ING Bank Śląski S.A. Financial Results for the First Quarter of 2009 ING BANK ŚLĄSKI. Warsaw May 13, 2009

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1 ING Bank Śląski S.A. Warsaw May 13, ING BANK ŚLĄSKI

2 Information for investors Some statements contained in this presentation represent future predictions and forecasts. Such statements are based on the current views and assumptions of the Bank Management Board and they incorporate known and unknown types of risk and some degree of uncertainty. The actual results, achievements and occurrences may considerably vary from the data presented in these statements due to such elements as: (I) the general economic conditions, (II) the FM results (III), the frequency and severity of insured loss cases, (IV) the level and trends of the mortality and incidence rate, (V) the duration of specific conditions, (VI) the interest rates, (VII) the FX rates, (VIII) general competitive factors, (IX) amendments to laws and regulations, and (X) changes in the policy of the government and/or statutory authorities. ING Bank Śląski shall not assume the obligation of updating any items of information being speculations as to the future, presented herein. 2

3 Content Introduction to financial results and market position of the Bank Business development Financial results of 1Q

4 Strategic targets of ING Bank Śląski - an accomplishment in the 1st quarter of 2009 Acquisition of new clients and increase of volumes: Increase of retail clients base to 2.63 m, including th. micro-enterprises (+35 th. q/q, +300 th. y/y). PLN 35.8 bn of funds entrusted by retail clients (+2% q/q, +2% y/y). Increase of current accounts number to 1,356 th. (+54 th. i.e. 4% q/q, +172 th. i.e. 15% y/y). Intensification of lending products sales: Maintaining high quality of customer service: Increase of loans volume to the level of PLN 25.7 bn, by PLN 1.3 bn (+5%) q/q and by PLN 6.7 bn (+35%)y/y. Increase of retail mortgage portfolio by PLN 0.5 bn (+12%) q/q and by PLN 2.2 bn (+78%) y/y. Increase of corporate loans volume to the level of PLN 17.7 bn (+3% q/q and +27% y/y). Cash loans the growth of the portfolio volume by 16% q/q and 138 y/y million of ING BankOnLine clients increase by 100,000 in 1Q 2009 and by 45% y/y. Installation of 87 points with the free access to internet in branches (the total number of such points as of the end of March 2009: 220). The share of internet transfers reached the level of 97.53% (the number of transfers per quarter: 24 m). Development of simple and honest product offer: Translation of business activities into Bank s financial results: Increase of Direct accounts number to the level of 193 th. as at the end of March 2009, i.e.by 59 th. (+44%). Currently there are more than 200 th. of direct accounts (approx. 215 th.). 12 subscriptions of structured products in 1Q Widening of term deposits offer by adding elokata 4M and Ekstra Premia 5. Loans-to-deposits ratio increased to the level of 55.6% (+ 3.8 p.p. q/q and p.p. y/y). Excluding extraordinary items income grew by PLN 75 m (+13%) on the yearly basis, gross result increased by PLN 124 m (+58%) in comparison with the same period of The net result fell by 53% y/y to PLN 80.8 m. Reinforcement of market position and increase of shareholder s value 4

5 Major business results of the Bank in PLN million Change / Change / Total deposits 43,620 44,772 47,439 46,850 5% -1% Total retail clients deposits 27,450 29,508 32,517 33,475 13% 3% Total corporate and wholesale clients deposits 16,170 15,264 14,922 13,375-12% -10% Total funds entrusted by retail clients * 34,967 34,994 35,126 35,828 2% 2% TFI assets distributed by ING Bank Ślaski S.A. 7,517 5,486 2,609 2,353-57% -10% Total loans 17,361 18,957 24,357 25,668 35% 5% Total volume of loans to retail clients 4,574 4,994 7,224 7,952 59% 10% Mortgage loans volumes 2,554 2,821 4,488 5,021 78% 12% Volume of loans to corporate and wholesale clients 12,787 13,963 17,133 17,716 27% 3% * Including TFI assets 5

6 ING Bank Śląski financial performance in PLN million 1Q Q 2009 change Total operating income * % Total costs % Result before risk costs % Risk costs Gross profit % Net profit** % C/I (%) 63.0% 63.9% 0,9 p.p. ROE (%) 20.0% 8.5% -11,5 p.p. Share of impaired portfolio 2.9% 3.1% 0,2 p.p. Solvency ratio 11.0% 10.1% -0,9 p.p. * Including share in net profits of affiliates recognized by equity method ** Net profit for the shareholders of the parent entity 6

7 Impact of extraordinary items on Bank s result in 1Q 2009 Gross result: impact of the particular result s elements comparing to 1Q 08 (PLN million) Gross result 1Q 08 Operating income Risk costs on FX options 1Q 09 Other risk costs Operating costs Gross result 1Q 09 Operating income 1Q 09 Extraordinary items 1Q 09 Other income elements Operating income 1Q 09 Total impact of the extraordinary items on the 1Q 09 result amounted to PLN m, including: - PLN m on FX options (PLN 68 m negative valuation + PLN 45.4 m risk costs) - PLN 20.3 m is the result on selling and buying back of the Eurobonds portfolio 7

8 Market position of ING Bank Śląski - households market Volumes and share in the household deposits market: Volumes and share in the household loans market: Bank Household deposits - volumes (PLN million) Market Bank Household loans - volumes (in PLN million) Market % % 1.96% 2.01% % 9.42% 9.40% 8.18% 7.75% % 1.87% 1.95% % 8.97% 9.20% % 1.85% % ING Bank Śląski Market % 1.81% ING Bank Śląski Market XII 2006 III VI IX XII2007 III VI IX XII 2008 III XII 2006 III VI IX XII2007 III VI IX XII 2008 III * The data on the curves represent the market share of ING Bank Śląski (stand-alone data) as at the end of subsequent quarters according to NBP classification 8

9 Market position of ING Bank Śląski - wholesale market Volumes and share in the wholesale deposits market: Volumes and share in the wholesale loans market: Bank Wholesale deposits -volumes (in PLN million ) Market Bank Wholesale loans -volumes (in PLN million) Market % % 7.72% % 6.16% % 7.87% 7.59% % % 7.96% % % 7.84% 7.70% ING Bank Śląski Market % 5.62% 5.76% 5.79% 5.91% ING Bank Śląski Market XII 2006 III VI IX XII2007 III VI IX XII 2008 III XII 2006 III VI IX XII2007 III VI IX XII 2008 III * The data on the curves represent the market share of ING Bank Śląski (stand-alone data) as at the end of subsequent quarters according to NBP classification 9

10 Introduction to financial results and market position of the Bank Business development Financial results of 1Q

11 Retail Banking - increase of core products sales Retail banking Increase of the number of retail clients to the level of 2.63 m as at the end of March The net increase by 300,000 comparing to 1Q 2008 and by 35,000 in 1Q 2009 only. Increase of small business clients number up to the level of 183,800 (by 31,000 y/y and by 4,700 q/q). Increase of individual clients active current accounts number by over 172,000 (15%) y/y and 54,000 (4%) q/q up to the level of 1,356,000 as at the end of March ,000 new Direct Current Accounts since the implementation to the bank s offer (January 2008). Implementing of contact-less debit card PayPass to the offer 40,000 such cards have been sold since March, 9th. Saving accounts (OKO) balance: PLN 22.0 billion. Total lending to retail customers up to the level of nearly PLN 8 billion. Increase by PLN 728 m (10%) q/q and by almost PLN 3 billion (+59%) y/y. Increase of mortgage loans portfolio value up to the level of PLN 5 billion, +12%q/q and +78% y/y. Increase in loans granted to SME segment up to the level of PLN 1,295 million, + 11%q/q and + 37%y/y.. Increase of the number of ING BankOnLine clients up to the level of 1,250,000 (by about 100,000 in 1Q 09 and by 45% y/y). The share of non-paper transfers in 1Q 2009 amounted to 97.48% comparing to 96.40% noted in 1Q 2008, including 96,84% and 95,38% of internet transfers respectively. Total number of branches as at the end of March 2009 reached 439 and 360 self-banking areas. 11

12 Client base million of retail clients Number of retail clients: 2,26 2,34 2,41 2,52 2,60 2,63 113,8 123,9 103,8 147,7 139,3 94,9 Number of clients (in million) Number of new clients gross (in thousands) Increase of the number of retail clients to the level of 2.63 million as of the end of 1Q 2009: - 95,000 of new clients acquired during 1Q Net increase of the number of customers by nearly 300,000 y/y and in 1Q 2009 only the number of clients increased by almost 35,000 - Increase of the number of small business customers up to 183,800 (by 31,000 y/y and by 4,700 q/q). 12

13 Funds Entrusted - moderate increase of the volume of funds entrusted Portfolio of funds entrusted by retail clients (in PLN million): 34, ,994 34, % 38, % 35,126 35, Q % -3% +26% Change 1 Q % +2% +103% +8% +29% % +7% Sav ing accounts Term accounts and deposits Current accounts Structured deposits TFI assets Retail funds deposited within the Bank at the level of PLN 35.8 billion (+2% q/q and +2% y/y), by increase of term deposits by PLN 1.2 bn y/y and by PLN 1.1 bn q/q and decrease of TFI assets volumes by PLN 3.1 y/y and by PLN 256 m q/q. Saving accounts volume increased by almost PLN 1.5 billion ( +7%) y/y, in the 1Q 2009 at the stable level. Increase of current accounts volume by PLN 307 m (+8%) y/y, decrease by PLN 134 m (-3%) q/q Increase of structured deposits assets volume by nearly PLN 1 bn over a year, stable level comparing to 4Q

14 Current accounts consistent increase of the current accounts number Number of current accounts (in thousands): Volume of current accounts (in PLN million): +172, , % Q Q Q Q Q Q Q Q Q Q Q Q 2009 Increase of current accounts number up to the level of 1,356,000, i.e. by 172,000 y/y (+15%) and +54,000 as compared to December ,000 of Direct Accounts as of the Mid-May (only over the first quarter increase by 59,000 accounts during the first quarter). Sale of the Direct accounts was supported by promotion campaign since the half of January to the end of February (TV, radio, outdoor, internet). Increase in the number of small business current accounts by almost 6,000 in 1Q 2009 and more than 34,000 over a year (+3% q/q and +24% y/y respectively). Current accounts volume increased by PLN 307 million (+8%) over a year 14

15 Saving accounts million OKO Saving Accounts opened and PLN 22 billion funds collected Saving Accounts of retail clients (in thousands) Volume of Saving Accounts of retail clients (in PLN million) 1, ,558 1, % 3% 1,838 1,845 1, % 0% FX denominated saving accounts PLN denominated saving accounts Q 08 3Q 08 4Q 08 1Q The number of PLN denominated OKO saving accounts went up by 316,000 (+23%) y/y and by 49,000 (+3%) q/q up to the level of 1.7 million. The total number of OKO saving accounts reached the level of 1.9 million (increase by 22% y/y and 3% q/q). Saving accounts balance at the level of PLN 22 billion (increase by 7% y/y). Stable level of the saving accounts balance on quarter-to-quarter basis. 15

16 Term investment deposits and structured deposits - term deposits price war over PLN 1 bn during 1Q 2009 Volume of structured deposits (in PLN m): Volume of term deposits (in PLN m): +103% +2% % +26% Q Q Q Q Q Q 2009 Increase of term deposits volumes by PLN 1.2 bn (+29%) y/y, and by PLN 1.1 bn (+26%) during 1Q Increase of structured deposits value by PLN 976 m (+103%) y/y, and by PLN 33 m (+2%) q/q 19 January implementation of the two new term deposits to the banks offer for the OKO saving accounts holders - elokata 4M (4 months; 7%, currently 5.5% ) i Ekstra Premia 5 (3 months; 6%, currently 5%). 12 subscriptions of structured deposits IPU in 1Q 2009, including 8 subscriptions of IPU, which profitability was linked to EUR/PLN relation (4 for increase, 4 for decrease) 16

17 Loan portfolio of retail segment clients - growth of retail loan portfolio by almost PLN 3 billion over a year Loan portfolio of retail segment clients (in PLN m): +10% % Q % +11% +16% -4% -2% +7% Change 1 Q % +37% +138% -3% +13% +27% -% +30% PLN morgages FX morgages Credit cards Ov erdraf ts Cash loans Loans to SME Inactiv e portf olio excluding ING Mortgage Bank. Growth of loan portfolio granted to retail segment clients by 728 m (+10%) q/q and almost PLN 3 bn (+59%) y/y, mainly resulting from the increase of mortgage volumes. At the beginning of December the Bank withdrew from the offer CHF mortgages. Increase of volumes in 1Q 2009 is the result of loan processes started before December 3rd, 2008, drawing the previously granted loans by customers and CHF appreciation. Twice as much increase of cash loans comparing to 1Q2008 (+99 PLN m 1Q 09, +48 PLN m in 1Q 08). Increase in volume of loans granted to small business segment (+3% q/q and +37% y/y). 17

18 Mortgage loans Retail mortgage loans* (PLN m): FX structure of mortgage loans: % % % 68 % PLN CHF Q08 3Q08 4Q08 1Q * Excluding ING bank Hipoteczny (ING Mortgage Bank). Including loans secured by mortgage. The mortgage loans portfolio value over PLN 5 billion as of the end of March 2009, i.e. an increase by PLN 533 m (+12%) q/q and by PLN 2,2 billion (+78%) y/y. FX loans share in total portfolio is 32%. The sales of mortgage loans in 1Q 2009 at the level of 565 m, i.e. by 19% higher than in Q The sales of CHF loans (PLN 111 m) results from the agreements signed with the customers, most of all in January 2009, deriving from the credit processes that had begun before December 3rd, 2008 when the bank withdrew CHF denominated mortgage loans from its offer. 18

19 Small business - loans and deposits of small business segment Annual growth of loan exposure by PLN 347 million (+37%). Significant increase in small business loans volume in 1Q2009 total loans granted to small companies increased by PLN 125 m (+11%). Total value of funds deposited on small business customers accounts decreased by PLN 249 m (-7%) in 1Q2009. An increase y/y by PLN 143 m (+5%). Within the scope of increasing the availability of banking services and making better use of the bank s resources, starting from the January 1st small business customers are also serviced by retail banking officers. Small business loan portfolio (PLN m): Small business deposits (PLN m): +5% -7% % % Q 08 3Q 08 4Q 08 1Q Current accounts Saving accounts Term deposits 19

20 Cash loans Cash loans volume (PLN m): +138% % Q 2009: twice as much as in 1Q 2008 growth in loans and receivables related to cash loans granted to customers (+PLN 99 m) compared to 1Q2008 (+PLN 48 m). The sales of cash loans was supported by promotional campaigns in the bank s branches in 1Q2009 (cash loan as the product of the month in February). 20

21 Branch network and new technologies - installation of internet points Number of the Bank s branches: In 1Q 2009, 18 internet points were installed and 69 internet areas in operations rooms. Total number of free-of-charge internet points: 220 Own ATM network at the end of March 2009 was 686 machines. At the end of March the bank has 362 cash depositing machines in 360 selfbanking areas. Till mid-may the bank sold more than debit cards in the touch-and-go technology - PayPass (cards implemented to the offer on March 9th). 1Q Q Q Q Q 2009 Number of self-service depositing payments (in thousands): Number of self-banking areas: % +12% % % 44% 47% 95 16% 1Q Q Q Q Q % Number of deposits by cash depositing maschines Share of self deposits in total number of deposits 21

22 Wholesale Banking - visible results in lending activity Wholesale Banking The number of corporate clients at the end of March 2009: close to 13 th. Further conversion to a new system ING BusinessOnLine 4.8 th of users and 43% share in total electronic payments. Share of non-paper transfers in 1Q 2009 was 99.3%, out of it 99.17% internet transfers. Decrease of deposit volumes to PLN 13.4 billion, i.e. 10% q/q (decrease by 13% y/y). Increase of total corporate lending portfolio to PLN 17.7 billion (+3% q/q, +27% y/y). Increase of total Asset Based Lending volume up to the level PLN m (+11% q/q and +76% y/y). New model in scope of factoring offer with close cooperation of Bank and factor company from ING Group (ING Commercial Finance) ING Securities player No.1 by the equities trading volumes on WSE ( in 1Q 2009 share in equity market was 13.1%) 22

23 Cash Management - PLN 13 bn of corporate deposits Strategic clients: decrease of deposits volume by 11% q/q and by 18% y/y. Mid-sized companies and Mid corporates: decrease of deposits volume by 10% q/q and by 6% y/y. Nearly 13th of corporate clients. Volume of wholesale deposits (in PLN million) -12% 16,170 15, ,001 16, % 14,922 13, Q % Change 1 Q % % -6% Strategic clients (capital groups) Mid-sized companies and Mid corporates 23

24 Lending - the total corporate lending portfolio increased by PLN 583 m in Q Increase of lending exposure to Strategic clients by PLN 212 m (+2%) q/q and PLN 2 bn (+28%) y/y. Continuation of growth trends in Mid corporates and Mid-sized companies segments. The increase of the total lending exposure by PLN 371 m (+5%) q/q and by PLN 1.7 bn (+26%) y/y. Excluding the effect of Polish Zloty depreciation the growth in real terms amounted to 1.2% in comparison with the end of Volume of loans to corporate clients (in PLN million) Kredyty +27% +3% 12, , , , , , Q % +2% Change 1 Q % % +26% Mid-sized companies and Mid corporates Strategic clients (capital groups) 24

25 Asset Based Lending - increase of the value of ABL agreements by 76% y/y Value of ABL agreements amounted to PLN 1.7 bn as at the end of March 2009, i.e. increased by 11% q/q and by 76% on the yearly basis. Dynamic development of commercial mortgages (+17% q/q and +98% y/y). Assets leased grew by 10% q/q and 79% y/y. ABL Value of ABL agreements* (in PLN million) +76% % Q 2008 Change 1 Q % -4% +17% +79% +6% +98% Commercial mortgages* Factoring Leasing * Note: the total value of agreements including strategic clients 25

26 ING Business OnLine - development of electronic banking offer Increase of the number of clients using the new ING Business OnLine platform by 1.3 th during 1Q 2009 to the level of 4.8 th. Significant growth of the number of transactions through electronic banking channels in 1Q 2009 the share of electronic payments peaked to 99.3%. In March % of transfers was performed using the new ING Business OnLine platform. Number of printed statements was more than halved during the last 12 months. In the first quarter of 2009 the number of printed statements dropped by 24%. Number of transactions and the share of electronic payments (m) Number of printed statements (th.) 6,3 98,97% 5,8 98,95% 6,7 +9% 98,98% 7,1 99,01% -10% 7,0 99,19% 6,3 99,29% % % Q % -23% Change 1 Q % -52% Number of transactions (million) Share of electronic transactions 1Q Q Q Q Q 2009 Mid-sized and Mid corporates Strategic clients 26

27 Introduction to financial results and market position of the Bank Business development Financial results of 1Q

28 ING Bank Śląski financial performance in Q PLN million 1Q Q 2009 change Net interest income* 293,2 354,8 + 21,0% Net commission income 206,7 203,9-1,3% Net commission income excl. commission income related to the distribution of the TFI participation units and commission income related to brokerage services 154,8 181,5 + 17,3% Total income ** 581,5 567,7-2,4% Total expenses 366,5 362,7-1,0% Result before risk costs 215,0 205,0-4,6% * including swap points ** including share in net profit (loss) of associated entities recognised under the equity method *** net profits assigned to shareholders of the holding company Risk costs 0,7 102,1 - Gross profit 214,3 102,9-52,0% Net profit*** 173,7 80,8-53,5% CAR 11,0% 10,1% -0,9 p.p. Equity 4 013, ,0 + 6,7% ROA (%) 1,3% 0,5% - 0,8 p.p. ROE (%) 20,0% 8,5% -11,5 p.p. C/I Ratio (%) 63,0% 63,9% + 0,9 p.p. 28

29 The impact of extraordinary items on financial results Gross profit Q1 2009: Gross result without extraordinary items Impact of fx options Results on financial instruments measured at fair value through profit and loss and revaluation (PLN m) 20,3 68,0 45,4 109,0 68,0 41,0 205,0 293,3 338,7 Trading income withou an impact of fx options fx options valuation Trading income incl. fx options valuation Q before risk costs income on eurobonds fx options valuation Q before risk costs without one-offs risk costs Q without oneoffs Risk costs (PLN m) impairment losses excl. fx options Impairment losses related to fx options Impairment losses incl. fx options -56,7-102,1-45,4 29

30 Revenue by categories Revenues by P&L categories (PLN m)* -2% -2% % -89% 9,0 81,6 203,9 206,7-1% ,6 96,2 59,9 9,0 206,7 215,4 228,3 238,9 203,9 4 Q % Change 1 Q % -89% -1% 293,2 354,8 +21% 293,2 313,1 331,1 360,7 354,8-297,2-2% +21% 1Q Q Q Q Q Q Q 2009 Net interest income Net commission income Other income * Note: Net interest income includes swap points. Other income includes a share in net profit (loss) of associated entities recognized under the equity method In 1Q 2009 r the evenue include the adjustment related to FX options valuation of PLN -68 m (in 4Q 2008 FX options valuation amounted to PLN -163 m). Net fee and commission income was slightly lower than in 1Q 2008 due to lower income related to distribution of participation units in mutual funds (PLN -22 m, i.e. -64%) as well as lower brokerage commissions (PLN -8 m, i.e. -44%). Excluding these two factors the commission income was higher by PLN 27 million or +17% y/y. The highest growth was recorded by commissions related to credit insurance (+ PLN 11 m y/y) and FX margin (+PLN 7 m, i.e. 32% y/y). 30

31 Revenue by business lines In 1Q 2009 the revenues of Corporate banking include the adjustment related to FX options valuation of PLN -68 million. Revenues of the Retail Banking faced a drop resulting from lower deposits margin. Revenues by business lines (PLN m) Change -2% % % Q Q % +93% -19% -42% % -5% Q Q Q Q Q Q Q 2009 Retail Banking Corporate Banking Own operations 31

32 Total costs Decrease of the total cost on the annual basis mainly as a result of trimming personnel expenses. All other costs categories grew in comparison with the same period of 2008 and the last quarter of 2008 due to development projects and higher cost of FX denominated payments. Total costs (PLN m) -1% -1% +7% 388,7 406,4 366,5 366,5 337,4 362,7 362,7 4 Q 2008 Change 1 Q ,2 209,6 +13% 185,2 205,8 197,7 127,8 209,6 +64% +13% 181,3 153,1-16% 181,3 182,9 208,7 209,6 153,1-39% -16% Q Q Q Q Q Q Q 2009 Personnel expenses Other expenses 32

33 Risk costs and loan portfolio quality Loan losses provisions created in 1Q 2009 include write-offs of PLN 45.4 m related to FX options Share of impaired portfolio in the total loan portfolio 2,9% 1,8% 1,8% 2,1% 3,1% Impairment write-offs (in PLN m) / Impaired portfolio provisions coverage ratio 88,0% 79,2% 74,0% 75,0% 66,5% 43 97,1% 98,2% 98,2% 97,9% 96,9% -0,7 15,9-7,5-44,7-56,7-71,6-45,4 1Q Q Q Q Q Q Q Q Q Q 2009 Share of non-impaired portfolio Share of impaired portfolio Sale of the part of portfolio (+) / Risk costs related to FX options (-) Impairment write-offs Impairment portfolio coverage ratio 33

34 Financial result Net result for the 1Q 2009 at the level of PLN 80.8 m drop in comparison with 1Q 2008 as a consequence of higher risk cost and an impact of valuation and impairment costs related to FX options. Result before risk costs (PLN m) Gross financial result PLN m) Net financial result PLN m) 294,6 215,0 235,8 212,9 205,0 214,3 205,4 173,7 233,8 166,9 102,9 80,8-34,9 1Q Q Q Q Q ,2 1Q Q Q Q Q ,9 1Q Q Q Q Q 2009 * Net profit assigned to shareholders of the holding company 34

35 Bank s assets Drop of receivables from other banks (comparing to 4Q 2008) as a result of decreasing of the Bank s position related to deposits with the parent company ING Bank N.V. (by PLN 6.8 bn q/q and PLN 7.6 bn y/y. Reduction of other than loans assets by PLN 4 bn. Assets structure Gross loans to non-bank sector (PLN m) Change % % 2% 2% 2% 2% 31% 30% 34% 34% 34% 36% +36% +6% Q Q % 42% 47% 50% 51% 55% % +29% 29% 23% 15% 11% 11% 4% 4% 3% 3% 3% 2% 2% % +53% Cash within the Central bank Securities Other Deposits with other banks Loans Households Enterprises Note: loans and advances to customers do not include debt securities included in the consolidated statement of financial position (an equivalent of a former balance sheet statement) in the loans category. Such receivables have been included in the securities. 35

36 Bank s liabilities Stable funding structure high share of liabilities to customers maintained Increase of share of liabilities to other banks to the level of 12% ( 9% in 4Q 2009) and decrease of amounts due to the Central Bank by PLN 2 bn q/q to the level of PLN 4 bn. Structure of liabilities Non-bank sector deposits (PLN m) 3% -2% % 3% 9% 5% 7% 9% 6% % 9% 8% 8% 9% % 12% Q % Change 1 Q % 86% 75% 79% 79% 68% 68% 7% 7% 7% 7% 6% 6% % +3% Liabilities to Central Bank Other liabilities Liabilities to other banks Liabilities to clients Equity Households Enterprises 36

37 Assets, equity and profitability ratios Balance sheet total fell to the level of PLN 68.2 bn or by 2% in comparison with the value as of the end of 2008 due to the selective assets reduction policy launched in 1Q 2009 of the current year. On the annual basis total assets grew by PLN 8 bn (+13%). Shareholders equity increased by 1% in comparison with December 2008 and reached the level of PLN 4.3 bn (+ 7% y/y). Assets (PLN bn) / ROA +13% -2% ,2% 1,3% 1,5% 1,3% Equity PLN bn) / ROE +7% +1% ,7% 21,5% 18,9% 20,0% 12,3% 0,70% 0,50% 8,5% Ass ets ROA Equity ROE 37

38 Capital Adequacy Growth of credit portfolio loans-to-deposits ratio increased by 3.8 p.p. q/q and by 13.4 p.p. on the annual basis. Capital adequacy ratio exceeding the level of 10% Capital adequacy ratio and the total capital requirements Loans-to-deposits ratio p.p p.p ,8% 55,6% 13,1% ,0% ,2% ,9% 10,4% 10,1% 39,4% 42,2% 44,5% 44,6% Total capital requirements CAR 38

39 ING Bank Śląski results - ING Bank Śląski P&L statement in the quarterly layout ING BANK ŚLĄSKI PROFIT AND LOSS ACCOUNT (quarterly layout, consolidated) PLN million % % 1Q2009/ 1Q2009/ 1Q2009/ 1Q2009/ 1Q 2Q 3Q 4Q 1Q Q 4Q2008 4Q2008 1Q2008 1Q2008 Retail banking 278,9 344,6 323,1 300,5 265,9-34,6-12% -13,0-5% Corporate banking 209,4 202,7 205,7 150,8 121,5-29,3-19% -87,9-42% Own operations 93,2 77,2 90,5-148,9 180,2 329,1-87,1 93% Proprietary trading 38,5 54,9 32,1-81,4 108,2 189,6-69,8 182% ALCO 54,7 22,3 58,4-67,5 72,0 139,5-17,3 32% Income total 581,5 624,5 619,3 302,4 567,7 265,2 88% -13,8-2% Operational expenses, including: 366,5 388,7 406,4 337,4 362,7 25,3 7% -3,8-1% Personnel costs 181,3 182,9 208,7 209,6 153,1-56,5-27% -28,2-16% Other expenses 185,2 205,8 197,7 127,8 209,6 81,8 64% 24,4 13% Result before risk costs 215,0 235,8 212,9-34,9 205,0 239, ,0-5% Risk costs -0,7 58,9-7,5-116,3-102,1 14,2-12% -101,4 Result before tax 214,3 294,6 205,4-151,2 102,9 254, ,4-52% CIT -40,6-60,9-38,4 22,2-22,1-44,3-18,5-46% Result after tax 173,7 233,8 166,9-129,0 80,8 209, ,9-53% - assigned to shareholders of the holding company 173,7 233,8 166,9-128,9 80,8 209, ,9-53% - assigned to minority shareholders 0,0 0,0 0,1 0,0 0,0 0,0-0,0 39