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Maria Wisniewska - CEO

BANK PEKAO. Maria Wisniewska - CEO. 2 nd UCI INVESTOR DAY. Focus on New Europe. London, December 5 th , 2002. Agenda. Key Highlights Macroeconomic environment and banking industry Key achievements Financial results Asset Quality & Credit Policy 2003 Strategic Focus Conclusions.

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Maria Wisniewska - CEO

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  1. BANK PEKAO Maria Wisniewska - CEO 2nd UCI INVESTOR DAY Focus on New Europe London, December 5th, 2002

  2. Agenda Key Highlights Macroeconomic environment and banking industry Key achievements Financial results Asset Quality & Credit Policy 2003 Strategic Focus Conclusions

  3. BANK PEKAO ENJOYS LEADING MARKET POSITION AND EXCELLENT BRAND Euro mln, unconsolidated figures as at Sep 02, PAS(1) RANK Total Assets 16,261 2 Market share 17% Deposits(2) 12,359 2 Market share 16% Loans(2) 7,950 1 Market share 14% Asset Management 1,069 1 Market share 24%(3) Cards (market share) 27% 1 Net Income 112 1 CHANGE SINCE 99 Branches 828 +108 ATM’s 1,087 +467 Employees 17,233 -7,180 Number of clients, mln 3.7 o/w retail, mln 3.4 o/w corporate, mln 0.3 Cost/Income, % 45.6 ROE, % 9.1 (1) Polish Accounting Standards (2) Capital (3) Investment funds 1EURO=4.09 PLN

  4. Agenda Key Highlights Macroeconomic environment and banking industry Key achievements Financial results Asset Quality & Credit Policy 2003 Strategic Focus Conclusions

  5. POLAND AT A GLANCE • Polish economy decelerated in 2H01 mainly due to a substantial decline in domestic capital expenditure • Personal consumption played a leading part in keeping economic growth in positive territory (Real GDP growth in 2001 +1.0%) • Inflation rate is comparable with the EU level and stabilized • Strong decrease in interest rates (e.g. Ref.interest rate(1) dropped from 19.0% in 2000 to 11.5% in 2001) Country Year 2001 38.6 Population, mln 4.6 Per Capita GDP, Euro 3.6 Inflation rate, % 11.5 Ref. interest rate(1), % BBB+ S&P country rating • After two years of weak macroeconomic scenario, economic growth will accelerate in 2003 thanks to increasing domestic demand (consumption and investments) • Inflation rate to stay in the range of 1,5-4,0% • Convergence process in realm of interest rate will continue (further cuts expected in Ref. interest rate(1): -125 bp by 2004) 2002E 2003E 2004E 1.1 2.1 3.6 Real GDP growth, % 1.5 3.0 3.6 Inflation rate, % 6.75 6.25 5.5 Ref. interest rate(1) (1) Intervention Rate Source: Pekao estimates

  6. BANKING SECTOR IN POLAND Branches per mln inhabitants (Loans+Deposits)/GDP • The banking sector shows high growth potential to cover the gap in penetration ratios with EU • Strong presence of foreign banks (70% of banking sector assets) • Concentration of banking sector: 56% of assets held by top 5 players • Second wave of consolidation expected 580 203% 224 72.1% EU* EU* POLAND POLAND • Loans growth decelerated in 2002 due to weak macroeconomic environment, stronger investments will support lending already in 2003 • Lower interest rates, introduction of tax on interest gains and "consumption smoothing" effect negatively impacted deposits in 2002; recovery expected from 2003 • Spread expected to decrease in a convergence process 2001 2002E 2003E 2004E Loans growth, % 9.3 6.2 8.7 11.2 Deposits growth, % 8.0 -0.8 3.9 9.8 Rate on Loans(1), % 19.3 11.3 10.5 9.8 Rate on Dep.(1), % 11.5 4.2 3.9 3.5 Spread(1), % 7.8 7.1 6.6 6.3 (1) Average of end of period Banking System data; rates calculated based on local currency Loans and Deposits Source: Pekao estimates *Source: UCI NE Research Network

  7. Agenda Key Highlights Macroeconomic environment and banking industry Key achievements Financial results Asset Quality & Credit Policy 2003 Strategic Focus Conclusions

  8. PEKAO UNDERWENT A STRONG CULTURAL CHANGE ACHIEVING SIGNIFICANT RESULTS DURING THE LAST THREE YEARS • RESULTS ORIENTED CORPORATE CULTURE • ROE: from 3.7% in 1999 to 15% expected for 2002 • Cost/Income: from 67.5% in 1999 to 45.6% in 9M02 • IMPROVEMENT OF SALES CAPABILITIES • Total Revenues per employee more than doubled in three years (to Euro 47.3 th. in 9M02) • COST CONTROL AND COST CUTTING SYSTEM BUILT AS A CORE PART OF THE ORGANISATION • Total Costs: -5.6% from 9M99 to 9M02 in real terms • N° of employees: -7,180 (-29.4%) in three years • NEW, EFFICIENT MOTIVATION SYSTEMS • Approx.1,800 employees involved in MBO • 54 Managers involved in Stock Option Plan • HEAVY INVESTMENTS ON IT AND DISTRIBUTION CHANNELS • Branches: +108 (+15%) from 1999 to 9M02 • ATM’s: +467 (+75.3%) from 1999 to 9M02 • DIVISIONALISATION • Market segmentation implemented • New organisational structure in place

  9. Retail Banking • VIP/SME • VIP • Micro Corporates • Small Corporates VIP Mass Market Private Banking UNIQUE JOINT SERVICE MODEL FOR RETAIL AFFLUENT AND MICRO AND SMALL COMPANIES AIMED AT INCREASING THE BANK’S SHARE OF WALLET • Corporate Banking Middle Corporates • Large Corporates • Corporate Banking Micro Corporates Small Corporates Middle Corporates Large Corporates IMPROVED MARKET SEGMENTATION IS THE KEY PROJECT IN 2002 FOCUSED ON BETTER SERVICING OF EXISTING CUSTOMER BASE AND INCREASED CROSS-SELLING 2001 2002 • Mass Market • Private Banking

  10. Agenda Key Highlights Macroeconomic environment and banking industry Key achievements Financial results Asset Quality & Credit Policy 2003 Strategic Focus Conclusions

  11. SELECTIVE LENDING POLICY FOCUSED ON MORTGAGES IN LOCAL CURRENCY RETAIL LOANS(1) (Euro mln) • Mortgages show the highest growth in retail loans (Euro 87 mln, +18.3% on Dec.01) +1.7% -5.7% 18.3% -4.1% -33 -25 +87 • Other retail loans decreased due to cautious lending in difficult macroeconomic environment 1,669 1,698 • Corporate loans up 2.5% on Dec.01 excluding Shipyard & Central Invest. impact 2001 Other 9M02 Overdraft Mortgage • Pekao’s selective lending led to lower growth than industry CORPORATE LOANS(1) (Euro mln) +1.0% -35 +161 -66 TOTAL LOANS DYNAMIC(3) COMPARISON (9M02/2001) +6.2 6,252 6,193 +1.8 Polish Banking Sector Bank Pekao Central Invest.(2) Szczecin Shipyard 2001 Other 9M02 (1)Capital (2)Loan totally guaranteed by State Treasury in repayment period (3)Polish Central Bank data (excl. foreign branches)

  12. TOTAL DEPOSITS DOWN 4.9% ON DEC.01 MAINLY AFFECTED BY SEASONALITY IN CORPORATE DEPOSITS DEPOSITS INCL. INVESTMENT FUNDS (+53.4% on DEC.01) STABLE (-0.5% ON DEC.01) TOTAL DEPOSITS(2) RETAIL DEPOSITS(1) CORPORATE DEPOSITS(1) COMPARISON (9M02/2001) 9,614 9,542 Polish Banking Sector (Euro mln) Bank Pekao 4,236 4,228 3,180 2,816 440 -0.7% 310 5,378 5,314 -11.4% FX 2,740 2,506 PLN -3.9 2001 9M02 2001 9M02 -4.9 • Slight decrease in retail deposits (-0.7% on Dec01) compensated by growth in investment funds (Euro 372 mln in 9M02, +53.4% on Dec01) • Households savings market share (deposits + investment funds) stable at 18.4%. • Total assets managed by PPIM (Pekao Pioneer Investment Management) up to Euro 1,069 mln in Sep.02 (+241.8% y/y) with increased market share from 20.9 in Sep.01 to 24.9% in Sep02. • Equity linked deposits and tax-free products as a successful answer to customer needs in falling rates environment (approx. Euro 250 mln of Pekao tax free retail bonds sold in two weeks in November) (2)Polish Central Bank data (excl. foreign branches) (1)Capital

  13. TOTAL REVENUES DOWN 1.6% y/y DUE TO A DIFFICULT SCENARIO AND IN A CONTEXT OF SELECTIVE LENDING POLICY TOTAL REVENUES COMPARISON (Euro mln) -1.6% -0.9% -8.7% -0.6% Mainly a result of lower loan growth -1.7 -3.4 -7.8 +3.3 -1.6 828.4 815.5 POLISH BANKING SECTOR* BANK PEKAO Net Fees & Comm. Net Interest Income 9M01 Other 9M02 *Preliminary data, industry estimates • Net Interest Income (with SWAP)/Interest Bearing Assets ratio slightly down at 4.9% in 9M02 (5% in 9M01 and 2001 pro forma) • Fees and commissions/Total revenues up 20 bp y/y to 24.4% in 9M02 • Other revenues: decrease of income from subsidiaries by 12 mln (-71.3% y/y), decrease of result on financial transactions(1) by 10.3 mln, increase of net FX income by 7,4 mln (+9.5% y/y) and increase of other operating income(1) 7.1 mln (1)y/y % change n.m.

  14. NEARLY STABLE TREND IN NET COMMISSIONS (-0.9% y/y) NEGATIVELY IMPACTED BY DECREASED FEES ON LOANS (-28.8% y/y) COMPENSATED BY GROWING FEES FROM OTHER SOURCES (+7% y/y) NET FEES & COMMISSIONS COMPARISON (Euro mln) -0.9% -2.0% 142.3% -28.8% 7.0% +6.0 -1.5 +5.7 -10.3 +4.4 Result of lower loan growth 198.7 200.4 -0.9 POLISH BANKING SECTOR* BANK PEKAO Investment Funds 9M01 Account services Other 9M02 Loans *Preliminary data, industry estimates • Increase in other fees: commissions from account services up 7% (Euro +4.4 mln), fees from investment funds increased by 142.3% (Euro +5.7 mln) • Increased weight of fees and commissions from investment funds on Total fees and commissions from 0.1% in 9M01 to 3.0% in 9M02

  15. COSTS DOWN 7.5% THANKS TO EXCELLENT RESULTS IN COST CUTTING OPERATING COSTS COMPARISON (Euro mln) -9.9% -7.5% -38.7% -4.1% +4.6 -20.9 -7.6 -1.5 -7.5 371.7 401.7 POLISH BANKING SECTOR* BANK PEKAO Non Personnel(1) 9M01 BFG(2) 9M02 Personnel *Preliminary data, industry estimates • Conservative policy of cost control • Decrease of all categories of costs in both nominal (-7.5% y/y) and real terms (-8.8% y/y) • Lower cost of BFG caused by decrease of annual fee rate for BFG • Fees & Commissions revenues covered 105% of personnel costs, above internal target of 100% coverage (1)Included depreciation (2)Bank Guarantee Fund

  16. OPERATING INCOME UP 4.0% y/y; CONSERVATIVE PROVISIONING IMPACTS ON PRE TAX PROFIT OPERATING INCOME COMPARISON on Operating Income • OPERATING INCOME increased to Euro 444 mln in 9M02 (+4.0% y/y) despite difficult scenario, better than industry by 2.4 p.p. (Euro mln) +4.0% +4.0 443.8 426.7 +1.6 • Conservative PROVISIONS (+138.4% y/y, of which Euro 48.9 mln due to Szczecin Shipyard) determined a y/y PRE TAX PROFIT decrease of Euro 139 mln (-44.2% y/y) Polish Banking Sector* Bank Pekao 9M01 9M02 *Preliminary data, industry estimates PROVISIONS PRE TAX PROFIT (Euro mln) (Euro mln) +138.4% • NET PROFIT for 9M02 amounted to Euro 111.5 mln (-49.5% y/y) 313.9 268.7 175.1 112.7 -44.2% • ROE to 9.1% (-11.2 p.p. y/y) 9M01 9M02 9M01 9M02

  17. Agenda Key Highlights Macroeconomic environment and banking industry Key achievements Financial results Asset Quality & Credit Policy 2003 Strategic Focus Conclusions

  18. 19,7% 19,6% 53.5% 4.7% 15,0% 5.3% 49.5% 48.9% 3.9% 4.6% 3.8% 3.4% 7.1% 10.6% 11.1% 2001(2) 1H02 9M02 2001 1H02 9M02 WEAK MACROECONOMIC ENVIRONMENT IMPACTED NEGATIVELY ON ASSET QUALITY. SIGNS OF STABILISATION IN 3Q02 Irregular Loans(1) on Total Loans Provision Coverage Ratio Loss Doubtful Sub-standard (1)Including non banking financial institutions (2)Pro forma • Deteriorated macroeconomic environment impacted on retail and corporate loan portfolio mainly in 2Q02, stabilisation of quality in 3Q02 • Irregular on Total Loans ratio 1.3 p.p. better than the sector (as at June 02(3)) • Coverage ratio +5 p.p. than the sector (as at June 02(3)), improving significantly in 3Q02 reaching 53.5% as at Sep.02 Dec. 2001 9M 2002 % ch. on Dec.’01 1H02 (Euro mln) Sub-standard 358.2 425.2 370.7 +3,5% Doubtful 265.3 305.9 308.1 +16,1% Loss 556.7 854.0 880.0 +58,1% (3)Latest data available

  19. POLISH CLASSIFICATION RULES ARE DEMANDING • Polish classification of irregular loans is based on: • performance of the borrower (interest/capital credits that are not re-paid on time) • financial standing of the borrower (e.g. loans to companies which report a loss are automatically considered irregular even if they pay on time) • In 9M02: • 63.0% of Substandard loans • 18.0% of Doubtful • 0.6% of Loss were classified as irregular due to weak financial standing of the borrower but are performing • 22% of Pekao’s total classified as irregular loans are performing SHARE OF LOANS WHICH ARE PERFORMING CLASSIFIED AS IRREGULAR LOANS (9M02) 63.0% 18.0% 0.6% Sub-standard Doubtful Loss

  20. 4Q01-1Q02 1Q-2Q02 1Q-2Q02 May 02 May 02 Oct. 02 1Q03 1Q03 SIGNIFICANT EFFORT PUT ON IMPROVEMENT OF CREDIT POLICY MAIN ACTIONS PLANNED OR ALREADY IMPLEMENTED FOR IMPROVING CREDIT QUALITY IN 2002 AND FORWARD: • Training in the Credit and Corporate Area • Complete Credit Products review both in the Corporate and Retail Area • Strengthening of the lending criteria and increase of the requirements of collateral • Review of credit process to support new customer segmentation • Complete review of the monitoring process • Introduction of Application Processing System for Retail (Credit scoring system for Mass Market segment) • Introduction of a new Internal Rating System for Corporate Customers with better predictive capabilities • Introduction of Application Processing System for SME and Retail (VIP, Private Banking)

  21. Agenda Key Highlights Macroeconomic environment and banking industry Key achievements Financial results Asset Quality & Credit Policy 2003 Strategic Focus Conclusions

  22. STRATEGIC FOCUS FOR 2003: PROFITABILITY GROWTH, CONSOLIDATION OF EXISTING POSITION… COMMERCIAL PRIORITY ACTIONS: BY SEGMENTS • FOCUS ON MOST PROFITABLE SEGMENT: VIP/SME • New value added products to existing clients (i.e. Asset Management) • Increase of Pekao’s “share of wallet” of existing clients • New joint service for Small Business to cover both personal and business needs • New customers acquisition • CORPORATE BANKING • Selective approach for Large Corporates • MASS MARKET • Cost control and cross-selling • No customer base expansion BY PRODUCTS, supported by improved sales force effectiveness • COMMERCIAL PUSH ON EXISTING HIGHER MARGIN PRODUCTS (e.g. Equity linked products) • NEW PRODUCTS INTRODUCTION • INTRODUCTION/FINE TUNE SERVICE MODEL BY SEGMENT (branch model, client acquisition model, sales support tools, commercial performance monitoring tools) • BEST AVAILABLE PEOPLE AT ALL LEVELS (assessment, training, recruiting)

  23. FOCUS ON FURTHER DEVELOPMENT OF CORPORATE RELATIONSHIP MANAGERS AND CREDIT OFFICERS SKILLS (assessment, training, recruiting) • IMPROVED MONITORING CAPABILITIES AND APPROPRIATE EVALUATION OF EARLY WARNING SIGNALS • IMPROVED RECOVERY PROCESS (timing, % of recovery) … AND CONTROL OF CREDIT RISK • DEVELOPMENT OF TWO PILOT CREDIT PROJECTS: • Underwriting for Retail and SME • Work out

  24. Agenda Key Highlights Macroeconomic environment and banking industry Key achievements Financial results Asset Quality & Credit Policy 2003 Strategic Focus Conclusions

  25. PEKAO IS READY TO STRENGTHEN ITS POSITION, BENEFITING FROM RECOVERY IN ECONOMY • Consolidation of clear leadership in the Polish Banking Sector • Pekao recognised as one of the most efficient players in Central and Eastern Europe • Further improvement in profitability by more detailed customer segmentation and new product mix development • Strong support of strategic Shareholder

  26. Annexes

  27. ORGANISATIONAL STRUCTURE OF THE GROUP FULLY IN LINE WITH CUSTOMER SEGMENTATION Standard Banking and Network Management Corporate and International Banking Alternative Distribution Channels Private Banking VIP/SME Brokerage House Pekao Leasing Pekao Factoring Access Pekao Ukraina Pekao Tel-Aviv Pekao Pioneer IM Pekao Pioneer PTE Pekao Informatyka Pekao Development Pekao Fundusz Kapitałowy Pekao Financial Services Trinity Management

  28. PEKAO COMPLETED AN INNOVATIVE DIVISIONALISATION PROCESS, AIMING AT SIGNIFICANTLY INCREASING COMMERCIAL EFFECTIVENESS FOUR BUSINESS UNITS WITH DEDICATED CHANNELS AND SERVICE MODELS Affluent & Small Business Corporate Private Mass Corp.Hubs Corp.Hubs Corp.Hubs • Retain affluent clients • Gain new clients • Increase share of wallet • Leverage on existing resources • 800 fully dedicated Sales Managers • 125 dedicated Branches • Dedicated financial advisors • Separate location to provide “exclusive” service • 25 corporate hubs and 5 corporate regions • Clear cost effectiveness • Improved service to clients through product specialists • Improved share of wallet/ profitability • Revenues growth by cross selling • Cost effectiveness/ Multichannel usage • 828 Branches • 4,700 mass Customers Service Representatives

  29. MACROECONOMIC ENVIRONMENT IN 2003 2001 2002e 2003e Domestic Demand -2,0% 0,4% 2,6% Consumption 1,3% 1,6% 1,6% Investment -2,4% -1,2% 0,9% Gov. consumption 0,1% 0,1% 0,0% Stock building -1,0% -0,1% 0,1% External demand 3,0% 0,7% -0,5% Export 3,0% 0,5% 1,2% Import 0,0% -0,1% 1,7% GDP 1,0% 1,1% 2,1% Source: Pekao estimates

  30. DOUBTFUL LOANS DEFINITIONS - RECONCILIATION BETWEEN ITALIAN AND POLISH RULES ITALY POLAND NOTE: In UCI consolidated financial statement polish “Loss” are typically classified as “NPL”, and polish “Substandard” & “Doubtful” are typically “Watchlist”. A final credit assessment is in any case made on a single position evaluation basis • STANDARD • IN BONIS • WATCH • UNDER RESTRUCTURING • RESTRUCTURED • SUBSTANDARD • WATCHLIST • DOUBTFUL • NPL • LOSS

  31. POLISH CLASSIFICATION RULES ARE DEMANDING SHARE OF LOANS WHICH ARE PERFORMING CLASSIFIED AS IRREGULAR LOANS (9M02) PAS ITAS Euro bn 9M02 Euro bn 9M02 Gross Loans Prov. Net Loans Net Loans Prov.* Gross Loans* 63.0% 0.2 1.3 Loss 0.9 0.7 NPL 0.2 1.1 Doubtful 0.2 0.3 0.1 18.0% Substand. Watchlist 0.3 0.7 0.4 0.05 0.6 0.2 0.6% Total Doubtful Total NPL 0.8 2.0 1.6 0.8 0.8 1.2 Sub-standard Doubtful Loss • Polish classification criteria have three classes of irregular loans versus two in Italy • Polish presentation standards are based on gross loans while Italian ones on the net loans Standard 6.2 6.2 0.007 Watch Perform. 0.3 6.5 0.3 0.005 6.5 0.01 TOTAL 8.2 0.8 7.3 TOTAL 7.3 1.2 8.5 * gross risk group loans and provisions include amounts of overdue interest, which under Polish accounting are presented separately

  32. 1H01 1H02 16.4% 18.9% 21.9% 25.6% 15.2% 4.6% 8.2% 16.7% 6.3% 4.7% 4.5% 7.9% 6.7% 5.4% 5.2% 6.4% 5.2% 6.1% 7.7% 6.4% LOAN PORTFOLIO STRUCTURE BY INDUSTRIAL SECTORS Utilities Wholesale Construction Transport Financial services Production of food Other manufacturing Production of transport equipment Public administration Other

  33. PEKAO 9M02 UNCONSOLIDATED INCOME STATEMENT Ch. % Sept. 02/ Sept. 01 (Euro mln, PAS) Ch. % 2001/2000 Dec. 00 Dec. 01 Sep. 01 Sept. 02 Interest margin (incl. div.) -0.6 663.1 745.6 12.4 537.7 534.4 Net non interest income 336.8 396.0 17.6 290.7 281.1 -3.3 999.9 1,141.6 14.2 828.4 815.5 -1.6 Total revenues -558.3 -537.7 -3.7 -401.7 -371.7 -7.5 Operating costs (incl. dep.) -295.7 -279.4 -5.5 -210.5 -189.6 -9.9 - of which: Staff costs 441.6 603.9 36.7 426.7 443.8 4.0 Net operating income -160.4 -161.1 0.4 -106.6 -268.1 -151.4 Net loan loss provisions -6.3 -12.4 -96.9 -6.0 -0.5 -91.1 Other provisions 0.05 0.12 140.0 0.0 0.0 n.m. Extraordinary income/loss 275.1 430.4 56.4 314.0 175.2 -44.2 Pre-tax profit/loss -88.5 -122.1 +37.9 -93.3 -56.3 -39.6 Taxes 186.6 308.3 65.2 220.8 111.5 -49.5 Net income Tax rate, % 32.2% 28.4% 29.7% 33.5% Balance due to roundings & share in net profit (loss) of subsidiaries evaluated at equity method

  34. PEKAO 9M02 UNCONSOLIDATED BALANCE SHEET Ch. % Sept. 02/ Sept. 01 Ch. % Sept. 02/ Dec. 01 (Euro mln, PAS) Sept. 01 Dec. 01 Sept. 02 613.3 1,038.6 705.3 15.0 -32.1 Cash and deposits with Central Banks Loans due from: 7,974.9 7,791.7 7,350.0 -7.8 -5.7 - Customers 2,320.8 2,183.7 1,726.4 -25.6 -20.9 ASSETS - Financial Institutions 5,380.4 5,133.1 5,541.5 3.0 8.0 Securities 395.7 436.8 470.6 18.9 7.7 Fixed assets 1,546.5 1,362.2 467.6 -69.8 -65.7 Other assets 18,231.6 17,946.1 16,261.3 -10.8 -9.4 TOTAL ASSETS AND LIABILITIES Deposits: 12,627.9 12,689.3 12,237.5 -3.1 -3.6 - Due to Customers 989.8 967.8 618.4 -37.5 -36.1 - Due to Central Bank 722.3 820.1 1,059.7 -11.9 -31.8 - Due to Financial Institutions 148.9 92.8 93.5 -37.2 0.8 Reserve fund for possible loan losses LIABILITIES 2,074.4 1,478.2 928.3 -55.2 -37.2 Other liabilities 1,570.4 1,658.3 1,661.2 5.8 0.2 Shareholders’ equity Balance due to roundings

  35. PEKAO 9M02 CONSOLIDATED INCOME STATEMENT Ch. % Sept. 02/ Sept. 01 (Euro mln, PAS) Ch. % 2001/2000 Dec. 00 Dec. 01 Sep. 01 Sept. 02 Interest margin (incl. div.) 666.1 762.5 14.5 536.7 549.2 2.3 Net non interest income 433.0 407.4 -5.9 333.5 291.2 -12.7 Total revenues 1,099.1 1,169.9 6.4 870.2 840.4 -3.4 -646.7 -574.5 -11.2 -457.9 -397.5 -13.2 Operating costs (incl. dep.) -327.0 -300.9 -8.0 -225.6 -204.1 -9.5 - of which: Staff costs Net operating income 452.4 595.4 31.6 412.2 442.8 7.4 -172.0 -157.9 -8.1 -104.0 -275.2 +164.6 Net loan loss provisions 9.5 -10.5 n.m. -5.1 -2.4 -52.9 Other provisions -6.6 2.5 n.m. 0.0 0.0 n.m. Extraordinary income/loss 286.3 431.7 50.8 304.0 166.9 -45.1 Pre-tax profit/loss -94.0 -127.1 +35.2 -95.9 -58.5 -39.0 Taxes n.m. 0.3 0.0 n.m. 0.0 1.3 Minorities Net income 194.4 306.2 57.5 206.6 107.7 -47.9 Tax rate, % 32.8% 29.4% 31.6% 35.1% Balance due to roundings, goodwill & share in net profit (loss) of subsidiaries evaluated at equity method

  36. PEKAO 9M02 CONSOLIDATED BALANCE SHEET Ch. % Sept. 02/ Sept. 01 Ch. % Sept. 02/ Dec. 01 (Euro mln, PAS) Sept. 01 Dec. 01 Sept. 02 614.1 1,042.5 709.6 15.5 -31.9 Cash and deposits with Central Banks Loans due from: 8,153.1 8,056.5 7,661.6 -6.0 -4.9 - Customers 2,190.7 2,117.3 1,523.9 -30.4 -28.0 ASSETS - Banks 5,344.5 5,014.5 5,561.3 4.1 10.9 Trading Securities 522.1 454.0 478.4 -8.4 5.4 Fixed assets 1,577.5 1,437.7 453.9 -71.2 -68.4 Other assets 18,402.1 18,122.6 16,388.8 -10.9 -9.6 TOTAL ASSETS AND LIABILITIES Deposits: 12,713.3 12,790.9 12,346.6 -2.9 -3.5 - Due to Customers 989.8 967.8 618.4 -37.5 -36.1 - Due to Central Bank 629.7 773.3 -18.6 -35.2 971.2 - Due to Banks 146.1 101.0 -30.8 7.4 94.1 Reserve fund for possible loan losses LIABILITIES 1,717.5 2,199.3 1,014.8 -53.9 -40.9 Other liabilities 0 6.2 n.m. -17.3 7.5 Minority interest 1,580.0 1,672.0 5.8 6.3 Shareholders’ equity 1,573.5 Balance due to roundings

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