line Results Growing Profitability of Business Lines Corporations Retail Banking and Financial Markets (+PB) Profit before tax by Business Line Q1-3. 2007 vs Q1-3 2006 (PLN M) +56.5% +1.1% +199.8% 350.0 223.6 197.7 98.0 99.1 65.9 Corporates and Insitutions Trading and I
Slide 10: Strategic Subsidiaries Results
Summary of Q1-3 2007 Strategic Subsidiaries Results 43.3 Profit before Tax of Consolidated Subsidiaries (PLN M) Profit before tax 36.9 31.4 Q1-3 2006 of strategic 28.0 Q1-3 2007 21.3 subsidiaries 16.9 18.5 18.1 17.8 15.5 13.6 up by nearly 10.0 8.0 8.5 8.8 7.9 4.3 4.4 4.1 3.5 20% YoY -1.3-2.5 nk r RE
Slide 11: Agenda
Agenda Introduction Summary of Q1-3 2007 Results BRE Bank’s Q1-3 2007 Results Business Line Results and Highlights Analysis of Q1-3 2007 Financial Results mBank’s Transborder Expansion Appendix Business Lines Results and Highlights Additional Information: Selected Financial Data Macroeconomics 11
Slide 12: Corporations and Financial Markets: Summary
Business Line Results and Highlights, Q1-3 2007 Corporations and Financial Markets: Summary Growing Business Profitability Expansion Corporate loans Profit before tax in Q1-3 2007 up 32.6% YTD up 39.6% YoY Significant growth of loans to PLN 449.1 M co-financed by EU (+146.3% YTD) Number of corporate
Slide 13: Corporates and Institutions: Clients Acquisition
Business Line Results and Highlights, Q1-3 2007 Corporates and Institutions: Clients Acquisition Corporate Customers Total New Corporate Banking Customers Number and Structure +10.4% 10 033 11 442 12 343 848 2552 987 K1 970 K1 1917 928 K1 3679 662 3 470 557 K2 3 179 K2 K2 649 613 498 606 5 926 7 003
Slide 14: Corporations and Financial Markets: Financial Results
Business Line Results and Highlights, Q1-3 2007 Corporations and Financial Markets: Finanacial Results Line’s Fiinancial Results Q1-3 2007 The Line’s profit before tax (PLN M) Net fee and was up by 39.6% YoY in Q1-3 2007 Net interest commission Net trading Impairement Costs and and stood at PLN 44
Slide 15: BRE Retail Banking: Summary
Business Line Results and Highlights, Q1-3 2007 BRE Retail Banking: Summary Growing Fast Growth Contribution of Customer Base to Group Profit 289.7 thou. new customers (+18% YTD) (incl. 33.2 thou. microenterprises) The highest dynamics of profit growth among all business lines: and PLN 197.7 M profi
Slide 16: BRE Bank Retail Banking: Summary
Business Line Results and Highlights, Q1-3 2007 BRE Bank Retail Banking: Summary At the end of Q3 2007 2500 (thou.) End of Q3 2007 Change End of Q2 2007 2000 1.92 1.92MM +5.4% 1.82 1.82MM +5.4% 1500 customers customers customers customers 1000 2.27 2.27MM 2.15 2.15MM 500 accounts +5.6% +5.6% account
Slide 17: Retail Banking (+PB): Financial Results
Business Line Results and Highlights, Q1-3 2007 Retail Banking (+PB): Financial Results Structure of Retail Banking Segment’s Profit before Tax MultiBank; 69.3 70.9 Profit before Tax, (by quarter*, PLN M) 65.7 Q1-3 2007 57.5 (PLN M) 47.3 43.6 Other; -8.2 11.1 11.5 mBank; PB; 21.3 118.9 Q1 06 Q2 06 Q
Slide 18: Structure of BRE Bank Group's Profit
Business Line Results and Highlights, Q1-3 2007 Structure of BRE Bank Group’s Profit 873; 523; 57% Income Cost 59% 515; 317; 33% 35% 156; 10% 57; 6% Result/Gross Profit 54.1% Corporates and Institutions 350 Corporates and Markets Trading and Investments 15.3% 99 Retail Banking 198 30.6% (+PB) All da
Slide 19: Agenda
Agenda Introduction Summary of Q1-3 2007 Results BRE Bank’s Q1-3 2007 Results Business Line Results and Highlights Analysis of Q1-3 2007 Financial Results mBank’s Transborder Expansion Appendix Business Lines Results and Highlights Additional Information: Selected Financial Data Macroeconomics 19
Slide 20: Profit & Loss Account of Continued Operations
Analysis of Q1-3 2007 Results Profit & Loss Account of Continued Operations Q1-3 2007 (PLN M) Change YoY Change QoQ *** Total income* 1 596.3 +36.3% -1.5% Total costs (909.0) +20.0% -7.2% Operating profit** 687.3 +66.0% +6.6% Net provisions (40.7) +1.1% +/- Profit before tax 646.6 +73.1% -8.9% Net p
Slide 21: Significant Growth in Core Business Income
Analysis of Q1-3 2007 Results Significant Growth in Core Business Income Steady growth in net interest income, modest decrease in net commission income The net interest income, the largest BRE Bank Group Income income item, grew quarter by quarter: Q3 2007 v. Q2 2007 (PLN M) it was PLN 267.8 milli
Slide 22: Costs Under Control
Analysis of Q1-3 2007 Results Costs Under Control C/I* ratio at 56.9% in Q1-3 2007 Overhead Costs (+Amortisation/Depreciation) Overhead costs were PLN 252.2 million of the BRE Bank Group by Quarter in Q3 2007, down by 8.8% quarter on quarter -7.2% Depreciation/Amortisation Costs -7.2% C/I was up
Slide 23: CAR Is No Constraint to Business Expansion
Analysis of Q1-3 2007 Results CAR Is No Constraint to Business Expansion Relation between the Capital Adequacy Ratio (CAR) Dynamic growth and Risk-Weighted Assets (RWA) in consolidated risk-weighted assets (RWA): 50 13% up by PLN 8.7 billion or 30.5% 45 year to date 40 12% The consolidated capit
Slide 24: Credit Provisions
Analysis of Q1-3 2007 Results Credit Provisions Further improvement in the quality of the loans portfolio Net provisions driven by impairment provisions growing due to growth of the risk portfolio Net Credit and Loans Impairment Provisions (consolidated data, PLN M) Net credit and loans impairment
Slide 25: Why Are Net Provisions Growing?
Analysis of Q1-3 2007 Results Why Are Net Provisions Growing? Default portfolio: created and released provisions PLN M 60 Q1 2007 Q2 2007 Q3 2007 PLN M 15 Decreasing defaul loans portfolio allows for less provisions released 40 Stable probability 10 20 0 5 of default (PD) ratio combined with a g
Slide 26: Agenda
Agenda Introduction Summary of Q1-3 2007 Results BRE Bank’s Q1-3 2007 Results Business Line Results and Highlights Analysis of Q1-3 2007 Financial Results mBank’s Transborder Expansion Appendix Business Lines Results and Highlights Additional Information: Selected Financial Data Macroeconomics 26
Slide 27: mBank in the Czech Republic and Slovakia: Products Release Sequence
mBank’s Transborder Expansion mBank in the Czech Republic and Slovakia: Products Release Sequence Q4 2007 Q1 2008 Products to be offered Products to be offered Current Account Mutual funds Credit cards with insurance Savings Account Term deposits with fixed interest rate Mortgage products Internet p
Slide 28: mBank in the Czech Republic and Slovakia: Key Business Targets
mBank’s Transborder Expansion mBank in the Czech Republic and Slovakia: Key Business Targets No. of clients (thou.) >250 Loans portfolio Targets (EUR B) >1.2 by 2010 Deposits (EUR M) >300 mBank’s sales 12 Financial Centres network 18 mKiosks (The Czech Rep.) Targets mBank’s sales 6 Financial Centres
Slide 29: mBank in the Czech Republic and Slovakia: Key Financial Targets
mBank’s Transborder Expansion mBank in the Czech Republic and Slovakia: Key Financial Targets Total 29 M investment EUR First year of complete profitability 2012 29
Slide 30: Summary of Q1-3 2007
Summary of Q1-3 2007 1 High profitability: 32.6% ROE (pre-tax) on regular business 2 Portfolio of loans and deposits growing well above the market 3 mBank’s expansion to the Czech Republic and Slovakia will be a fact this November 30
Slide 31: Agenda
Agenda Introduction Summary of Q1-3 2007 Results BRE Bank’s Q1-3 2007 Results Business Line Results and Highlights Analysis of Q1-3 2007 Financial Results Appendix Detailed Business Lines Results and Highlights: Additional Information: Selected Financial Data Macroeconomics 31
Slide 32: Agenda
Agenda Appendix Detailed Business Lines Results and Highlights: Retail Banking and Private Banking Corporations and Financial Markets Additional Information: Selected Financial Data Macroeconomics 32
Slide 33: BRE Retail Banking: Savings
Appendix BRE Retail Banking: Savings BRE Bank customers quickly react to changing conditions on the financial market Investmet Fund Assets Structure at Quarter End of Investment 2 904 Debt (PLN Mł) 2 719 Funds Assets Equity securities 69.0% 3.9% 2 002 1 588 Monetary 1 245 7.2% 995 1 077 Hybrid Q1 06
Slide 34: 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) 2007* BRE Bank’s 1.3% 1.7% 2.1% 2.5% 3.0% Retail Banking Line continues 12,5 400 to grow 10 350 above 300 250 the market 7,5 200 5 150 100 2,5 50 2003 2004 2005 2006 2007 0 0 BRE Bank
Slide 35: BRE Bank Retail Banking: Investment Funds
Appendix BRE Bank Retail Banking: Investment Funds MultiBank Structure of Assets: MultiBank Investment Fund Assets MultiBank Investment Funds at Quarter End (PLN M) Investment fund assets changed by PLN 288.2 m in 2007 Debt 713 661 securities 3% The share of equity funds in assets of Monetary 5%
Slide 36: Retail Banking: mBank eBroker, MultiBank Brokerage Service
Appendix BRE Bank Retail Banking: mBank – eBroker, MultiBank – Brokerage Service Dynamic growth Opened 74.4 Investment of brokerage services Accounts 62.3 for retail (thou.) 46.1 customers 34.2 37.3 28.1 23.5 eBroker trading exceeded PLN 381.7 M 14.1 17.3 9.4 11.0 5.3 6.7 in September 2007, 1.6 2.
Slide 37: Retail Banking v. the Market: Loans
Appendix BRE Bank Retail Banking v. the Market: Loans Loans (PLN B) 2007 5.2% 15 1.2% 2.1% 3.0% 4.4% 250 Retail portfolio up PLN 4 B 12,5 (to PLN 12.2 B), 200 10 resulting in improvement 7,5 150 of market share 100 in retail loans 5 50 to 5.2% 2,5 2003 2004 2005 2006 2007 0 0 n n n n I VI ec ec ec e
Slide 38: Retail Banking v. the Market: Housing Loans
Appendix BRE Bank Retail Banking v. the Market: Housing Loans In Q1-3 2007 we sold PLN 4.2 B on new mortgage loans, remaining one of the leaders on the market Mortgage Loans: Market Leaders Housing Loans by value of sales (PLN B) Jan-Aug 2007 (PLN B) 2007 2.9% 5.1% 6.5% 9.0% 9.5% 10 100 9.4 8 80 6 6
Slide 39: 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 Loans Portfolio (Retail Morgage Loans to individuals) (Household Loans) as at 30 September 2007 5% 6% Total PLN FX 4% Balance-sheet value 9.9 1.8 8.1 (PLN B)
Slide 40: Retail Banking: Car Insurance Supermarket
Appendix BRE Bank Retail Banking: Car Insurance Supermarket ’The Car Insurance Supermarket is hard to beat’ Newsweek ‘’mBank has the most attractive offer’ Pentor Research International The Car Insurance Supermarket was launched on 13 February 2007 18 356 cars insured (at 30 September 2007) Comp
Slide 41: Retail Banking: Acquisition of Microenterprises
Appendix BRE Bank Retail Banking: Acquisition of Microenterprises 218.8 thousand microenterprises served Number of Microenterprises Served by BRE Bank Retail Banking Line by BRE Bank Retail Banking (thou.) 59.1 55.4 53.2 46.0 48.0 50.8 12.2 thousand microenterprises 42.5 39.0 acquired in Q3 2007 2
Slide 42: Retail Banking: Growth of Sales, Q3 2007
Appendix BRE Bank Retail Banking: Growth of Sales, Q3 2007 mBank Customers Deposits Loans (thou.) +18.2% (PLN M) +25.6% (PLN M) +60.7% 711 752 78 530 72 617 -16 609 85 4 894 6 665 1 525 4183 64 1447 270 5314 5913 562 3043 63 1290 1290 328 3043 337 556 76 1140 4035 257 1015 05 06 06 06 06 07 07 07 07
Slide 43: Retail Banking: Growth of the Distribution Network
Appendix BRE Bank Retail Banking: Growth of the Distribution Network mBank Distribution Network MultiBank Branches Total: Total: 7 24 54 56 61 62 65 67 75 83 35 46 72 82 83 84 84 93 102 102 44 44 225 41 139 38 38 38 38 34 4 10 4 13 22 56 58 52 58 58 40 42 46 47 50 52 38 44 45 46 46 31 33 7 2 14 14 1
Slide 44: Agenda
Agenda Appendix Detailed Business Lines Results and Highlights Retail Banking and Private Banking Corporations and Financial Markets Corporates and Institutions Trading and Investments Additional Information: Selected Financial Data Macroeconomics 44
Slide 45: Corporates and Institutions: Newly Acquired Customers
Appendix Corporates and Institutions: Newly Acquired Customers 1 881 new corporate customers Total New Corporate Customers 1 881 acquired in 1-3Q 2007, 1 704 i.e. 10.4% more than in 1-3Q 2006, +10.4% +10.4% of those, 74% were K3 customers and 22% were K2 customers There were 12,343 corporate cus
Slide 46: Corporates and Institutions: Loans and Deposits
Appendix Corporates and Institutions: Loans and Deposits 8% Corporate Loans Corporate Deposits (BRE Bank, PLN B) (BRE Bank, PLN B) 12.2 19.7 11.8 18.2 11.0 16.2 16.6 10.4 10.1 9.6 9.2 14.3 9.1 34% 34% 49% 8.4 52% 12.9 53% 12.7 34% 53% 48% 10.9 39% 7.3 37% 10.7 9.2 57% 56% 58% 58% 57% 39% 42% 37% 41%
Slide 47: Corporates and Institutions: Loans and Deposits Market Share
Appendix Corporates and Institutions: Loans and Deposits: Market Share BRE Bank’s Market Share in Corporate Loans and Deposits* 12% 10% 8% 6% Source: NBP reports 4% Jan-05 Feb-05 Mar-05 May-05 Jun-05 Jul-05 Oct-05 Nov-05 Dec-05 Jan-06 Feb-06 Mar-06 May-06 Jun-06 Jul-06 Oct-06 Nov-06 Dec-06 Jan-07 Fe
Slide 48: Corporates and Institutions: Cash Management
Appendix Corporates and Institutions: Cash Management Cash Management – Strategic Product Line Supporting Long-term Customer Relations Direct Debits Identification of Mass Payments Identification of Trade Payments (thou. transactions) (M transactions) (thou. transactions) 76.1% 76.1% +35.8% +35.8% =
Slide 49: Foreign Trade Service and Risk Management Products
Appendix Corporates and Institutions: Foreign Trade Service and Risk Management Products The market position in foreign trade service The profit on sales of financial instruments and the launch of many innovative product solutions to corporate customers helped to grow the revenue was PLN 76.8 M
Slide 50: Good Market for Leasing and Factoring
Appendix Corporates and Institutions: Good Market for Leasing and Factoring BRE Leasing Intermarket Group Value of leasing contracts The pre-tax profit of Intermarket Group companies executed in Jan-Sept 2007: PLN 2.2 B; was PLN 38.1 M in Jan-Sept 2007; up by almost 34% YoY the pre-tax profit of
Slide 51: BRE Bank Hipoteczny (BBH)
Appendix Corporates and Institutions: BRE Bank Hipoteczny (BBH) Loans Portfolio (PLN M) Profit before Tax (PLN M) Balance-sheet Exposure 95 100 -10.8% -10.8% 118 108 511 +24% +24% 466 Housing 190 427 loans* 31.4 399 28.0 213 22.5 Local 2196 2386 government 1 775 1 967 loans 1 643 Commercial loans 31
Slide 52: Dom Inwestycyjny BRE Banku (DI BRE)
Appendix Corporates and Institutions: Dom Inwestycyjny BRE Banku (DI BRE) DI BRE Accounts (thou.) DI BRE profit before tax PLN 43.3 M year to date DI BRE accounts 22.9 (up by 134% YoY) eBroker (mBank) 74.4 DI BRE equities trading Brokerage Service (MultiBank) 11.0 at PLN 23.9 B in Q3 2007 TOTAL
Slide 53: Agenda
Agenda Appendix Detailed Business Lines Results and Highlights Retail Banking and Private Banking Corporations and Financial Markets Corporates and Institutions Trading and Investments Additional Information: Selected Financial Data Macroeconomics 53
Slide 54: Trading and Investments: Market Share and Position
Appendix Trading and Investments: Market Share and Position BRE Banku’s Market Share* BRE Bank in the Market in Investment Banking Services of Non-Treasury Debt** (BRE – in navy blue) As at 30 August 2007 (PLN M) 12 402.2 Market BRE Bank 10 811.2 17.0% 18.6% 38.0% 8 293.9 2 682.2 2 079.6 1 988.5 T-b
Slide 55: Trading and Investments: Proprietary Investments
Appendix Trading and Investments: Proprietary Investments At the end of Q3 2007, Major Propietary Investments Equity stake the Bank’s proprietary investments as at 30 September 2007 portfolio was Vectra SA* 19.95% PLN 278 M at cost PZU SA 0.76% The portfolio at cost Garbary Sp. z o.o. 100.00% wa
Slide 56: Agenda
Agenda Appendix Detailed Business Lines Results and Highlights 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 an
Slide 57: Consolidated Profit and Loss Account under IFRS
Appendix Additional Information: Selected Financial Data Consolidated Profit and Loss Account under IFRS PLN’000 Q3 2006 Q4 2006 Q1 2007 Q2 2007 Q3 2007 By quarter * Net interest income 194 128 198 777 227 536 241 394 267 770 Net commission income 104 699 127 712 142 857 146 631 139 004 Dividend inc
Slide 58: Net Interest Income
Appendix Additional Information: Selected Financial Data Net Interest Income Structure of Net Interest Income The consolidated net interest income (consolidated figures, PLN M) was up by 10.9% QoQ in Q3 2007 and up by 37.9% YoY in Q1-3 2007 650 Other 600 46 8 The largest item, 550 9 34 500 the n
Slide 59: Interest Income Structure
Appendix Additional Information: Selected Financial Data Interest Income Structure Structure of Net Interest Income Net Interest Income, Q3 2007 Q3 2007 by Business Line (consolidated figures, %) (consolidated figures, PLN M) Debt securities 11.1 held for trading -3.4 -0.2 7% Loans and 148.4 advance
Slide 60: Net Commission Income
Appendix Additional Information: Selected Financial Data Net Commission Income The net commission income in Q3 2007 Structure of Net Commission Income was down modestly quarter on quarter (consolidated figures, PLN M) (down 5.2%) 220 but up by 48.4% year on year Other 200 The commission income was
Slide 61: Commission Income Structure
Appendix Additional Information: Selected Financial Data Commission Income Structure Structure of Net Commission Income Net Commission Income, Q3 2007 Q3 2007 by Business Line (consolidated figures, %) (consolidated figures, PLN M) Other Brokerage 17% Guarantees 7.4 0.4 fees granted and 14% trade fi
Slide 62: Overhead Cost Structure
Appendix Additional Information: Selected Financial Data Overhead Cost Structure Structure of Overhead Costs BRE Bank Group’s C/I (+Amortisation/Depreciation) by quarter, PLN M, consolidated figures (based on average balances) 8.7 320 6.6 7.1 8.9 64.0 63.7 6.9 45.4 280 43.6 43.0 46.6 58.0 41.7 57.7
Slide 63: Loans & Deposits
Appendix Additional Information: Selected Financial Data Loans & Deposits Loans Deposits (PLN B) (PLN B) +39.5% +39.5% +27.6% +27.6% 31.6 29.3 29.0 29.0 24.7 26.7 25.8 22.7 22.7 23.0 +2% +2% +12% +12% +12% +12% +9% +9% +8% +8% +8% +8% +10% +10% -1% -1% 30.09.06 31.12.06 31.03.07 30.06.07 30.09.07 30
Slide 64: Balance Sheet Analysis: Assets
Appendix Additional Information: Selected Financial Data Balance Sheet Analysis: Assets Structure of Assets Credits and Loans to Customers* (PLN B) Portfolio by Customer Category (PLN B) 55 35 50 0.8 25% 12 23% 0.9 3% 45 30 12.1 1.0 3% 40 10.0 22% 3% 22% 27% 1.6 1.8 3% 25 1.3 0.5 4% 12.7 11.6 1.5 3%
Slide 65: Balance Sheet Analysis: Liabilities
Appendix Additional Information: Selected Financial Data Balance Sheet Analysis: Liabilities Structure of Liabilities Structure of Deposits (PLN B) (PLN B) 55 30 0.1 0% 0.2 1% 50 8% 4.1 8% 0.2 1% 4 6% 45 8% 6% 3.3 0.2 1% 9% 3.6 3.1 3.4 7% 25 0.2 3.6 6% 7% 1% 40 8% 2.8 3.5 3.1 6% 8% 6% 2.6 3.6 35 2.5
Slide 66: Structure of BRE Bank's Risk Portfolio
Appendix Additional Information: Selected Financial Data Stucture of BRE Bank’s Risk Portfolio Sustained high ratio of provisions to the default portfolio; falling share of irregular loans in the loans portfolio 11.8% 10.8% 9.2% 8.5% 7.2% 5.9% 5.6% 5.5% 4.8% 4.4% 4.6% Quality of loans and default 4.
Slide 67: Non-performing Loans: Portfolio Structure
Appendix Additional Information: Selected Financial Data Non-performing Loans: Portfolio Structure* Steadily decreasing share of NPLs in the loans portfolio (balance-sheet) 30.09.2007 31.12.2006 31.12.2005 Steady Exposure % Provisions Exposure % Provisions Exposure % Provisions PLN B % PLN B % PLN B
Slide 68: Agenda
Agenda Appendix Detailed Business Lines Results and Highlights Additional Information: Selected Financial Data Macroeconomics 68
Slide 69: Macroeconomics: GDP and Labour Market
Appendix Macroeconomics GDP and Labour Market 10 Others Growing domestic demand 8 Net exports Investment the main driven Consumption 6 GDP of GDP growth 4 2 0 GDP growth was 7.1% in H1 2007 -2 and should be close to 6.5% in all of 200 -4 The main contribution Q1 05 Q2 05 Q3 05 Q4 05 Q1 06 Q2 06
Slide 70: Macroeconomics: Inflation and NBP Interest Rates
Appendix Macroeconomics Inflation and NBP Interest Rates 10% The risk of exceeding 8% CPI Food prices y/y Net inflation the inflation target 6% justifies another NBP 4% interest rate hike 2% The Monetary Policy Council 0% raised the reference rate to 4.75% -2% in late August; markets and analysts
Slide 71: Macroeconomics: Loans and Deposits in the Banking Sector
Appendix Macroeconomics Loans and Deposits in the Banking Sector 45 Households Non-financial 40 Deposits Loans (% YoY) sector loans 35 30 exceed deposits 25 20 15 The economic upturn continues 10 to drive corporate loans 5 which grew by 24.5% YoY in September, 0 05 5 06 6 07 7 much above the growt
Slide 72: 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: