Financial Results for 2Qs 2006

Transcription

1 Financial Results for 2Qs 2006 Best ever mid-year and quarter results Warsaw, 4 August 2006 Page 1

2 Executive summary Macroeconomic situation Financial results for 2Qs06 Integration process Appendices Business development Detailed financial data Page 2

3 Financial Highlights IFRS consolidated data 2Qs06 PLNm 2Qs06/ 2Qs05 Pre-tax profit % Net profit % ROE - pre-tax pp. ROE net pp. C/I pp. Total net revenue* 1,738 17% Net F&C % Costs (incl. depreciation) % Loans** 34,240 12% Deposits*** 39,869 10% Assets 64,216 9% Key success factors Continued macroeconomic recovery Sales-oriented corporate culture Business expansion * NII + Net F&C + trading result; ** Net loans and advances to customers; *** Amounts owed to customers Consolidated data acc. to IFRS Page 3

4 Total Net Revenue: 6 consecutive quarters of growth 900 in PLN m, by quarters % 400 1Q02 1Q03 1Q04 1Q05 1Q06 Fundamentals of corporate culture: Leadership Clear targets and high aspirations Perseverance and discipline Openness to changes Spirit of self-development & team work % % % 9% 3% 650 1Q05 2Q05 3Q05 4Q05 1Q06 2Q06 By trial and error lessons learned Consolidated data Page 4

5 Improved Efficiency (%) ROAE, 26 GROAE ROAE* GROAE** ,7 7,2 4,9 2,7 11,7 6,3 17,6 13,7 21,0 16,7 23,6 18, Qs06 ROAA 1,8 0,9 0 PAS 0,8 ROAA*** PAS 0,3 0,7 1,6 2Qs05 ROAE 14.8 GROAE 18.8 IFRS 1, Qs06 2,0 2Qs IFRS C/I C/I**** 63,8 63,1 62,6 54,5 PAS IFRS 49,5 46, Qs06 Acc. to IFRS 2Qs05 2Qs06 CAR Loans/ Deposits Loans/ Assets Margin***** Qs ROE, ROA, C/I ratios under IFRS calculated in compliance with BA-CA methodology */ net profit to average equity;**/ pre-tax profit to average equity; ***/ net profit to average assets; ****/ C/I = general administrative expenses / (total net revenue + other operating result); *****/ NII / total average assets Consolidated data Page 5

6 Net and Pre-Tax Profit in PLN m in PLN m Profit before tax Net profit Pre-tax +198%, Net +304% +38% +43% +62% +33% % +35% Profit before tax Net profit % +30% nd quarter nd quarter 2006 Consolidated data acc. to IAS or IFRS Page 6

7 Bank BPH Strategy Financial Targets Exceeded ROE pre-tax: 23.6% vs. 22% C/I: 46.7% vs. 51% Annual impact*: ca. PLN 340 m One-off costs**: ca. PLN 170 m Due to lower costs of marketing campaigns directed at affluent clients and reduced number of outlets to be opened (from 77 to 44), the annual impact and one-off costs are likely to drop by ca. 20% as compared with original plans 28 New Branches opened till end of 2Q06, another 6 in pipeline 11 credit products for PI & SME available in branch network via Aurum System. Mobile Sales Forces project advanced BusinessLine with an increased total number of serviced corporate customers up to 7,000 (33,000 incoming calls registered) BusinessLine centralized all processes connected with e.g. current account, business cards, electronic banking * revenue growth+cost savings-cost needed, from 2007; ** investments+one-offs to be borne in Page 7

8 Bank s Market Shares in Key Products Bank BPH Others 81,7% Mortgages Market PLN 63.6 bn 18,3% Credit Cards 89,3% 10,7% Market* PLN 3.6m Loans for SE 88,2% 11,8% Market PLN 40bn Market share in corporate loans (acc. to NBP classification**) dropped (y/y) from 11.67% to 10.77% Bank BPH growth vs market growth (y/y): 1.9 pp. 8pp. 12 pp. Incl. PLN : - 0,3 p.p. FCY: - 4,5 p.p. *According to bankier.pl ; **NBP segmentation is different from Bank BPH s NBP segment includes i.a. SME Page 8

10 GDP Driven by Domestic Demand in ,0 6,0 3,0 GDP (%, y/y) 6,8 5,9 4,8 4,0 3,9 2,2 2,9 4,3 5,2 7,25 5 5,3 2,75 Private consumption (%, y/y) 5,1 5,1 5,2 5,3 4,4 2,7 2,8 6 2,3 1,4 1,4 12 Investments (%, y/y) 4,8 4,9 5,3 10,1 8,5 7,4 6,5 4,0 1,4 9,0 0,0 1Q042Q043Q044Q041Q052Q053Q054Q051Q06F2Q06 0,5 1Q04 2Q04 3Q04 4Q04 1Q05 2Q05 3Q05 4Q05 1Q06F2Q06 0 1Q04 2Q04 3Q044Q04 1Q052Q05 3Q05 4Q051Q06F2Q06 Contribution to GDP growth 10 perc. points (contribution to GDP growth) net exports inventories investments government consumption private consumption GDP -2 1Q03 3Q03 1Q04 3Q04 1Q05 3Q05 1Q06 3Q06 In 2Qs06 GDP growth exceeded 5 percent Private consumption as key factor contributing to strong growth rebound GDP growth for the whole 2006 might exceed 5 percent, and will be driven by domestic demand All figures reported as quarter average (unless stated otherwise) Page 10

11 Continued Expansion of Household Loans Inflation (%, y/y, end of period) and 1M WIBOR 6,5 3,6 5,6 2,3 4,7 4,6 1,6 1,1 4,3 4,1 Inflation 1M WIBOR 4,1 0,6 0,8 1 1Q05 2Q05 3Q05 4Q05 1Q06 2Q06 F3Q Corporate and household loans (in PLN bn, quarterly averages) 116,3 126,5 Corporate 129,6 139,4 123,5 125,9 125,5 126,1 Household 144,4 128,4 157,4 130,7 169,0 132,0 1Q05 3Q05 1Q06 F3Q06 250,0 200,0 150,0 100,0 Corporate and household deposits (in PLN bn, quarterly averages) 50,0 0,0 199,3 200,6 200,5 201,5 204,7 79,8 83,9 88,3 96,5 96,3 206,6 104,1 207,5 116 Corporate Household 1Q05 3Q05 1Q06 F3Q06 NPL in commercial banks (share %)* CPI still much below the MPC target... 22,0% 21,8% 18,6% 15,6% 15,1% 13,8% 12,7% 11,5% 10,3% Q05 2Q05 3Q05 4Q05 1Q06... and for this reason, interest rates will remain unchanged in 2006, rate hikes expected in 2007 Zloty should remain strong, but vulnerable to global sentiment and local politics */ according to NBP All figures reported as quarter average (unless stated otherwise) Page 11

13 Revenue Side 2Qs06 vs. 2Qs Total net revenue in PLN m % 3,2% 0,6% Trading result ,7% 38,0% Net F&C %* % 65,1% 61,4% Net interest income 0 2Qs05 Net interest income Net F&C Trading result 2Qs06 0% 2Qs05 2Qs06 40% surge in net fees mainly due to higher sale of mutual and close-end funds (Bezpieczna Inwestycja IV and V), good fx business and consolidation of BPH TFI (PLN 42.2 m) Volatile money market hampered trading result * Bank BPH only: +13% Net F&C coverage (%) 2Qs05 2Qs06 - of general costs of remuneration costs Consolidated data acc. to IFRS, in PLN m Page 13

14 Cost Side - 2Qs06 vs. 2Qs05 Costs (incl. depreciation) in PLN m %* Impairment charges in PLN m 0 2Qs05 2Qs05 2Qs06 2Qs Qs05 Personnel Building maintenance & rents Depreciation Other 2Qs Cost under strict control: flat daily business costs, 2% growth due to projects and overall 3% due to newly consolidated BPH TFI Impairment charges in line with cautious policy and enhanced risk management tools * Bank BPH only: +1.8% Consolidated data acc. to IFRS, in PLN m Page 14

15 Assets Structure - 2Qs06 vs. 2Qs05 PLN m Assets % 58,946 57, , Qs Qs06 net loans* trading assets dues from banks other financial assets others 100% 50% 0% Loans corporate (incl. CRE) private individuals SE 55% 34% 46% 41% 12% 13% 2Qs05 2Qs06 60% 30% 0% 55,9% 2Qs06 2Qs05 52,3% 24,7% 32,5% 15,0% 12,4% 4,4% PLN CHF EUR 2,7% USD 0,0% 0,1% others * Net loans and advances to customers; Bank BPH only: +10.6% 9% assets growth fuelled by: +11.8% in loans +30% in dues from banks 52.3% of loans denominated in PLN Consolidated data acc. to IFRS; in PLN m Page 15

16 Liabilities Structure - 2Qs06 vs. 2Qs05 PLN m Liabilities Qs Qs06 deposits* dues to banks evidenced by certificates equity others 100% 50% 0% Deposits Corporate Private individuals SE 38% 52% 41% 47% 12% 11% 2Qs05 2Qs06 86% 43% 0% 83,1% 2Qs06 2Qs05 83,3% 9,1% 7,5% 0,1% 10,6% 0,2% 5,9% 0,1% PLN CHF EUR USD others * Amounts owed to customers; Bank BPH only: +10.4% 10.4% rise in deposits (i.e. PLN 3.75 bn) 83.3% of deposits are denominated in PLN Consolidated data acc. to IFRS; in PLN m Page 16

17 Quality of Loan Portfolio acc. to old Ministry of Finance Structure* Consolidated loan book 100% 10.3% 8.7% 7.1% 6,7% 1,7% 6,7% 1,0% 5,3% 0,7% 5,1% 4,1% 3,6% 1,9% 0,9% 1,0% loss doubtful sub-standard 50% watch 84,6% 87,2% 89,3% normal In 2Q06 total loan portfolio increased by 5% vs. 1Q06 and by 12% vs. 2Q05 Fall in impaired portfolio in 1H06 by PLN 350 m mainly due to writeoffs 0% *Consolidated data in PLN m, according to NBP classification Page 17

18 Structure of Loan Portfolio as at Unconsolidated data in PLN m Loan portfolio structure Total: PLN 33.1bn PLN 35.1bn 8% 7% Impaired Unconsolidated data in PLN m Loans and guarantees structure in segments PLN 35.1bn PLN 18.9bn PLN 16.2bn Corporate 46% SE 24% 14% Commercial Real Estate Financing 92% Regular 93% Retail Private Individuals 76% 86% 54% Qs06 Total Retail Corporate Loan volume portfolio = loans and guarantees granted Page 18

19 Structure of 7% Impaired Loan Portfolio as at Unconsolidated data in PLN m Share of impaired loans in segments 8% Unconsolidated data in PLN m Provision coverage of impaired portfolio in segments 55% 6% 51% Retail Corporate Retail Corporate Page 19

20 Business Divisions Contribution Pre-tax profit (PLN 767m) Corporate 21% INM Other 5% 6% Retail 68% 2Qs06 PLNm Retail (%) Corporate (%) INM* (%) Assets 64, Liabilities 64, Total net revenue 1, Costs (incl. depreciation) Impairment charges Others (%) * International Markets (INM) excluding results on sales of treasury and custody products as generated by INM Division and presented entirely in the results of Corporate and Retail segments Consolidated data acc. to IFRS Page 20

22 Integration Project Set Up Integration project launched on 22 May and proceeding at full speed 14 Task Forces were created, with ~300 people involved in the integration planning Proper integration governance process in place, with bi-weekly Program Leader reviews and monthly Steering Committees, managed by Project Management Office on daily basis Page 22

23 Project Approach Reflecting Ambitious Timetable Phase 1 Phase 2 Phase 3 Phase 4 New Bank fully in place As is assessment of operating models Evaluation of spin off options Preparation to disposal Preparation of high level integration plan Pre-closing integration activities Integration implementation Completed July 2006 October 2006 December 2007* * final deadline from IT perspective to be validated Page 23

24 Project Organisation Pekao Supervisory Board UniCredit sponsorship BPH Supervisory Board Pekao Management Board BPH Management Board Steering Committee UniCredit BPH Pekao Program Leadership Project Management Office Communication PR, HR, Legal, IR Focused on supporting other teams in the first phase Target outlets Business assessment Retail Subsidiaries Corporate and Treasury Subsidiaries Financials M&A Compliance/ Legal /Tax Spin-off/ integration Accounting HR IT/Operations Logistics Risk Working teams Page 24

25 Task Forces Achieved Significant Progress, In Line With Expectations Methodology for outlets selection developed As is comparison of the operating models completed, with high level aspirations for the New Bank close to completion Retention plan for key resources prepared, program to exchange of middle management planed Comprehensive communication program in place Page 25

27 Retail Business Development Continuous Income Growth Income in PLN m % Q05 3Q05 4Q05 1Q06* 2Q06 New customers acquisition packages growth: (+134 ths ROR for PI & +36 ths Harmonium for BC) Boost in alternative savings products sales: - BPH TFI assets tripled over the last 12 months (+3.2 pp. market share growth up to 7.5%) - PLN 865 m sales of structured certificates in 2Qs06 (2 SCD large issues) Dynamic growth on the loans side: (+28% y/y volumes and +25% y/y interest income) * Incl. transition from monthly to annual fees on overdrafts in PI segment Page 27

28 Retail Business Development - Total Sales Retail loan volumes in PLN bn Retail deposit volumes in PLN bn* Margins (%): Margins (%): ,2 17,5 16,8 16,0 15,0 +28% ,0 21,6 21,9 20,6 21,2 +6% 10 2Q05 3Q05 4Q05 1Q06 2Q06 Market shares (%): 10 2Q05 3Q05 4Q05 1Q06 2Q06 Market shares (%): Three marketing campaigns launched in March (PoR, MTG, Quick Loans for SME) Strong sales of mortgage loans (PLN 3.2 bn increase of portfolio y/y) Focus on alternative investment products (mutual funds & structured products) Page 28 * deposits only without corporate bonds (as at the end of each period) decrease in traditional deposit market share in 1Q 06 resulted from strong sale of mutual funds

29 Retail Business Development - Investment Products BPH TFI: assets growth: +PLN 0.5 bn in 2Q06 and +PLN 3.8bn over the last 12 month specialization in close-end funds (PLN 350 m sales of Bezpieczna Inwestycja 5 in March-April 2006 and total sales PLN 1.1 bn in 2Qs06) 7,0 6,0 5,0 4,0 3,0 2,0 1,0 0,0 BPH TFI assets in PLN bn 1,9 2,9 x 3.0 3,8 5,3 5,8 2Q05 3Q05 4Q05 1Q06 2Q06 Market shares (%): substantial improvement of market share (+3.2 pp. to 7.5%) and position (from 7 to 5 place) in last 12 month Structured deposits: Two large issues in 2006: Lokata Azjatycka in March (3-year certificates linked to 3 Asian stock-exchange indexes) & Złota Lokata in June (with revenues linked to commodities prices) Page 29

30 Retail Business Development - ROR ROR accounts for PI in % 2Q05 3Q05 4Q05 1Q06 2Q06 ca. 8% share in the market* 134ths ROR packages growth 46% share of color** packages (+6 pp. over the last 12 months) * According to Rzeczpospolita ** Silver, Gold, Investor, Sezam Max, Private Banking Page 30

31 Retail Business Development Credit Cards & Alternative Distribution Channels Credit cards number in % 0 2Q05 3Q05 4Q05 1Q06 2Q06 SME and PI (in 000) 2Q05 3Q05 4Q05 1Q06 2Q06 Internet banking Call center % +43% Page 31

32 Retail Business Development - Harmonium & Quick Loans For SME Harmonium packages in % Q05 3Q05 4Q05 1Q06 2Q06 Substantial increase of deposit volume (+25% y/y) Rapid growth of loans for SME (20% y/y) - successful marketing campaign of Quick Loans offer Bank BPH leader of EU project financing for SME segment (15.2% share after 4 application rounds, 218 projects) Page 32

33 Retail Business Development Mortgage Lending (1) Very Competitive Market with Flexible Strategies of Numerous Players Mortgage loans volume in PLNbn PLN share +39 % 9,7 9,0 8,4 17,4% 16,9% 16,7% 11,6 10,3 16,3% 15,4% IIQ05 IIIQ05 IVQ05 IQ06 IIQ06 Market shares (%): % sales growth in 2Q06 vs. 2Q05 100% 50% 0% As at Total PLN FX Av. maturity* 21 years 18 years 23 years Av. amount** PLN 128,000 PLN 70,000 PLN 147,000 Av. LTV*** 66% 54% 69% NPL 1.72% 5.06% 1.10% Growth dynamics (IIQ06/ IIQ05) 39% 23% 42% * loans granted in 2005; contractual maturity, the actual is 3-5 years shorter ** loans granted in IIQ06;***actual 1.9 pp. market share decline y/y - due to much higher sector growth mainly in FX loans Page 33

34 Retail Business Development Mortgage Lending (2) Mortgages create ample opportunities for long-term cross-selling. 25% of new affluent acquisitions with mortgage as entrance ticket Mortgage lending to GDP (in %) UK Germany Spain European Average France Italy Hungary Czech Republic Poland Starting from 15 of July 2006, the policy to limit granting of foreign currency loans to private individuals introduced Restrictive criteria of credibility assessment in line with Recommendation S and R issued by the Banking Supervision Commission Loans are linearly paid down (amortization). No balloon payments! No life insurance accepted as equity part Page 34

35 Corporate Business Development Income & C/I Fee* & Interest Income in PLN m C/I (%) based on fully-loaded costs ** +4.2%* 331* p.p interest income 52,0 49,5 179* 196 fee income 2Qs05 2Qs06 2Qs05 2Qs06 * In 2006 new methodology has been introduced to fee costs. Part of GAE costs, related to cash services, have been switched to fee costs. Therefore Fee costs as of June 2005 YTD should be adjusted by PLN 8,7 mio. As a result real dynamics recorded was 7,1%. ** The Bank is currently working on the change of methodology of GAE reporting. As during the transition process no reliable data on cost execution is accessible on Division level, we used pro-rata Budget 2006 for these costs which not exactly corresponds to revenue development (1H is usually weaker). Page 35

36 Corporate Business Development Deposits and Loans Corporate Deposit Volumes in PLN m % average Corporate Loan Volumes in PLN m % average 0 Average 2Qs05 Average 2Qs06 0 Average 2Qs05 Average 2Qs06 15,00 Corporate Deposits market share (in %)* Corporate Loans market share (in %)* 11,16 11,42 12,17 10,26 11,05 11,95 11, pp. 15, pp. 10,77 0,00 0,00 2Q03 2Q04 2Q05 2Q06 2Q03 2Q04 2Q05 2Q06 */ Period end; Note: Data accordingly to NBP segmentation, which is different from Bank BPH s - NBP segment includes i.a. SME Source: NBP Page 36

37 Corporate Business Development Transactional Banking (1) Awards given to Bank BPH for transactional innovations: Bank BPH was awarded with a prestigious title of Energy World s Leader for introducing TransCollect and TransTable to companies of energy sector. 21 from 33 such companies in Poland use our products. Main achievements of Transactional Banking BPH Business Line corporate customer service unit is already servicing 7070 clients Successful sales of BusinessNet 3,521 clients with over 10.2 m transfers (since the product introduction) New functionality is being introduced to BusinessNet Information Module, clients are delivered the latest news on the monetary market, capital market, domestic and foreign stock exchanges, commodity markets etc. Page 37

38 Corporate Business Development Transactional Banking (2) BPH BusinessLine - every week the client acceptance is higher. So far over actions have been taken as a result of the answered calls. Each month the number of calls is growing dynamically TransDebit (quarterly total transfers) % 1Q05 2Q05 3Q05 4Q05 1Q06 2Q06 POS (quarterly total transactions) % 1Q05 2Q05 3Q05 4Q05 1Q06 2Q06 Page 38

39 Corporate Business Development Structured Finance Bank BPH remains the key player in Structured Finance Successful origination and primary & secondary market syndications 18 transactions closed in 2Qs06 increased transactional activity in Telecomunication, Media & Technology sector (TMT) successfully syndicated 2 transactions PLN 1.6 bn syndicated loan for telecom company With 3 telecom transactions signed in 2Q cable TV and 1 Media transaction signed in 2Qs06 BPH substantially cements its positions as the leading TMT sector house in Poland Metals: PLN 300m club based loan for a WSE listed company One of the largest syndicated loans in Poland this year Bank BPH SA acting as a Mandated Lead Arranger, Facility Agent and Documentation Agent Continued emphasis on co-operation with Financial Sponsors and M&A financing This type of business usually opens the door for a wide range of other banking products Page 39

40 Corporate Business Development Commercial Real Estate Bank BPH is one of the market leaders in Commercial Real Estate (CRE) Trinity Park II Prosta Office Centre PLN Mortgage-backed bond issue CRE has closed 14 transactions in the first half of 2006 Co-Arranger First issue of mortgage backed bond it has been one of the most sophisticated financial transaction completed on Polish market Continuous acquisition efforts brought new large transactions to the pipeline, what allows to expect further income growth in this field BPH Real Estate has been strengthening Bank s role on commercial real estate market BPH Real Estate has been working on its first residential project as developer in Warsaw: Metropolis in Bielany District PLN Land financing Arranger Page 40

41 Corporate Business Development Leasing 7,5% BPH Leasing market share * In 2Qs06 BPH Leasing leased new assets of PLN 490m (5% rise y/y) Growth prospects likely to continue in ,5% 5,7% 5,7% 4,7% 2,5% 1,3% 0,0% Qs06 Value of assets leased PLN m % Qs05 2Qs06 * Source: Związek Przedsiębiorstw Leasingowych (Polish Leasing Association). Page 41

42 INM Business Development Treasury Sales Area & Origination Sales margin on treasury products* 196% 143.6% growth of sales margin on treasury derivatives and fixed income in 2Q06 vs. 2Q05 mainly driven by a significant rise in 100% +96% origination of Structured Investment Products distributed to retail investors 151% (YoY) increase in total outstanding medium & long-term corporate bonds 2Q05 2Q06 organized (as per the end of June total * results on sales of treasury products and custody services generated by INM Division are presented entirely in the results of Corporate and Retail segments outstanding amounted to PLN 2,328.7m) Page 42

43 INM Business Development Custody 51.6% (YoY) increase in assets under in PLN m Average monthly assets under custody custody due to: new clients acquisition i.e. local Investment & Pension Funds as well as foreign financial institutions Q % 2Q06 organic growth of clients portfolios fuelled by stock market increase 110.4% growth in YtD number of customer transactions settled vs. the same period 2005 driven mainly by successful acquisition of remote brokers admitted by Warsaw Stock Exchange (56% market share) Page 43

44 INM Business Development Treasury Area in PLN m Average monthly volume of inter-bank transactions Q05 +35% Q06 Active market making in all segments incl. derivatives supported by sophisticated risk management tools, resulting in 35% turnover increase Balanced net economic income contribution of Trading / Investment activities (47%) and Structural Bank Book positions (53%) Pro-active structural liquidity management aimed at securing diversified funding sources (e.g. issue of EUR 0.5bn 10 years Eurobonds in March 2006 under EMTN programme established in 2005) Page 44

45 INM Business Development 2006 Achievements Top Player in origination and sales of structured investment products Fitch: 1 st place in medium and long-term corporate bond outstanding in 2006 Issue of Capital Protected Deposit Certificate linked to Asian Stock indices PLN 435m Issue of Capital Protected Deposit Certificate linked to basket of commodities PLN 425m Year-to-Date Direct Cost/ Total Income Ratio (incl. Treasury Sales and Custody income) amounted to March 2006 May-June % In FX market forecast monthly Ranking of Puls 1 st Place Top Position Biznesu Daily Market Research Team of Bank BPH classified on the top position in January, February, March and June 2006 medium & long term corporate bond issues June 2006 in monthly FX market forecast January, February, March, June 2006 Page 45

46 Bank BPH Cost Structure ,0 88,5 101,8 94,3 76,8 107,9 60,9 50,8 55,0 39,5 51,3 51,0 66,6 57,9 49,6 35,5 49,9 45,2 Other Depreciation Buildings maintenance & rents Personnel 179,1 178,2 191, ,7 198,8 0 1Q05 2Q05 3Q05 4Q05 1Q06 2Q Total (PLN m) PLN 7.5m in 1Q06 and 5m in 2Q06: costs added from BPH TFI and BPH PBK ZF consolidation Consolidated data acc. to IFRS, in PLN m Page 46

47 Bank BPH Structure of Net F&C 0% ,5% 39,1% 36,2% 38,2% 30,5% 36,4% (5) Other (1) Securities and custodian business (2) 50% 41,0% 36,4% 37,9% 40,1% 44,1% 28,5% (4) Loans and advances (3) Domestic payments (4) 10,3% (3) International payments (5) Total (PLN m) 100% 15,1% 17,8% 16,6% 11,3% 12,5% 18,5% 9,4% 8,1% 5,4% 8,0% 7,8% 1,2% 1,3% 1,4% 4,7% 6,3% 2Q05 1Q06 1Q Q Q Q (2) (1) PLN 17m in 1Q06 and 25m in 2Q06: F&C added from BPH TFI and BPH PBK ZF consolidation Consolidated data acc. to IFRS Page 47

48 Number of Bank s Outlets and Employees* Outlets*** Partner outlets 90 Employees** % Q Q06 * Bank BPH only ** without unpaid, maternity and child-care leaves, in FTEs *** including branches, sub-branches, without Corporate Centers Page 48