PKO Bank Polski Company profile and strategic update

Transcription

1 PKO Bank Polski Company profile and strategic update July 2014

2 PKO Bank Polski - the leading bank in Poland Universal Polish bank established in 1919, since 1950 operated as the PKO State-owned bank, in 2000 transformed into PKO Bank Polski SA, a joint-stock company Listed on Warsaw Stock Exchange since 2004 the largest CEE (1) bank and one of 30 largest European banks in terms of market capitalization No. 1 in Polish banking sector in terms of total assets, total equity, net profit, loans and deposits, size of customer base and distribution network Dividend payout ratio (2) at 31.65% of 2013 net profit Robust funding, strong liquidity profile and strong capitalization combined with strong and consistent financial performance Strong credit rating by S&P (A-) and Moody s (A2) Share price performance since (IPO) Ke y financial information (P LN bn) Net loans Total assets Deposits Equity Result on Business Activity Ne t profit Earnings per share, diluted (PLN) Divide nd pe r Share (PLN) Loan to Deposit Ratio 93.2% 98.3% 96.7% 98.1% 98.5% Imapaired Loans Ratio (3) 7.6% 8.0% 8.0% 8.9% 8.1% (Core ) Tie r 1 Ratio 13.5% 11.3% 11.2% 12.6% 12.4% Net Interest Margin (4) 3.9% 4.4% 4.6% 4.4% 3.7% Cost to Income Ratio 47.9% 41.7% 39.6% 41.5% 43.1% RoAE 14.8% 14.9% 17.5% 14.7% 13.1% Shareholders structure (1,250 mn shares) State Treasury 31.39% Others 56.72% ING OFE* 5.17% (1) Central and Eastern Europe ( CEE ) excludes Commonwealth of Independent States ( CIS ) and Turkey. (2) Payout ratio in % of stand-alone net profits of the Bank. (3) Impaired loans to total gross loans and advances to customers under IFRS. (4) Net interest income for last 4 quarters divided by average interest bearing assets for the period calculated using quarter-end balances. (5) Net profit attributable to equity holders of the parent company for the period divided by the average shareholders equity calculated using quarter-end balances. Aviva OFE* 6.72% *) Share reported by ING OFE after exceeding the threshold 5% of total number of votes at GM of PKO Bank Polski by ING OFE (as at ) and Aviva OFE (as at ) 2

3 The key business metrics Retail Banking Corporate Banking Investment Banking Transactions with retail clients and SMEs comprising i.a.: current and saving accounts, deposits, private banking services, investment products, credit and debit cards, consumer and mortgage loans, corporate loans for SMEs and housing market customers Solutions for products and distribution channels (electronic banking ipko, new mobile payments standard at implementation of IKO application in 2013) A strong position on the housing loans market (in 2013, 30% share in sale of housing loans for individuals in Poland) Transactions with large corporate clients comprising i.a. : current accounts, deposits, depositary services, currency and derivative products, sell-buy-back and buy-sell-back transactions, corporate loans, leases, factoring and issuance of non-treasury securities Transaction banking services provided to entities with complex organizational structures (e.g. groups of companies), enabling their customers to use various kinds of products and services which make it easier to settle transactions with foreign partners Modern solution for cash management intended especially for large retail networks: payment machines with the unique possibility of making payments using payment cards, the possibility of integrating the financial and accounting system with the bank cash management system (PKO Cash) Operations on the money and the capital market and trading on the interbank interest rate and foreign exchange markets Transactions concluded with retail and corporate customers, including transactions associated with financing large investment projects and transaction banking services Cooperation among financial institutions such as investment fund companies, pension and insurance companies The Bank s own issues on the Polish market and international markets (i.a. through bond issues) and obtaining funds from monetary and non-monetary financial institutions The Brokerage House with the largest sales network in Poland and 3rd market position in terms of trading on the secondary stock market Providing fiduciary services and acting as a depositary for pension and investment funds Largest retail bank in Poland (2013) Loans market share 19.1% Deposits market share 21.7% Current accounts 6.3 mn Number of clients 8.4 mn Banking cards 7.1 mn Retail branches 1,147 ATMs 2,992 Leading corporate bank in Poland Loans market share 13.1% Deposits market share 9.4% Market share in municipal bond issues 28% Market share in corporate bond issues 14% Number of clients ( 000) 12 The market share of PKO BP in equity trading in Poland 5.9% 5.1% 9.1% 9.5% (2013) 3

4 Superior long-term financial performance PKO Bank Polski performance since IPO CAGR(%) 2013 Consolidated data (PLN bn) PKO BP+Nordea 2) Assets Gross Loans Deposits Total equity Result on business activity Administrative expenses Net impairment allowance Net profit % ) Years estimates of PKO Bank Polski 2) Calculations based on standalone annual reports of PKO BP and Nordea Bank Polska 2013 PKO BP+Nordea 2) Net Interest Margin n.a Cost of risk 1) n.a NIM after cost of risk 1) n.a C/I ROE n.a ROA n.a CAR Core Tier 1 n.a. n.a L/D

5 PKO Bank Polski strategic levers Customer Satisfaction Acquisitions and alliances 1 Leveraging the full potential of the Bank s customer base by building product offers tailored to the needs of specific customer segments 6 Actively searching in Poland and Central Europe for strategic acquisition- and alliance-driven growth opportunities, to be financed with significant capital surplus 2 Distribution excellence Improving the effectiveness and quality of customer service across the country s largest branch network and developing remote delivery channels 5 Development of competences Strengthening of organisational culture based on shared values and human resources, focusing on cooperation, engagement and development of skills 4 Organisational effectiveness Maintaining competitiveness by implementing intelligent information management solutions, optimising risk and AL management, and observing cost discipline 3 Innovation and technology Enhancing the competitiveness of products and services, strengthening relations with customers and diversifying revenue sources through innovation and technological improvements 5

6 Mid-term strategic targets (1) Ratios: ROE, C/I, CAR, Core Tier 1 on a stanalone and consolidated basis. Strategic targets (1) untill 2015 (2) Churn rate: number of lost customers relative to the active customer base. Return on equity ROE around 15% Effectiveness C/I below 45% Risk appetite Moderate cost of risk below 1.20pp ( bp over the long-term) Growth and market share Customer satisfaction Leader in all key market segments Above 17% share in the loan market Above 18% share in the deposit market Churn rate (2) below sector average Capital adequacy CAR over 12% and Core Tier 1 over 11% Liquidity NSFR over 100% 1) Ratios ROE, C/I, CAR, Core Tier 1 on a standalone and consolidated basis 2) Churn rate: number of lost customers relative to the active customer basis 6

7 Key strategic inititives 2015 Active search for opportunities to strengthen growth through acquisitions in the banking, asset management and leasing segments of the Polish financial services industry Strategic alliances in payments, insurance and acquisitions Development of employees and enhanced organisational effectiveness Innovation and new technologies (e.g. payments, mobile banking, self-direct) Increased sale of capital market products, including development of competences in the area of bond issues and brokerage services Development of transactional banking and a new sales structure in corporate banking Improving distribution with a New Rhythm of work and a new operating model for the branch network Increased customer satisfaction, segmentation and retention CRM development New formula for SME and personal banking The cost of risk below 120bps and reduction of the sensitivity of the Bank s financial performance to interest rates changes through optimization of asset and liabilities management (ALM) 7

8 PKO Bank Polski Attractive risk-return profile Stable market with attractive growth potential CAR over 15%, L/D ~105%, Expected long-term growth of loans and deposits over 6% annually, sector meeting the Basel III norms in most cases Leader in all market segments and a strong brand Total assets ~14%, retail loans and deposits market ~ 20%, corporate loans market ~ 13%, inorganic growth potential, the most valuable Bank brand with 90 years of tradition Strong competences and experienced team Experienced management staff, change in the Bank s DNA (development of competences, dynamics and innovation), leading employer in the sector High organisational effectiveness Cost discipline (C/I < 45%, OPEX/business volumes below the competitors ), automation and centralization of processes, ROE ~13%, ROA ~ 2% Modern technological infrastructure New and scalable technological platform, development of CRM and data mining, developed electronic channels - ipko and Inteligo, leading call centre in Poland, new iko mobile payment standards Strong capital and liquidity position Core Tier 1 ~ 12%, CAR ~ 14%, Loans/stable financing sources ~ 90%, credit rating at sovereign level, access to local and international bond markets Stable value growth and attractive dividend policy Largest bank in Central Europe in terms of value, largest company on the Warsaw Stock Exchange, average annual return on shares since IPO ~ 10% (TSR), average dividend payout ratio ~ 55%, average dividend yield ~ 3.4%, in the last three years ~ 4.7%. 8

9 Acquisition of Nordea assets in Poland Key transaction highlights On 1st April 2014 PKO Bank Polski (PKO BP) acquired Nordea s Banking, Leasing and Life Insurance operations in Poland for a total amount of nearly PLN 2.81 bn. The portfolio of FX loans valued PLN 15.2 bn will be refinanced over a period of seven years by Nordea Bank AB. Completion of the integration process planned for the first half of 2015 The acquisition of Nordea's banking operations in Poland represents an attractive opportunity for PKO BP to expand its leadership position in retail, grow its distribution network in large Polish cities, increase its affluent client base and significantly strengthen its corporate franchise The transaction perimeter includes a life insurance company that will serve as the platform for PKO s bancassurance strategy, taking advantage of PKO BP s large domestic distribution network and demonstrated cross sell experience The transaction is also consistent with PKO BP s strategy for to deploy its surplus capital and strengthen its position in the Polish market through selected acquisitions; in addition, PKO BP is thus able to maintain high growth rates in a period of general economic slowdown and a low interest rate environment PKO BP remains committed to maintaining a strong capital and liquidity position and an attractive dividend policy for shareholders post transaction The transaction is beneficial for all stakeholders: Shareholders: as it generates attractive return on investment (ROI), EPS accretion and synergies Employees and clients of the enlarged organization: by providing higher development opportunities and improved service levels in a stronger and more effective enlarged group Additionally, the transaction brings together two leading European financial institutions and opens up further avenues for continued cooperation The Polish banking sector: as it strengthens Nordea Bank Polska s capital base and decreases its reliance on foreign capital 9

10 Plan for integration of the Nordea assets assumes finalizing the main stage of works in Q Milestones Trans- action March April May June July August Sept October Nov Dec Jan Febr March April -1M KNF decision Transaction closing 0 +1M +2M +3M +4M +5M +6M +7M +8M +9M +10M +11M +12M Closing Legal merger Rebranding Operational merger GSM Court register entry Forced share buyout Adoption of the merger plan Application to KNF for its consent to merger of the banks Transfer of control Legal merger "Small-scale" rebranding Rebranding Nordea Bank Polska The Nordea network starts servicing PKO clients Migration to the PKO systems Nordea Life Transfer of control "Small-scale" rebranding Rebranding Bank assumes a Joint Venture with strategic insurance partner with compliance to Recommendation U requirements Nordea Finance Transfer of control "Small-scale" rebranding Rebranding Legal merger and migration of the leasing business 10

11 Integration synergies and costs in the years Costs of integration (PLN mn) PKO Bank Polski has assumed the total integration expenditures over four years OPEX CAPEX 22,0 18,1 3,9 160,0 111,8 48,2 Income and costs synergies (PLN mn) synergie Cost synergies kosztowe synergie Income przychodowe synergies ,0 60,8 25, ,0 26,2 10, to close at PLN 305 mn; Opex will represent over 75% or PLN mn of those expenditures; Capex will thus stand at close to 25% of the integration expenditures; The key integration budget items will include: IT system migration (over 55%), personnel costs (21%), marketing and communications (7%), real estate (5%) and other (12.5%); The assumed integration expenditures are equivalent to average in comparable transactions in both Poland and the international markets, even though the cost structure is somewhat different on account of the cost of unbundling of the IT area. After a detailed verification exercise, the Bank now expects the cost saving synergies to be higher than originally assumed; The Bank expects to realise the IT area related synergies rather rapidly: at termination of cooperation with the supplier of the IT services carved out of Nordea Bank Polska; Total acquisition synergies are estimated at PLN mn (gross); as of 2017, i.e. counting from completion of the integration process; Key synergies will be delivered through: integration of the functions such as IT, support and cross-selling; acquisition of new clients and customers; and bancassurance in the retail banking business; The transaction will have a positive impact on the PKO BP Group s net financial result as early as in 2014; At completion of the integration process in 2017, estimated increase in EPS attributable to the transaction will reach nearly 9%, with ROI of around 13%. 11

12 Acquisition that boosts growth and improves competitive position Assets Consolidated assets, PLN bn (2013) PKO BP+Nordea PKO BP Market share 16.5% +2.3 pp 14.2% Market share % 20% 18% 16% 14% 12% 10% 8% 6% 4% Loans ING BSK mbank BZ WBK Pekao PKO BP as at end-2008 as at end-2013 PKO BP + Nordea Pekao % 2% Loans (PLN mn) BZ WBK mbank ING BSK Nordea % 7.4% 6.2% 2.3% Market share % 20% 18% 16% 14% 12% 10% 8% 6% 4% Deposits mbank BZ WBK ING BSK Pekao PKO BP as r. at end-2008 as at end-2013 PKO BP + Nordea Deposits (PLN mn) 12

13 Stable growth in loans and deposits with retention of the strong profitability Consistent and virtually uninterrupted loans and deposits growth Gross loans (PLN bn) Customer deposits (PLN bn) Q Q 2014 Strong profitability levels through the cycle Return on Average Assets (1) Return on Average Equity (2) 1.6% 0.8% 2.0% 1.0% 2.1% 2.0% 1.6% 1.6% 1.3% 1.2% 1.1% 1.1% 14.8% 14.9% 8.8% 10.3% 17.5% 16.0% 12.9% 11.1% 13.2% 13.1% 10.3% 10.1% Q 2014 PKO BP Polish Banking Sector Source: The Group s financial statements and own calculation according to PFSA banking sector data Q 2014 PKO BP Polish Banking Sector (1) Return on Average Assets = Net profit attributable to equity holders of the parent company for last 4 quarters period divided by the average total assets calculated using quarter-end balances. (2) Return on Average Equity = Net profit attributable to equity holders of the parent company for last 4 quarters period divided by the average shareholders equity calculated using quarter-end balances. 13

14 Strong revenue generation driven by core income and high margins Revenue growth driven by strong core income (1) generation capabilities (PLN mn) Q Q 2014 Net interest income Net F&C income Net other income Net F&C income breakdown by segment Retail 74.1% Corporate 10.4% Total 2013 = PLN 3,006 mn Investment 15.5% Net interest margins (2) 3.9% 4.4% 4.6% 4.7% 3.7% 3.7% Net interest income breakdown by segment Retail 81.0% Corporate 9.1% Investment 4.1% Transfer centre 5.8% Q 2014 Total 2013 = PLN 6,722 mn (1) Core income = Net interest income + Net fee and commission income. (2) Net interest income for last 4 quarters divided by average interest bearing assets for the period calculated using quarter-end balances. 14

15 Structure of deposit base as compared to competitors Structure of total deposits by client type 1) (as at ) 3.5% 7.8% 5.2% 3.0% 1.2% Deposits structure in Polish banks (as at in PLN bn) % 44.7% 34.7% 29.6% 44.1% % % 47.5% 60.1% 67.4% 54.7% % % 48.0% % % % % % 41.5% PKO BP Bank 2 Bank 3 Bank 4 Bank 5 deposits of retail clients deposits of corporate entities deposits of State budget entites PKO BP Bank 2 Bank 3 Bank 4 Bank 5 term deposits+other current deposits + O/N Source: banks consolidated financial statements 1 PKO Bank Polski has the largest share of retail deposits resulting in lower flexibility of changes in financial conditions in the short term 2 PKO Bank Polski has the highest volume of term deposits, including a significant volume of deposits for a period of up to 12M, which - under conditions of declining interest rates, in the short-term led to the an increase in interest costs (1) Amounts due to customers 15

16 Cost discipline supporting operating efficiency Cost/Income (1) ratio maintained at low level Continued improvement in productivity (2) Cost to average assets # Employees ( 000) 47.9% 41.7% 39.6% 40.3% 43.2% 43.1% ,9% ,6% 2,5% 2,4% 2,3% 2,3% Q Q 2014 Strict cost control (PLN mn) Administrative expenses breakdown CAGR +2.2% Q Q 2014 Administrative expenses +0.5% Staff costs 54.4% (1) Administrative expenses for last 4 quarters divided by total operating income for the same period (2) Administrative expenses for last 4 quarters period divided by the average total assets calculated using quarter-end balances. Total 2013 = PLN 4,623 mn Overhead & other costs 33.1% Depreciation 12.5% 16

17 Maintenance of prudent approach to credit risk resulting in sound asset quality Stable share of loans with recognised impairment... achieved with improving coverage ratio 7.6% 8.0% 8.8% 7.9% 8.0% 8.2% 8.9% 8.9% 8.2% 8.5% 8.1% 8.4% 43.2% 44.6% 48.0% 50.5% 51.7% 52.5% Q 2014 PKO BP Group Polish banking sector Q 2014 Source: The Group s financial statements, PFSA. Decreasing cost of risk 1.41% 1.45% 1.37% 1.30% 1.31% 1.26% Q 2014 Prudent risk approach resulting in stable asset quality during the crisis and improving credit quality metrics and provision coverage in the current environment Much stricter internal NPL classification compared to standard 90 days past due loans (after 1Q 2014 at PKO Bank Polski the share of loans delayed past due over 90 days at 5.4%) More balanced provisioning levels reflected in relatively decreasing through-the-cycle cost of risk levels 17

18 Robust balance sheet and funding position While PKO Bank Polski has access to the wholesale markets, it relies on customer deposits as its predominant funding base Strong and stable capital position Stable balance sheet financing (1) 14,8% 13,5% 12,5% 12,4% 11,3% 11,2% 12,9% 12,5% 13,6% 11,8% 12,4% 13,5% Stable sources of Funding Loans and Advances to customers 83.4% 83.7% 84.0% 83.2% 83.7% 83.4% 74.5% 77.0% 74.3% 74.3% 75.1% 73.7% Q 2014 (Core) Tier 1 Ratio Capital Adequacy Ratio Q % 92.0% 88.4% 89.3% 89.8% 88.3% Net loans/stable sources of funding (2) Liabilities structure (total as at 31 March 2014: PLN bn) Amounts due to customers 86% Debt securities in issue 7% Derivative financial instruments 2% Subordinated liabilities 1% Other liabilities 2% Amounts due to banks 2% Deposit structure (total as at 31 March 2014: PLN bn) Amounts due to corporate entities 19% Amounts due to retail clients 77% Amounts due to State budget entities 3% (1) % of Total Assets. (2) Stable sources of funding include amounts due to customers and external financing in the form of: issue of securities, subordinated liabilities and amounts due to financial institutions. 18

19 Long-term funding - maturity PLN bn 19

20 Summary financials CAGR Q'13 1Q'14 Change y/y Net interest income % % Net F&C income % % P&L items (PLN mn) Result on business activity % % Administrative expenses % % Net impairment allowance % % Net profit % % Assets % % Balance sheet (PLN bn) Net loans % % Deposits % % Stable financial resources % % Total equity % % 20

21 Key Performance indicators Change Q'13 1Q'14 Change y/y ROE net (%) pp pp. Basic financial indicators ROA net (%) pp pp. C/I (%) pp pp. NIM 2) (%) pp pp. Quality of loan portfolio NPL ratio (%) pp pp. Coverage ratio (%) pp pp. Cost of risk (bp.) Capital position CAR (%) pp pp. Core Tier 1 (%) pp pp. (1) Administrative expenses of last 4 quarters / result on business activity for last 4 quarters (2) Net interest margin = net interest income of last 4 quarters / average interest bearing assets at the beginning and the end of the period of last 4 quarters (formula consistent with that applied in the PKO Bank Polski Group Directors Report) (3) Share of loans with recognised impairment in total gross loans (4) Coverage of loans with recognised impairment with impairment allowances 21

22 Dividend policy - payout of excess capital Dividend policy assumptions adopted on 4 April 2012 To maintain a stable level of dividend payments in the long term, in compliance with the principles of prudent bank management and with consideration of the financial strength of the Bank and the Bank Group as determined on the basis of adopted criteria To optimize the capital structure, taking into account the return on capital and cost, capital needs for development, while ensuring appropriate capital adequacy ratio values To recommend in the future the payout of dividends in amounts ensuring that the capital adequacy ratios are maintained at the following levels: capital adequacy ratio of above 12 per cent while maintaining the necessary capital buffer common equity Tier 1 ratio of above 9 per cent while maintaining the necessary capital buffer Dividend for the year: DPS (PLN) Dividend yield (Div Day) Payout ratio n.a % % 61.12% % 40.15% % 74.75% % 97.65% % 34.71% % 40.07% % 47.87% % 47.71% % 66.18% 22

23 Selected Business Initiatives Nordea Bank Polska now part of the PKO Bank Polski Group PKO Bank Polski Group has expanded to include Nordea Bank Polska, Nordea Finance Polska and Nordea TUnŻ. Integration plans provide for completion of the process in 1H The acquisition commenced integration of the two banks; conceived as a two-step process. The first phase involves legal merger of the two entities while the second their operational integration. Until execution of the legal merger scheduled for early October Nordea Bank Polska continues as a separate entity forming part of the PKO Bank Polski Group. Within two weeks of completion of that legal merger. the PKO Bank Polski logo will replace the Nordea Bank Polska brand. PKO Bank Polski and EVO Payments International entered into a strategic alliance The Bank signed an agreement with a leading payment services operator active in US, Canada and Europe under which it sold a share stake in eservice and concluded a 20-year strategic alliance in the electronic payments market. The transaction was approved by the European Commission and by the end of 2013 PKO Bank Polski finalised the sale of a 66% equity interest in CEUP eservice. The alliance with an international technology partner will accelerate development of the company based on innovative solutions offered to the existing and future clients and customers. PKO Bank Polski applied to KNF for issuance of a permit for establishment of a mortgage bank A positive decision of the Polish Financial Supervision Authority (KNF) will open the way to the launch, at the turn of , of PKO Mortgage Bank, a new entity of the PKO Bank Polski Group. PKO Mortgage Bank will employ the agency model to provide loan origination and after-sale servicing in the entire retail network of PKO Bank Polski as well as those of its intermediaries and agents. The adopted business model provides for close cooperation of both the institutions involving outsourcing of specific functions. New local mobile payments standard PKO Bank Polski and five other banks came to an agreement on development of a new mobile payments standard for Poland, which would be based on the innovative IKO mobile payments solution PKO Bank Polski implemented. In December 2013 the aforementioned banks executed a joint investment agreement while in January 2014 they registered with the National Court Register the Polski Standard Płatności Sp. z o.o. company and are currently in the process of organising its operational launch. PKO Junior or banking for minors of up to 13 years of age The Bank launched one of the world s first internet banking services addressed to minors, a comprehensive financial education programme in itself. The new personal internet bank account enables children of up to 13 years of age to: collect their allowances and pocket money; initiate money transfers; save for specific purposes; and achieve challenging goals set by parents. Also, with the parents of children between ages of 0 and 12 years in mind the Bank developed the PKO Initial Capital deposit product. New retail network sales model The Bank has launched a retail network project aimed at strengthening its market leadership. The project s key pillars include: a new goal setting and rewards system; focus on profit driving activities and initiatives; and new management tools. Under the branch network regeneration scheme, the customers received 105 upgraded branch facilities in 2013 and over 200 such branches over also saw reorganisation of the Banks corporate outlet network and implementation of new standards in the work of customer advisers and specialists; all aimed at providing the customers with higher standard customer service efficiency and ensuring greater customer satisfaction at collaboration with the Bank. 23

24 Disclaimer This presentation (the Presentation ) has been prepared by Powszechna Kasa Oszczędności Bank Polski S.A. ( PKO BP S.A., Bank ) solely for use by its clients and shareholders or analysts and should not be treated as a part of any an invitation or offer to sell any securities, invest or deal in or a solicitation of an offer to purchase any securities or recommendation to conclude any transaction, in particular with respect to securities of PKO BP S.A. The information contained in this Presentation is derived from publicly available sources which Bank believes are reliable, but PKO BP SA does not make any representation as to its accuracy or completeness. PKO BP SA shall not be liable for the consequences of any decision made based on information included in this Presentation. The information contained in this Presentation has not been independently verified and is, in any case, subject to changes and modifications. PKO BP SA s disclosure of the data included in this Presentation is not a breach of law for listed companies, in particular for companies listed on the Warsaw Stock Exchange. The information provided herein was included in current or periodic reports published by PKO BP SA or is additional information that is not required to be reported by Bank as a public company. In no event may the content of this Presentation be construed as any type of explicit or implicit representation or warranty made by PKO BP SA or, its representatives. Likewise, neither PKO BP SA nor any of its representatives shall be liable in any respect whatsoever (whether in negligence or otherwise) for any loss or damage that may arise from the use of this Presentation or of any information contained herein or otherwise arising in connection with this Presentation. PKO BP SA does not undertake to publish any updates, modifications or revisions of the information, data or statements contained herein should there be any change in the strategy or intentions of PKO BP SA, or should facts or events occur that affect PKO BP SA s strategy or intentions, unless such reporting obligations arises under the applicable laws and regulations. This Presentation contains certain market information relating to the banking sector in Poland, including information on the market share of certain banks and PKO BP SA. Unless attributed exclusively to another source, such market information has been calculated based on data provided by third party sources identified herein and includes estimates, assessments, adjustments and judgments that are based on PKO BP SA s experience and familiarity with the sector in which PKO BP SA operates. Because such market information has been prepared in part based upon estimates, assessments, adjustments and judgments and not verified by an independent third party, such market information is, unless otherwise attributed to a third party source, to a certain degree subjective. While it is believed that such estimates, assessments, adjustments and judgments are reasonable and that the market information prepared is appropriately reflective of the sector and the markets in which PKO BP SA operates, there is no assurance that such estimates, assessments and judgments are the most appropriate for making determinations relating to market information or that market information prepared by other sources will not differ materially from the market information included herein. PKO BP SA hereby informs persons viewing this Presentation that the only source of reliable data describing PKO BP SA s financial results, forecasts, events or indexes are current or periodic reports submitted by PKO BP SA in satisfaction of its disclosure obligation under Polish law. This Presentation is not for release, directly or indirectly, in or into the United States of America, Australia, Canada or Japan. 24

25 Contact: PKO Bank Polski SA Investor Relations Office Lidia Wilk Director Pulawska Warsaw Poland Tel: Fax: PKO Bank Polski website: Investor s calendar: 1 September 2014 Publication of the Semi-Annual Report 1H November 2014 Publication of the Quarterly Report 3Q March 2015 Publication of the Annual Report 2014