ING Bank Śląski S.A. Results for 1Q Warsaw, 15 May 2007

Transcription

1 ING Bank Śląski S.A. Results for 1Q 2007 Warsaw, 15 May

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) general economic conditions, (II) financial markets results (III), frequency and severity of insured loss cases, (IV) level and trends of mortality and incidence rate, (V) duration of specific conditions, (VI) interest rates, (VII) 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 Table of contents 1. Financial results and market position of the Bank 2. Business development 3. Financial results for 1Q Appendices 3

4 Strategic targets of ING Bank Śląski - consistent execution of strategic targets in 1Q 2007 To acquire new clients and increase volumes: Retail clients funds entrusted exceeded PLN 30 billion. Stable growth of corporate clients deposits base. Private Banking client base up by 42%. To intensify sales of credit products: Value of the PLN mortgages portfolio doubled over the year. Starting the pre-scoring campaign in the small business segment. Increase of lending in the corporate client segment. To maintain high level of customer service: Front End implementation - a new application dedicated to the bank branches that allows for effective service of retail clients, including fast and convenient closing of credit product deals. To develop a simple and candid product offer: Mortgage products offer improvement in the retail segment. Launching Platinum credit card for Private Banking clients. Translation of business activities into Bank s financial results: High net profit for the Bank, mainly based on recurring income. Growth of wholesale banking revenues and continuation of favourable trends in retail banking. Improvement of the C/I ratio. TO REINFORCE MARKET POSITION and INCREASE SHAREHOLDER S VALUE 4

5 Major business achievements of the Bank - increase of core values in PLN million 1Q Q 2007 Change Total funds entrusted by clients * ,5% Total volume of loans to clients ,1% Loans to wholesale clients ,2% PLN-mortgage loans volume ,2% Open Savings Accounts (in thousands)** ,3% * Including TFI assets ** accounts in the Polish currency 5

6 ING Bank Śląski performance after 1Q high net profit for the Bank created mainly on the basis of recurring income in PLN million 1Q Q 2007 Change Total revenue* 450,6 543,1 + 20,5% Result before risk cost 152,0 202,4 + 33,2% Risk costs 47,1 7,0-85,1% Gross profit 199,0 209,4 + 5,2% Net profit** 162,4 167,4 + 3,1% C/I ratio 66,3% 62,7% - 3,6 p.p. ROE 20,4% 20,2% - 0,2 p.p. Earnings per 1 ordinary share 12,48 12,87 + 3,1% Change Total dividend per 1 ordinary share (in PLN) *** 27,50 27,90 + 1,5% Dividend pay-out ratio **** 65,1% 61,4% - 3,7 p.p. * Including share in net profits of affiliates recognized by equity method ** Net profit for the shareholders of the parent entity *** Dividend payout date set on 11 June 2007 **** % of the net profit of the Bank capital group 6

7 Market position of ING Bank Śląski - reinforcement of the Bank s position on the household deposit 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 (PLN million) Market ,77% 8,90% ,79% 8,56% 8,67% ,52% ,10% 8,10% ,81% ,39% ,87% 1,94% 2,05% 2,22% 2,55% 2,47% 2,34% 2,12% III VI IX XII 2005 III VI IX XII 2006 III ING Bank Śląski market III VI IX XII 2005 III VI IX XII 2006 III ING Bank Śląski market * The figures on the charts represent the market share of ING Bank Śląski as at the end of subsequent quarters 7

8 Market position of ING Bank Śląski - higher market shares in the wholesale segment Volumes and share in the wholesale deposits market: Volumes and share in the wholesale loans market: Bank Wholesale deposits - volumes (PLN million) Market Bank Wholesale loans - volumes (PLN million) Market ,34% % ,93% 8,22% 7,70% 8,09% 8,25% 8,82% 7,77% ,91% 5,80% 5,64% 5,48% 5,47% 5,40% 5,51% 5,30% 5,09% III VI IX XII 2005 III VI IX XII 2006 III III VI IX XII 2005 III VI IX XII 2006 III ING Bank Śląski market ING Bank Śląski market * The figures on the charts represent the market share of ING Bank Śląski as at the end of subsequent quarters 8

9 Awards and achievements - Our efforts are appreciated Month: Awards granted to ING BSK in 2007: April 07 Lamparty 2006, bankers award for the most admired creation of a bank brand image. Silver Rock 2006 in the category Card Products Development for the first customised Maestro card on the Polish market; award granted by the Polish representative office of MasterCard Europe. March 07 Main award in the 5th edition of the Gazeta Bankowa Competition Best Banking IT Project in 2006 in the category Electronic Banking and e- Finance ; ING Agent application. Number 3 in the Gazeta Finansowa Ranking Best Recognised and Reliable Financial Brands. February 07 Number 1 in the Gazeta Finansowa Ranking Credit Cards for Businesses for VISA credit card for businesses. Number 1 in the Home & Market ranking 2006 Bank Advertising Campaigns for the campaign We promise you a mortgage loan on good terms and conditions. January 07 TOP RATED status for top quality of custodian services in 2006 awarded by the prestigious American quarterly Global Custodian. 9

10 Table of contents 1. Financial results and market position of the Bank 2. Business development 3. Financial results for 1Q Appendices 10

11 Retail Banking - effects of the sales support actions Retail Banking Wholesale Banking Front End implementation - a new application dedicated to the bank branches that allows for effective service of retail clients, including fast and convenient closing of credit product deals. The number of retail clients went up by approx. 192,000 (+10% y/y). Stable and strong position in the deposit and investment segment: portfolio of funds entrusted increased by 30% throughout the year, up to PLN 30.8 billion. Savings accounts number increased by 335,000 (+43%) y/y, and the volume went up by more than PLN 3 billion throughout the year (+24%). Increase of investment funds assets distributed by ING Bank Śląski Group to PLN 6.8 billion (up by PLN 3.8 billion, or +130%). The value of credit exposure in PLN mortgages doubled throughout the year, up by more than PLN 700 million (+99%). Lending to small businesses went up by 23% y/y, while the deposit activity gained 32% y/y. The Private Banking client base gained 42% y/y while the volumes of assets under management increased by 61% y/y (up by PLN 3.1 billion). The number of corporate clients increased by 426 clients net y/y. The value of total wholesale credit portfolio increased by more than PLN 2.6 billion y/y (+30%, nearly twice as fast as the market). The volume of wholesale deposits went up to nearly PLN 14.3 billion (+ 27% y/y). The number of corporate clients using Internet banking systems (ING BankOnLine and ING OnLine) increased by more than 50%. The share of paper transfer orders in the total number of transfer orders went down to 1.4%. Revenue on FM products sales in the big and mid-size companies segment increased by PLN 5.2 million y/y (+ 35%) with a simultaneous favourable change in the revenue structure. 11

12 Retail Banking - more than PLN 30 billion of funds entrusted by retail clients In March 2007, retail funds entrusted at the Bank totalled nearly PLN 30.8 billion, up by nearly 1/3 from March last year in terms of growing competition for funds entrusted. Savings accounts and investment funds units are still considered to be the most popular products among the clients, and represent 75% of the entire portfolio. Portfolio of funds entrusted by retail clients (in PLN million): +30% +8% Change / Change / % +19% 1% +24% +130% -10% % + 24% Sav ings accounts Term accounts and deposits TFI assets Current accounts 12

13 Retail Banking - over 16 billions PLN deposited on Open Savings Accounts The number of PLN-Open Savings Account went up by 335,000 (+43%) y/y to 1.1 million. The total number of savings accounts as at the end of 2006 was nearly 1,236,000. The funds gathered in Open Savings Accounts increased by nearly PLN 3.2 billion y/y (+24%). The funds deposited on current accounts increased by PLN 642 million during the year (+24%). The number of clients in the retail segment went up by approx. 192,000 (+10% y/y), accompanied by increase of current accounts number by nearly 56,000. PLN- Savings Accounts of retail segment (in thousands): Volume of Savings Accounts of retail segment (in PLN million): % % % % Q Q Q Q

14 Retail Banking - 130% growth of TFI assets distributed by ING BSK Capital Group within the year Assets distributed by the Group of ING Bank Śląski went up from PLN 2.9 billion as at the end of March 2006 to PLN 6.8 billion as at the end of March 2007 (+130%). Maintaining the high share of the Bank in the distribution of the ING investment funds units (55% as at the end of 1Q 2007). Investment funds assets distributed by ING Bank Śląski Group (PLN million)*: +130% +19% Q Q Q Q * TFI assets of retail segment 14

15 Retail Banking - PLN mortgage loans volume doubled during the year The value of credit exposure in PLN-mortgages doubled during the year (up by more than PLN 700 million, or +99%) following a number of changes introduced to make the offer more attractive and flexible and to improve the efficiency of credit processes. Mortgage products offer improvement and continuation of marketing activities in 1Q The volume of mortgage loans sold in 1Q 2007 was three times the volume of mortgages sold in the same period last year. Nearly 2,300 credit agreements were signed during the first three months of the year, up by 143% from a year earlier. PLN mortgages in retail segment (in PLN million)*: Sales volume of new loans (PLN million): +99% +15% x 3, Q Q Q Q Q Q 2007 * including loans secured by mortgages 15

16 Retail Banking - 23% growth of lending in small business segment First results of the pre-scoring campaign started in late February credit exposure value gained PLN 44 million (+8%) in the 1Q The volume of savings accounts in the small business segment went up to 1.3 million (+33% y/y). The total value of funds deposited on small business accounts went up by nearly PLN 633 million y/y (+32%). Volume of total loans to small business clients (PLN million): Volume of deposits from small business segment (PLN million): +23% +8% +32% -1% Q Q Q Q Current accounts Savings accounts Term deposits 16

17 Retail Banking - growth of funds entrusted in Private Banking segment by 3 billions PLN y/y Number of Private Banking clients went up by 42% y/y. Volume of funds entrusted to Private Banking went up by PLN 3.1 billion y/y (+61%), mainly due to the implementation of a new model of upscale client service (service at Private Banking Centres, mobile relationship managers who tailor the offer to the client needs and requirements). Total volume of structured products went up to PLN 611 million as at the end of December 2006 (up by 193% y/y) - PLN 424 mln of total volume was generated by Private Banking. Launching Platinum credit card dedicated to Private Banking customers. Volume of ILT and ILU of PB segment and individual clients (in PLN million): Volume of funds entrusted to Private Banking (in PLN million): +193% +13% +61% +11% Private Banking Individual clients Q Q Q Q

18 Retail Banking - Front End implementation and Franchise network development Realization of 1st stage of Front End implementation in January a new application dedicated to the bank branches that allows for effective service of retail clients, including fast and convenient closing of credit product deals. Further development of Franchise Network. As at the end of March 2007 ING Bank Śląski owned 20 partnership outlets countrywide (the Bank plans to open 100 franchise outlets in 2007). Example Front End application screen: Tailor-made client offer - we know what to sell and with which particular limit Sales hints we know, how to sell. Feedback we know how client reacted for our offer 18

19 Wholesale Banking - favourable trends of the previous quarter continue Retail Banking Front End implementation - a new application dedicated to the bank branches that allows for effective service of retail clients, including fast and convenient closing of credit product deals. The number of retail clients went up by approx. 192,000 (+10% y/y). Stable and strong position in the deposit and investment segment: portfolio of assets under management increased by 30% throughout the year, up to PLN 30.8 billion. Savings accounts number increased by 335,000 (+43%) y/y, and the volume went up by more than PLN 3 billion throughout the year (+24%). Increase of investment funds assets distributed by ING Bank Śląski Group to PLN 6.8 billion (up by PLN 3.8 billion, or +130%). The value of credit exposure in PLN mortgages doubled throughout the year, up by more than PLN 700 million (+99%). Lending to small businesses went up by 23% y/y, while the deposit activity gained 32% y/y. The Private Banking client base gained 42% y/y while the volumes of assets under management increased by 61% y/y (up by PLN 3.1 billion). Wholesale Banking The number of corporate clients increased by 426 net y/y. The value of total wholesale credit portfolio increased by more than PLN 2.6 billion y/y (+30%, nearly twice as fast as the market). The volume of wholesale deposits went up to nearly PLN 14.3 billion (+ 27% y/y). The number of corporate clients using Internet banking systems (ING BankOnLine and ING OnLine) increased by more than 50%. The share of paper transfer orders in the total number of transfer orders went down to 1.4%. Revenue on FM products sales in the big and mid-size companies segment increased by PLN 5.2 million y/y (+ 35%) with a simultaneous favorable change in the revenue structure. 19

20 Wholesale Banking - growth of corporate client base by 426 clients net Number of corporate clients went up by 426 net y/y. The growth of client base was mainly observed thanks to the rise in big and mid-size companies (respectively, up by 11% and 4% during the year), as a result of organizational changes that allowed for increasing the involvement of Relationship Managers in direct acquisition. Strategic clients number decreased as a result of resegmentation and client files consolidation. Number of clients in the wholesale network: Change (number of clients) / / Mid-size companies Big corporates Strategic clients (capital groups) 20

21 Wholesale Banking - corporate clients deposits volumes at the level of 14.3 billion PLN The volume of wholesale deposits went up to nearly PLN 14.3 billion as a result of winning new clients and a good financial standing of companies. Growth of deposits volume particularly visible in the mid-size and big companies (by, respectively, 41% and 30% y/y ). Volume of wholesale deposits (in PLN million)*: +27% +2% / Change / % +19% % +30% % +41% Mid-size companies Large corporates Strategic clients (capital groups) * including ABL 21

22 Wholesale Banking - growth of corporate loans exposure by over 2.6 billion PLN Further consistent growth of total wholesale loans portfolio by more than PLN 2.6 billion y/y (+30%, nearly twice as fast as the market) as a result of further offer improvement combined with a higher demand for equity among companies (following the improvement of the economy). Dynamic growth of loans in the strategic client segment by more than PLN 1.5 billion y/y (+34%). Growth of credit exposure to big and mid-size companies by PLN 1.1 billion in total (+26% y/y). Volume of loans for wholesale clients (in PLN million)*: +30% % / Change / % +34% % +24% % +30% Mid-size companies Big corporates Strategic clients (capital groups) * Including ABL 22

23 Wholesale Banking - reduction of paper transactions to 1.4% Optimisation of processes to reduce the costs of client service: The number of corporate clients who use the Internet banking systems (ING BankOnLine and ING OnLine) went up by more than 50% Considerable reduction of paper account statements and paper transactions despite the regular increase of the total number of transactions performed reduction of paper transactions in the total number of transactions to 1.4%.. The number of Mass Payment Identification System (SIMP) users rose by more than 33% from 1Q Number of transfer orders (in thousands) / share of paper transactions: Number of Mass Payments Identification System (SIMP) users: ,1% 3,5% 3,3% 2,7% ,4% Q Q Q Q Q 2007 Number of transfer orders Share of paper transactions

24 Wholesale Banking - increase of revenues from FM products sales by 35% in big and mid-size companies segment Active sales of FM products via the Bank s branch network. Increase of revenue on FM sales by PLN 5.1 million y/y (+ 35%) in big and mid-size companies segment. Favourable change in the revenue structure: lower share of revenue generated on non-sophisticated FX-transactions and investments in favour of more sophisticated and profitable derivatives transactions. As at 31 March 2007 the revenue generated on derivatives amounted to 15% of total revenue on sales of FM instruments in the big and mid-size companies segment compared with 3% as at the end of 1Q Revenue on sales of FM instruments in the big and midsize companies segment (in PLN million): Structure of revenue on FM products sales in the big and mid-size companies segment: +35% 19,8 3% 17% 15% 9% 14,7 80% 76% 1Q Q Q Q Derivatives and structured products Investments FX transactions

25 Wholesale Banking - 2nd position of ING Securities in equity market trading In 1Q 2007, net profit of ING Securities totalled PLN 20.2 million compared with PLN 11.8 million in the same period last year (+71%). The share in the equity market trading went up from 10.8% as at the end of 1Q 2006 to 11.1% as at the end of 1Q 2007 (up from number 4 to number 2), while the share in the forward market trading went up from 5.2% to 6% (up from number 8 to number 5). ING Securities obtained second position in the 2007 Brokerage Houses Ranking prepared by Parkiet daily and was ranked high in sub-rankings. The number of Internet broker accounts went up by 61% y/y and totalled 8,540. Top brokers according to Individual Investors (average grade in the scales of 1-5)*: ING Securities financial results (in PLN millions): DM BOŚ 4,04 41,6 ING SECURITIES 4,01 27,2 +52,9% 20,2 DM BZ WBK 3,92 11,8 DM AMERBROKERS 3,87 +71,2% DI BRE BANKU 3,82 1Q Q 2007 * Based on the 2007 Brokerage Houses Ranking by Parkiet daily; 14/03/2007 Revenues Net profit 25

26 Table of contents 1. Financial results and market position of the Bank 2. Business development 3. Financial results for 1Q Appendices 26

27 1Q 2007 results of ING Bank Śląski - high net profit for the Bank created mainly on the basis of recurring income in PLN million 1Q Q 2007 Change Result on interest 219,0 261,1 + 19,2% Result on commissions 148,1 203,3 + 37,3% Total income * 450,6 543,1 + 20,5% Total costs 298,7 340,7 + 14,1% Result before risk costs 152,0 202,4 + 33,2% Risk costs 47,1 7,0-85,1% Gross profit 199,0 209,4 + 5,2% Net profit ** 162,4 167,4 + 3,1% Balance sheet total , ,1 + 29,5% Equity 3 724, ,2 + 4,8% ROA (%) 1,6% 1,4% - 0,2 p.p. ROE (%) 20,4% 20,2% - 0,2 p.p. C/I ratio (%) 66,3% 62,7% - 3,6 p.p. Income/ assets ratio (%) 4,1% 3,9% - 0,2 p.p. Costs/ assets ratio (%) 2,9% 2,7% - 0,2 p.p. Profitability ratio (%) *** 34,8% 30,5% - 4,3 p.p. * Including the share in net income of affiliated companies presented using the equity method ** Net profit for shareholders of the dominant entity *** Profitability ratio - gross profit to total costs 27

28 Total income per income statement categories - Bank s revenues increased by 20.5% Higher bank income based mainly on recurring income. Further improvement of result on interest as the consequence of growth in retail deposits and corporate loans volumes accompanied by maintaining the majority of margins on a stable level. A dynamic growth of result on fees and commissions mainly due to increase of income on distribution of investment fund participations and higher income on brokerage activity. Total income per income statement category (in million PLN)* +20,5% +13,5% 543,1 1 Q 2007/ 4 Q 2006 Change 1 Q 2007/ 1 Q ,6 83,6 148,1 478,6 42,1 191,1 78,7 203,3 +86,9% +6,4% -5,9% +37,3% 219,0 245,4 261,1 +6,4% +19,2% 1Q Q Q 2007 Result on interest Result on fees and commissions Other * The category Other includes the share in the net profit of affiliated entities presented using the equity method 28

29 Total Income per Business Line - Bank s revenues increased by 20.5% Steady growth of revenues in both retail and corporate banking segment. Further stable growth of Retail Banking income, mainly due to consistent growth of the deposit volume and increased mortgage loans sales. Significant growth of Wholesale Banking income in comparison to previous quarters as the consequence of a further growth of lending volumes. Total income per business line (in million PLN)* +20,5% +13,5% 543,1 1 Q 2007/ 4 Q 2006 Change 1 Q 2007/ 1 Q ,6 83,5 141,4 478,6 72,0 145,9 76,0 180,5 +5,6% +23,7% -8,9% +27,6% 225,8 260,7 286,6 +9,9% +26,9% 1Q Q Q 2007 Retail Banking Wholesale Banking Proprietary operations 29

30 Total costs per type - improvement of C/I ratio to the level of 62.7% Growth of personnel costs against 1Q 2006 due to indexation of salaries in 2Q 2006 and higher bonus costs. Growth of other costs against the same quarter last year mainly due to higher strategic project spending (including advisory costs) and increased marketing and advertising costs. Cost per type (in million PLN) C/I ratio: +14,1% Change -3,6 pp 298,7 340,3 +0,1% 340,7 1 Q 2007/ 4 Q Q 2007/ 1 Q ,3% 71,1% -8,4 pp 62,7% 122,2 145,5 154,2 +6,0% +26,2% 36,6 35,1 34,6-1,4% -5,6% 139,9 159,7 152,0-4,8% +8,7% 1Q Q Q 2007 Other operating costs Depreciation Personnel costs 1Q Q Q

31 Result before risk costs and financial result - result before risk costs improved by 33.2% Significant improvement of the result before risk costs due to the dynamic growth of Bank s income. Growth of the Bank s financial result despite considerably lower impairment write-offs made in 1Q 2007 in comparison to previous quarters. Impairment write-offs in 1Q 2007 amounted to PLN 7 million against PLN 47.1 million in 1Q Result before risk costs (in million PLN) Gross / net financial result (in million PLN) +33,2% +46,3% 202,4 199,0 209,4 1 Q 2007/ 4 Q 2006 Change 1 Q 2007/ 1 Q ,0 138,3 162,4 153,3 167,4 +36,6% +5,2% 102,7 +63,0% +3,1% 1Q Q Q Q Q Q 2007 Gross financial result Net financial result 31

32 Assets, equity and profitability ratios - stable profitability level maintained ROA values at a stable level despite a dynamic growth of Bank s assets. Maintaining of ROE at the level of 20%. Assets (in million PLN) / ROA : Equity (in million PLN) / ROE : +29,5% +15,9% +4,8% +3,9% , , , , , ,2 1,6% 1,3% 1,4% 20,4% 18,6% 20,2% Assets ROA Equity ROE 32

33 Income and Costs to Assets - ratios reflect realization of the Bank s strategy Drop in the value of income to assets was the consequence of dynamic development of the client base accompanied by offering products at competitive prices. A gradual drop in the value of costs to assets ratio indicating maintenance of adequate proportions in the business growth process. Income to assets ratio: Costs ot assets ratio: 5,6% 5,4% 5,4% 4,1% 3,9% 3,9% 3,3% 3,3% 2,9% 2,8% 2,7% 3,0% ING Bank Śląski Average for Peer Group according to NBP data 33

34 Bank assets - growth of volume of loans to clients by 27.7% Growth of lending, notably in corporate clients segment, resulting from the improved processes of client service and taking advantage of boom in the economy. Stable level of loans in in the structure of the Bank s assets (24.7% as at the 1Q2007-end). Structure of assets: Gross loans for clients (in million PLN): , , ,1 +27,7% +6,4% 3,0% 2,6% 2,3% 24,5% 26,8% 24,7% , , , / Change / ,7% 40,6% 40,4% 8 178, , ,1 +7,0% +31,8% 25,5% 27,9% 29,6% 3,3% 2,1% 3,0% Other Loans and cash loans granted Securities Deposits with other banks Funds with the bank 3 229, , ,6 +4,7% Households Corporates +17,2% 34

35 Bank liabilities - growth of customer deposits by over 20% Stable growth of deposit base resulting from active accumulation of funds by the Bank (attractive offer of savings and deposit, and successful marketing campaigns) and taking advantage of good financial standing of clients. Slight drop in the share of amounts due to clients in the Bank s structure for the benefit of amounts due to other banks. Structure of liabilities Client deposits (in million PLN): , , ,1 +20,1% +4,4% Change 10,9% 8,3% 10,5% 4,9% 4,3% 10,0% , , , / / ,6% 79,6% 72,6% , , ,9 +4,3% +32,3% 8,6% 7,8% 7,0% Other liabilities Amounts due to other banks Amounts due to clients Equity , , ,7 +4,4% Households Corporates +13,0%

36 Solvency and loans to deposits ratio - growth of loans against deposits volume to the level of 38.5% Drop in the value of solvency ratio caused by further lending intensification. Further growth of the loans against deposits volume indicating more efficient employment of funds acquired by the Bank. Solvency ratio: Loans to deposits ratio: -3,6 pp +2,3pp -1,9 p.p +0,7p.p. 17,4% 15,7% 13,8% 36,2% 37,8% 38,5%

37 Credit portfolio and impairment write-offs - further reduction of impaired portfolio Decreasing share of provisions in Bank s result. Maintaining cautious credit policy stance towards impaired credit portfolio. Gradual drop in the share of impaired portfolio in the total portfolio portfolio quality above the sector s average. Share of impaired portfolio in the total loan portfolio: Impairment write-offs (in million PLN) / Impaired portfolio coverage ratio: 7,2% 5,1% 4,5% 81,6% 87,5% 87,1% 92,8% 94,9% 95,5% 47,1 15,0 7,0 1Q Q Q 2007 Share of non-impaired portfolio Share of impaired portfolio 1Q Q Q 2007 Impairment write-offs Impairment portfolio coverage ratio 37

38 Table of contents 1. Financial results and market position of the Bank 2. Business development 3. Financial results for 1Q Appendices 38

39 ING Bank Śląski results - Profit & Loss statement in quarterly layout ING Bank Śląski P&L statement in quarterly layout (consolidated, analytical): In PLN mln 1Q Q Q Q Q 2007 Retail banking 225,8 241,8 233,4 260,7 286,6 Corporate banking 141,4 151,1 145,1 145,9 180,5 Own operations 83,5 71,0 74,0 72,1 76,0 Proprietary trading 44,6 19,6 28,1 43,2 39,6 ALCO 38,9 51,4 45,9 28,9 36,4 Income total 450,6 463,9 452,4 478,6 543,1 Total costs, including: 298,7 306,4 312,7 340,3 340,7 Personnel costs 139,8 139,4 140,4 159,7 152,0 Marketing costs 11,8 14,4 14,3 18,1 15,1 Depreciation 36,6 32,6 37,3 35,1 34,6 Other expenses 110,4 120,1 120,6 127,4 139,1 Result before risk costs 152,0 157,5 139,8 138,3 202,4 Risk costs 47,1 47,0 56,7 15,0 7,0 Result before tax 199,0 204,5 196,5 153,3 209,4 CIT -35,3-32,6-36,3-50,1-38,6 Result after tax 163,8 171,9 160,2 103,2 170,8 - assigned to shareholders of the holding company 162,4 170,2 157,3 102,7 167,4 - assigned to minority shareholders 1,4 1,8 2,9 0,5 3,3 39