PKO BP presentation 1Q 2014

Financial Results ofFinancial Results ofFinancial Results ofFinancial Results ofthethethethe PKO Bank Polski SA GroupPKO Bank Polski SA GroupPKO Bank Polski SA GroupPKO Bank Polski SA Groupthethethethe PKO Bank Polski SA GroupPKO Bank Polski SA GroupPKO Bank Polski SA GroupPKO Bank Polski SA Groupfor for for for 1Q 20141Q 20141Q 20141Q 2014„PKO Bank Polski. „PKO Bank Polski. „PKO Bank Polski. „PKO Bank Polski. TheTheTheThe Best Best Best Best EveryEveryEveryEvery Day”Day”Day”Day”

Warsaw, 15 May 2014

1. 1. 1. 1. Executive summaryExecutive summaryExecutive summaryExecutive summary 3333

2. 2. 2. 2. Financial resultsFinancial resultsFinancial resultsFinancial results 14141414

3. 3. 3. 3. Risk managementRisk managementRisk managementRisk management 28282828

4. 4. 4. 4. Business activityBusiness activityBusiness activityBusiness activity 33333333

5.5.5.5. AAAAppendixppendixppendixppendix 39393939

Executive summary

� In the first quarter of 2014, PKO Bank Polski has focused on stable growth and the closing of the acquisition of the In the first quarter of 2014, PKO Bank Polski has focused on stable growth and the closing of the acquisition of the In the first quarter of 2014, PKO Bank Polski has focused on stable growth and the closing of the acquisition of the In the first quarter of 2014, PKO Bank Polski has focused on stable growth and the closing of the acquisition of the NordeaNordeaNordeaNordea assets in Poland. In line with the strategy, the Bank has maintained the high efficiency, has continued assets in Poland. In line with the strategy, the Bank has maintained the high efficiency, has continued assets in Poland. In line with the strategy, the Bank has maintained the high efficiency, has continued assets in Poland. In line with the strategy, the Bank has maintained the high efficiency, has continued investments in new technologies and has gradually reduced the cost of riskinvestments in new technologies and has gradually reduced the cost of riskinvestments in new technologies and has gradually reduced the cost of riskinvestments in new technologies and has gradually reduced the cost of risk

� NNNNet profit of the PKO Bank Polski Group generated in the first quarter of this year amounted to PLN 803 mn and was et profit of the PKO Bank Polski Group generated in the first quarter of this year amounted to PLN 803 mn and was et profit of the PKO Bank Polski Group generated in the first quarter of this year amounted to PLN 803 mn and was et profit of the PKO Bank Polski Group generated in the first quarter of this year amounted to PLN 803 mn and was PLN 16.2 mn higher than in the corresponding period of 2013 (+2.1% y/y)PLN 16.2 mn higher than in the corresponding period of 2013 (+2.1% y/y)PLN 16.2 mn higher than in the corresponding period of 2013 (+2.1% y/y)PLN 16.2 mn higher than in the corresponding period of 2013 (+2.1% y/y) whichwhichwhichwhich was dwas dwas dwas drivenrivenrivenriven by:by:by:by:� improvement of result on business activities (+PLN 20.2 mn y/y) � improvement of result on business activities (+PLN 20.2 mn y/y) � improvement of net impairment allowance (+PLN 34.5 mn y/y), mainly as a result of a decrease of impairment

allowances on consumer and corporate loans portfolios• Expansion of the operating baseExpansion of the operating baseExpansion of the operating baseExpansion of the operating base

� Assets increased to PLN 203 bn (+3.2% y/y) as net loans increased to PLN 150 bn (+1.7% y/y), funded through increase in deposits from customers to PLN 153 bn (+2.8% y/y) and bonds issue in the amount of EUR 500 mn

� Cost discipline and improved portfolio qualityCost discipline and improved portfolio qualityCost discipline and improved portfolio qualityCost discipline and improved portfolio quality� Stabilisation of operating costs in annual terms (+0.5% y/y)� Reduction of the cost of risk by 14 bp. y/y, improvement in coverage ratio by 1.8 pp. y/y and decline in NPLs by

1.1 pp. y/y� Retention of high operational efficiencyRetention of high operational efficiencyRetention of high operational efficiencyRetention of high operational efficiency

� Cost / Income ratio (C/I) at 43.1%� Return on Equity (ROE) at 13.1%

3333

� Return on Equity (ROE) at 13.1%� Return on Assets (ROA) at 1.6%� Interest margin at 3.7%

� Strong liquidity and capital positionStrong liquidity and capital positionStrong liquidity and capital positionStrong liquidity and capital position� Loans / Stable funding resources at 88%� Capital Adequacy Ratio at 13.5% (Core Tier 1 at 12.4%)

Selected Business Initiatives of Q1 2014Selected Business Initiatives of Q1 2014Selected Business Initiatives of Q1 2014Selected Business Initiatives of Q1 2014

NordeaNordeaNordeaNordea Bank Bank Bank Bank PolskaPolskaPolskaPolska now part of the PKO Bank Polski Group now part of the PKO Bank Polski Group now part of the PKO Bank Polski Group 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 2015. 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 2014. 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 applied to KNF for issuance of a permit for establishment of a mortgage bankPKO Bank Polski applied to KNF for issuance of a permit for establishment of a mortgage bankPKO Bank Polski applied to KNF for issuance of a permit for establishment of a mortgage bankPKO Bank Polski applied to KNF for issuance of a permit for establishment of a mortgage bank

Account for the YoungAccount for the YoungAccount for the YoungAccount for the YoungAll students and university graduates within the 18–26 age bracket qualify for the new Account for the Young. Core of the offer consists of a no-service-charge savings and checking account combined with a package of loan and deposit products. Benefits of the offer include, among others,free-of-charge: account servicing, cash withdrawals in all ATM in Poland and worldwide, internet enabled bank transfers.

PKO Bank Polski applied to KNF for issuance of a permit for establishment of a mortgage bankPKO Bank Polski applied to KNF for issuance of a permit for establishment of a mortgage bankPKO Bank Polski applied to KNF for issuance of a permit for establishment of a mortgage bankPKO Bank Polski applied to KNF for issuance of a permit for establishment of a mortgage bankA positive decision of the Polish Financial Supervision Authority (KNF) will open the way to the launch, at the turn of 2014–15, 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.

IKO for minorsIKO for minorsIKO for minorsIKO for minorsPKO Bank Polski has made the IKO money purse available to children of below 13 years of age. Minors can now make small phone settled purchases

PKO Bank Polski joins the Housing for the Young government schemePKO Bank Polski joins the Housing for the Young government schemePKO Bank Polski joins the Housing for the Young government schemePKO Bank Polski joins the Housing for the Young government schemePKO Bank Polski was the first to sign an agreement of cooperation with BGK within the framework of a government sponsored financial support and state subsidy scheme for first home purchases. As of 2 January 2014, the Bank’s customers can file applications for loans subsidized under the Housing for the Young scheme; addressed specifically to couples, single-parents and singles of up to 35 years of age.

4444

PKO Bank Polski has made the IKO money purse available to children of below 13 years of age. Minors can now make small phone settled purchases and ATM cash withdrawals under parental control. The IKO money purse for children of below 13 years of age is a perfect match and complement to the PKO Junior offer, which has been enormously popular with the PKO customers.

Contactless payments and QR codes for UPTs of PKO Bank PolskiContactless payments and QR codes for UPTs of PKO Bank PolskiContactless payments and QR codes for UPTs of PKO Bank PolskiContactless payments and QR codes for UPTs of PKO Bank PolskiPKO Bank Polski is the first in the market to provide unattended payment terminals (UPT) with a functionality enabling contactless payments with Mastercard PayPass and Visa payWave. The solution simplifies and speeds up payment of taxes and other local charges, e.g. for issuance of a driver’s license or an ID card. The unattended payment terminals of PKO Bank Polski represent a novel alternative to a bank teller window.

PKO Bank PKO Bank PKO Bank PKO Bank Polski’sPolski’sPolski’sPolski’s new marketing communication platformnew marketing communication platformnew marketing communication platformnew marketing communication platform„Organism” is the Bank’s newest marketing concept replacing the previous communications involving Szymon Majewski. The new concept is designed to reinforce the desirable attributes of the PKO brand through originality and humorous nature of the creation, and a long term cultivation of a consistent message. The earlier Szymon Majewski driven marketing communication was emblematic of PKO Bank Polski’s bold, modernising changes.

Plan for integration of the Plan for integration of the Plan for integration of the Plan for integration of the NordeaNordeaNordeaNordea assets assumes assets assumes assets assumes assets assumes completioncompletioncompletioncompletion ofofofofthe main stage of works in Q2 2015the main stage of works in Q2 2015the main stage of works in Q2 2015the main stage of works in Q2 2015

+6M +7M0 +1M +2M +3M +4M +5M +8M +9M +10M +11M +12M-1M

March April May June July August Sept October Nov Dec Jan Febr March April

Court register entryCourt register entryCourt register entryCourt register entry

Legal mergerLegal mergerLegal mergerLegal merger RebrandingRebrandingRebrandingRebranding Operational mergerOperational mergerOperational mergerOperational mergerMileMileMileMile----

stonesstonesstonesstones ClosingClosingClosingClosingKNF KNF KNF KNF

decisiondecisiondecisiondecision

GSMGSMGSMGSM

Legal Legal Legal Legal mergermergermergermerger

Migration toMigration toMigration toMigration tothe PKO the PKO the PKO the PKO systemssystemssystemssystems

• Forced share buyoutForced share buyoutForced share buyoutForced share buyout• Adoption of the merger planAdoption of the merger planAdoption of the merger planAdoption of the merger plan• Application to KNF for its consentApplication to KNF for its consentApplication to KNF for its consentApplication to KNF for its consent to to to to merger of the banksmerger of the banksmerger of the banksmerger of the banks

Transaction Transaction Transaction Transaction closing closing closing closing

Court register entryCourt register entryCourt register entryCourt register entry

• Transfer of controlTransfer of controlTransfer of controlTransfer of control

GSMGSMGSMGSM

"Small"Small"Small"Small----scale" rebranding scale" rebranding scale" rebranding scale" rebranding

The The The The NordeaNordeaNordeaNordea network starts servicing network starts servicing network starts servicing network starts servicing PKOPKOPKOPKO clientsclientsclientsclients

RebrandingRebrandingRebrandingRebranding

TransTransTransTrans----actionactionactionaction

Nordea Nordea Nordea Nordea Bank Bank Bank Bank

PolskaPolskaPolskaPolska

5555

RebrandingRebrandingRebrandingRebranding Bank assumes a Joint Venture with strategic Bank assumes a Joint Venture with strategic Bank assumes a Joint Venture with strategic Bank assumes a Joint Venture with strategic insurance partner with insurance partner with insurance partner with insurance partner with complicomplicomplicompliaaaancencencence to to to to Recommendation U requirementsRecommendation U requirementsRecommendation U requirementsRecommendation U requirements

Legal merger and migration of the leasing businessLegal merger and migration of the leasing businessLegal merger and migration of the leasing businessLegal merger and migration of the leasing business

Transfer of controlTransfer of controlTransfer of controlTransfer of control

Transfer of controlTransfer of controlTransfer of controlTransfer of control

Nordea Nordea Nordea Nordea LifeLifeLifeLife

Nordea Nordea Nordea Nordea FinanceFinanceFinanceFinance



RebrandingRebrandingRebrandingRebranding

Consolidated data

1Q'141Q'141Q'141Q'14 1Q'131Q'131Q'131Q'13Change Change Change Change

y/yy/yy/yy/yQ4'13Q4'13Q4'13Q4'13

Change Change Change Change q/qq/qq/qq/q

Net interest incomeNet interest incomeNet interest incomeNet interest income 1 7401 7401 7401 740 1 7531 7531 7531 753 -0.7%-0.7%-0.7%-0.7% 1 7151 7151 7151 715 +1.5%+1.5%+1.5%+1.5%

FinancialFinancialFinancialFinancial Summary * Summary * Summary * Summary *

P&LP&LP&LP&L itemsitemsitemsitems(PLN mn)(PLN mn)(PLN mn)(PLN mn)

Balance sheet Balance sheet Balance sheet Balance sheet (PLN bn)(PLN bn)(PLN bn)(PLN bn)

Net interest incomeNet interest incomeNet interest incomeNet interest income 1 7401 7401 7401 740 1 7531 7531 7531 753 -0.7%-0.7%-0.7%-0.7% 1 7151 7151 7151 715 +1.5%+1.5%+1.5%+1.5%

Net F&C incomeNet F&C incomeNet F&C incomeNet F&C income 705705705705 718718718718 -1.7%-1.7%-1.7%-1.7% 815815815815 -13.4%-13.4%-13.4%-13.4%

Result on business activityResult on business activityResult on business activityResult on business activity 2 5482 5482 5482 548 2 5282 5282 5282 528 +0.8%+0.8%+0.8%+0.8% 3 1763 1763 1763 176 -19.8%-19.8%-19.8%-19.8%

Administrative expensesAdministrative expensesAdministrative expensesAdministrative expenses -1 126-1 126-1 126-1 126 -1 120-1 120-1 120-1 120 +0.5%+0.5%+0.5%+0.5% -1 281-1 281-1 281-1 281 -12.1%-12.1%-12.1%-12.1%

Net impairment allowance Net impairment allowance Net impairment allowance Net impairment allowance -413-413-413-413 -448-448-448-448 -7.7%-7.7%-7.7%-7.7% -683-683-683-683 -39.5%-39.5%-39.5%-39.5%

Net prof it Net prof it Net prof it Net prof it 803803803803 786786786786 +2.1%+2.1%+2.1%+2.1% 938938938938 -14.5%-14.5%-14.5%-14.5%

0000AssetsAssetsAssetsAssets 203.2203.2203.2203.2 196.8196.8196.8196.8 +3.2%+3.2%+3.2%+3.2% 199.2199.2199.2199.2 +2.0%+2.0%+2.0%+2.0%

Net loansNet loansNet loansNet loans 149.7149.7149.7149.7 147.1147.1147.1147.1 +1.7%+1.7%+1.7%+1.7% 149.6149.6149.6149.6 +0.0%+0.0%+0.0%+0.0%

Deposits Deposits Deposits Deposits 152.7152.7152.7152.7 148.4148.4148.4148.4 +2.8%+2.8%+2.8%+2.8% 151.9151.9151.9151.9 +0.5%+0.5%+0.5%+0.5%

6666

(PLN bn)(PLN bn)(PLN bn)(PLN bn) Deposits Deposits Deposits Deposits 152.7152.7152.7152.7 148.4148.4148.4148.4 +2.8%+2.8%+2.8%+2.8% 151.9151.9151.9151.9 +0.5%+0.5%+0.5%+0.5%

Stable f inancial resourcesStable f inancial resourcesStable f inancial resourcesStable f inancial resources 169.5169.5169.5169.5 163.5163.5163.5163.5 +3.7%+3.7%+3.7%+3.7% 166.7166.7166.7166.7 +1.7%+1.7%+1.7%+1.7%

Total equityTotal equityTotal equityTotal equity 25.925.925.925.9 25.225.225.225.2 +3.1%+3.1%+3.1%+3.1% 25.225.225.225.2 +3.1%+3.1%+3.1%+3.1%

*) Due to a change in the accounting principles applicable to recognition of insurance products related revenues and expenses, relevant data in respect of the previous periods have been restated to ensure comparability.

Consolidated data

1Q'141Q'141Q'141Q'14 1Q'131Q'131Q'131Q'13Change Change Change Change

y/yy/yy/yy/yQ4'13Q4'13Q4'13Q4'13

Change Change Change Change q/qq/qq/qq/q

ROE net (%)ROE net (%)ROE net (%)ROE net (%) 13.113.113.113.1 14.714.714.714.7 -1.6 pp.-1.6 pp.-1.6 pp.-1.6 pp. 13.213.213.213.2 -0.1 pp.-0.1 pp.-0.1 pp.-0.1 pp.

Key performance indicators*Key performance indicators*Key performance indicators*Key performance indicators*

Quality of loan pottfolioQuality of loan pottfolioQuality of loan pottfolioQuality of loan pottfolio

ROA net (%)ROA net (%)ROA net (%)ROA net (%) 1.61.61.61.6 1.81.81.81.8 -0.2 pp.-0.2 pp.-0.2 pp.-0.2 pp. 1.61.61.61.6 0.0 pp.0.0 pp.0.0 pp.0.0 pp.

C/IC/IC/IC/I1)1)1)1) (%) (%) (%) (%) 43.143.143.143.1 41.541.541.541.5 +1.7 pp.+1.7 pp.+1.7 pp.+1.7 pp. 43.243.243.243.2 -0.1 pp.-0.1 pp.-0.1 pp.-0.1 pp.

NIMNIMNIMNIM2)2)2)2) (%) (%) (%) (%) 3.73.73.73.7 4.44.44.44.4 -0.7 pp.-0.7 pp.-0.7 pp.-0.7 pp. 3.73.73.73.7 0.0 pp.0.0 pp.0.0 pp.0.0 pp.

NPL ratioNPL ratioNPL ratioNPL ratio3)3)3)3) (%) (%) (%) (%) 8.18.18.18.1 9.29.29.29.2 -1.1 pp.-1.1 pp.-1.1 pp.-1.1 pp. 8.28.28.28.2 -0.1 pp.-0.1 pp.-0.1 pp.-0.1 pp.

Coverage ratioCoverage ratioCoverage ratioCoverage ratio4)4)4)4) (%) (%) (%) (%) 52.552.552.552.5 50.650.650.650.6 +1.8 pp.+1.8 pp.+1.8 pp.+1.8 pp. 51.751.751.751.7 +0.8 pp.+0.8 pp.+0.8 pp.+0.8 pp.

Cost of risk (bp. )Cost of risk (bp. )Cost of risk (bp. )Cost of risk (bp. ) 126126126126 140140140140 -14 -14 -14 -14 131131131131 -5 -5 -5 -5

Basic financial indicatorsBasic financial indicatorsBasic financial indicatorsBasic financial indicators

7777

Capital positionCapital positionCapital positionCapital position

CAR (%)CAR (%)CAR (%)CAR (%) 13.513.513.513.5 13.613.613.613.6 -0.1 pp.-0.1 pp.-0.1 pp.-0.1 pp. 13.613.613.613.6 -0.1 pp.-0.1 pp.-0.1 pp.-0.1 pp.

Core Tier 1Core Tier 1Core Tier 1Core Tier 1 (%) (%) (%) (%) 12.412.412.412.4 12.612.612.612.6 -0.2 pp.-0.2 pp.-0.2 pp.-0.2 pp. 12.512.512.512.5 -0.1 pp.-0.1 pp.-0.1 pp.-0.1 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


Macroeconomic trends

GDP and decomposition of growth rate (% y/y) Labour market (%)

Unemployment rate

Unemployment rate. LFS1)

1

2

Domestic demand-led recovery with external risks

13 .513 .513 .513 .5

9 .89 .89 .89 .88

10

12

14

16

4 .24 .24 .24 .2

3 .73 .73 .73 .73

4

5

6

7

Nominal wagesNominal wagesNominal wagesNominal wages

Employment growth (y/y)

Wages growth in enterprises (% y/y)

Unemployment rate. LFS

3

Having reached a cyclical trough in Q1-Q2 2013, economic growth accelerated to 2.7% y/y in Q4 2013. High-frequency indicators suggest GDP topped 3% in 1Q 2014, driven by strong domestic demand (both consumption and investments). We believe domestic demand should accelerate further in the coming quarters. Tensions between Russia and Ukraine are the main risk for Poland’s growth outlook – in our base-case scenario we estimate this factor could shave off 0.3-0.6pp from GDP.

1

0 .50 .50 .50 .5

-4

-2

0

2

4

6

8

8888

3 .73 .73 .73 .7

-2

-1

0

1

2

3

Real wages

estimate this factor could shave off 0.3-0.6pp from GDP. Consequently, we expect 2.8-3% GDP growth in 2014.

Labour market is improving. Unemployment trend has reversed, with the unemployment rate down -0.8pp y/y in 1Q (vs. 0.0pp y/y in Q4, and +1%ish increase in 1H 2013). This is consistent with an acceleration in GDP growth to around potential growth (~3%).

2

Higher nominal wage growth – combined with low inflation –boosts real wages. Real wage growth (3.7%) is the strongest since late-2008/early-2009, boosting private consumption.

3

(1) Percentage share of the number of unemployed population in the number of economically active population (i.e. employed and unemployed persons); consistent with the EU methodology.

4 .174 .174 .174 .17

3 .423 .423 .423 .42

4

5

PLN/CHFPLN/CHFPLN/CHFPLN/CHF

PLN/EUR3

Inflation rate (% y/y) PLN exchange rates

Macroeconomic trends

Inflation has bottomed out, monetary policy neutral until early-2015

3

4

5CPICPICPICPI

3 .033 .033 .033 .03

2

3

PLN/USD

1

Interest rates (% eop)

5-year yield

CPI inflation remained stable in 1Q 2014 (0.7% y/y in March –unchanged from December 2013), as negative base effects from fuel prices were offset by a decline in food prices. We believe inflation has bottomed out and expect a gradual pick-up from 2Q 2014 onwards. with the headline CPI up to ~1.5% in June and ~2% in December, driven by a rebound in core inflation and a reversal in food price trends, from 2Q2014 onwards and to reach the lower bound of the NBP’s inflation target (2.5%+/- 1%pt) by June 2014.

1

6

0 .70 .70 .70 .7

1 .11 .11 .11 .1

0

1

2 Core inflationCore inflationCore inflationCore inflation

9999

WIBOR 3MWIBOR 3MWIBOR 3MWIBOR 3M 2

Reference rate

In March 2014 the MPC pledged not to change interest rates (policy rate: 2.50%) at least until September 2014. We expect this ‚forward guidance’ to be extended to December 2014 ath the MPC’s July meeting, with March 2015 being the most likely timing of the start of monetary policy normalization.

2

Despite China’s economic slowdown and escalating tensions between Ukraine and Russia, the PLN has remained very stable recently, partly due to prospects of a solid domestic demand recovery.

3

bound of the NBP’s inflation target (2.5%+/- 1%pt) by June 2014.

2,502,502,502,50

3,763,763,763,76

2,712,712,712,71

2

3

4

5

Loan growth rates (% y/y) Mutual funds market (PLN bn)

Housing

3

Banking sectorStable deposits, accelerating credit

15

20

25

30 191.9

150

165

180

195

5

7

9

11

13

1

Housing

Consumer

Corporate

Private individuals

Deposit growth rates (% y/y)

Total

Faster total credit growth in 1Q 2014 (4.7% y/y), driven by acceleration in consumer credit (3.7%), faster corporate loans growth (3.8%) and stable mortgages growth (4.3%), (NB. Our 2014-2015 forecasts on the following page).

1

2

3 .73 .73 .73 .7

4 .34 .34 .34 .33 .83 .83 .83 .8

4 .74 .74 .74 .7

-10

-5

0

5

10

15

,

15

20

90

105

120

135

150

-5

-3

-1

1

3

5

net inflow

net mutual fund assets

10101010

TotalCorporates

2

Acceleration in total deposits growth in 1Q 2014 (6.2% y/y) – net effect of a relatively stable household deposits dynamics (5.6%), slower growth in corporate deposits (7.3%), and higher public sector deposits. The Loan-to-Deposit stabilized at 106%.

2

Weaker q/q inflows into mutual funds in 1Q 2014 – despite a rise in real disposable income, low interest rates on bank deposits and rising equity prices – largely reflect seasonality in inflows to closed-end funds (used tor tax optimization purposes).

3

6 .26 .26 .26 .25 .65 .65 .65 .6

7 .37 .37 .37 .3

-10

-5

0

5

10

2014-2015 macroeconomic and banking sector outlook

Deposits Deposits Deposits Deposits ---- FX adjusted growth rateFX adjusted growth rateFX adjusted growth rateFX adjusted growth rate (%)(%)(%)(%)2012201220122012 2013201320132013 2014F2014F2014F2014F 2015F2015F2015F2015F

GDPGDPGDPGDP % y/y 2.02.02.02.0 1.61.61.61.6 2.82.82.82.8 4.04.04.04.0

ConsumptionConsumptionConsumptionConsumption % y/y 1.31.31.31.3 0.80.80.80.8 3.53.53.53.5 4.24.24.24.2 9 .29 .29 .29 .2

9 .79 .79 .79 .7

6 .26 .26 .26 .27 .97 .97 .97 .9

10 .210 .210 .210 .2

13 .313 .313 .313 .3

8 .68 .68 .68 .6

5 .75 .75 .75 .7 6 .86 .86 .86 .88 .18 .18 .18 .1

6 .26 .26 .26 .29 .39 .39 .39 .3

LoansLoansLoansLoans---- FX adjusted growth rate (%)FX adjusted growth rate (%)FX adjusted growth rate (%)FX adjusted growth rate (%)

InvestmentsInvestmentsInvestmentsInvestments % y/y -1.6-1.6-1.6-1.6 -0.2-0.2-0.2-0.2 8.58.58.58.5 10.010.010.010.0

Public sector deficitPublic sector deficitPublic sector deficitPublic sector deficit1)1)1)1) % GDP -3.9-3.9-3.9-3.9 -4.3-4.3-4.3-4.3 4.94.94.94.9 -3.5-3.5-3.5-3.5

Public debtPublic debtPublic debtPublic debt2)2)2)2) % GDP 52.752.752.752.7 53.853.853.853.8 47.647.647.647.6 47.547.547.547.5

CPICPICPICPI % 3.73.73.73.7 0.90.90.90.9 1.41.41.41.4 2.42.42.42.4

Unemployment rateUnemployment rateUnemployment rateUnemployment rate % eop 13.413.413.413.4 13.413.413.413.4 12.512.512.512.5 10.910.910.910.9

WIBOR 3MWIBOR 3MWIBOR 3MWIBOR 3M % eop 4.114.114.114.11 2.712.712.712.71 2.712.712.712.71 4.204.204.204.20

6 .66 .66 .66 .65 .65 .65 .65 .6

6 .26 .26 .26 .25 .75 .75 .75 .7

6 .26 .26 .26 .2

6 .86 .86 .86 .8

5 .55 .55 .55 .54 .24 .24 .24 .2 5 .45 .45 .45 .4

2010 2011 2012 2013 2014F 2015F

TotalPrivate individualsInstututional entites

8 .08 .0 9 .59 .5

16 .016 .016 .016 .0

11 .511 .511 .511 .5

7 .27 .2

10 .110 .110 .110 .1 11 .311 .311 .311 .3

16 .216 .216 .216 .2

11111111Source: Bank’s forecasts.

1) According to the ESA95 methodology . with one-off capital transfer due to pension funds asset transfer; without the transfer. the public sector deficit in 2014 remains close to 2013; at -4.1% GDP.

2) According to domestic methodology.

Reference rate Reference rate Reference rate Reference rate % eop 4.254.254.254.25 2.502.502.502.50 2.502.502.502.50 4.004.004.004.00

PLN/EUR exchange ratePLN/EUR exchange ratePLN/EUR exchange ratePLN/EUR exchange rate PLN eop 4.094.094.094.09 4.154.154.154.15 4.154.154.154.15 4.004.004.004.00

PLN/USD exchange ratePLN/USD exchange ratePLN/USD exchange ratePLN/USD exchange rate PLN eop 3.103.103.103.10 3.013.013.013.01 3.143.143.143.14 2.822.822.822.82

7 .17 .17 .17 .111 .011 .011 .011 .0

4 .74 .74 .74 .7

4 .24 .24 .24 .2

8 .08 .08 .08 .0 9 .59 .59 .59 .57 .27 .27 .27 .26 .46 .46 .46 .4

1 .11 .11 .11 .1

---- 3 .43 .43 .43 .4

----3 .93 .93 .93 .9

2 .52 .52 .52 .5

4 .84 .84 .84 .87 .37 .37 .37 .3

4 .54 .54 .54 .55 .95 .95 .95 .9

3 .33 .33 .33 .3

7 .67 .67 .67 .6 8 .98 .98 .98 .9

2010 2011 2012 2013 2014F 2015F

TotalRetail MortgageConsumerInstitutional entites

146 156166 173

189 1926.56.56.56.5 6.56.56.56.5

6.76.76.76.76.96.96.96.9 6.96.96.96.9

7.17.17.17.17.47.47.47.4

7.67.67.67.6 7.77.77.77.7

6.0

7.0

8.0

120

160

200

240%

PLN bn

19.2 18.9 19.0 19.0 19.0 19.0 19.0 19.1 19.2

16.416.416.416.4 16.016.016.016.0 16.016.016.016.0 16.116.116.116.1 16.316.316.316.3 16.116.116.116.1 16.116.116.116.1 16.116.116.116.1 15.815.815.815.8

15.0

20.0

Standalone data

2

Market share

Total

Loans market share (%) Mutual funds market share

Private individuals

127 129 133146 156

3.0

4.0

5.0

0

40

80

120

1Q'12 2Q'12 3Q'12 4Q'12 1Q'13 2Q'13 3Q'13 4Q'13 1Q'14

Total assets of mutuals funds (PLN bn)PKO TFI market share (%)

22.3 22.0 21.9 21.8 22.1 22.2 22.2 21.7 21.4

17.517.517.517.5 17.417.417.417.4 16.916.916.916.9 16.816.816.816.8 16.716.716.716.7 16.516.516.516.5 16.216.216.216.2 16.316.316.316.3 16.316.316.316.3

20.0

25.0

13.513.0 13.0 13.2

13.6 13.3 13.2 13.112.6

10.0

15.0

1Q'12 2Q'12 3Q'12 4Q'12 1Q'13 2Q'13 3Q'13 4Q'13 1Q'14

1

Deposits market share (%)

Private individuals

Institutional entities

Decrease in market share by 0.5 pp q/q mainly due to lower market share in loans to non-monetary financial institutions

1

12121212

11.2 11.510.5 10.2

9.5 8.9 8.69.4 9.4

16.916.916.916.9 16.816.816.816.8 16.716.716.716.7 16.516.516.516.5 16.216.216.216.2 16.316.316.316.3 16.316.316.316.3

5.0

10.0

15.0

1Q'12 2Q'12 3Q'12 4Q'12 1Q'13 2Q'13 3Q'13 4Q'13 1Q'14

Total

Institutional entities

Growth of PKO TFI’s market share in total assets of mutual funds by 0.8 pp. y/y thanks to higher than market growth rate (+38% y/y vs. +22% y/y for the market).

2

1. Executive summary 3

2. Financial results 14

3. Risk management 28

4. Business activity 33

5. Appendix 39

ResultResultResultResult on business activityon business activityon business activityon business activity Gross profitGross profitGross profitGross profit

958

1 2131 0032 528

3 176

2 548

+0.8%

-19.8%

+4.7%

-17.3%

Profit and loss account*

Consolidated data

Total administrative expensesTotal administrative expensesTotal administrative expensesTotal administrative expenses Income taxIncome taxIncome taxIncome tax

Net impairment allowanceNet impairment allowanceNet impairment allowanceNet impairment allowance NetNetNetNet profitprofitprofitprofit

-1 120-1 281

-1 126

Q1'13 Q4'13 Q1'14

-172

-276

-204

Q1'13 Q4'13 Q1'14

Q1'13 Q4'13 Q1'14Q1'13 Q4'13 Q1'14

+ +

+0.5%+19.0%

-25.9%-12.1%

14141414

Net impairment allowanceNet impairment allowanceNet impairment allowanceNet impairment allowance NetNetNetNet profitprofitprofitprofit

-448-683

-413

Q1'13 Q4'13 Q1'14786

938803

Q1'13 Q4'13 Q1'14

% %

-7.7%

-39.5%

+2.1%

-14.5%

Change y/y Change q/q


PLN mn 1Q'131Q'131Q'131Q'13 Q4'13Q4'13Q4'13Q4'13 1Q'141Q'141Q'141Q'14Change Change Change Change

y/yy/yy/yy/yChange Change Change Change

q/qq/qq/qq/q

Net interest income 1 753 1 715 1 740 -0.7% +1.5%28.4% 27.7%

2.3%

20.4%

4.0%

RRRResultesultesultesult on business activityon business activityon business activityon business activity

Split of result on business activitySplit of result on business activitySplit of result on business activitySplit of result on business activity

Consolidated data

Net F&C result 718 815 705 -1.7% -13.4%

Other income 58 647 103 +78.1% -84.1%

Result on financial operations and didvidens

28 23 20 -29.5% -12.3%

Net FX result -12 99 49 x -51.1%

Net other income 42 525 34 -17.7% -93.4%

69.3%

54.0%

68.3%

25.7%

1Q'13 Q4'13 1Q'14

1

15151515

Result on business Result on business Result on business Result on business activityactivityactivityactivity

2 5282 5282 5282 528 3 1763 1763 1763 176 2 5482 5482 5482 548 +0.8%+0.8%+0.8%+0.8% -19.8%-19.8%-19.8%-19.8%

1Q'13 Q4'13 1Q'14

Net interest income Net F&C result Other income

Increase due to inclusion in this item of income of PLN 315 mn from the sale in Q4’13 of a 66% interest in the eService subsidiary and income of PLN 162 mn on fair value adjustment of the remaining eService share interest

1

1 7531 628 1 627

1 715 1 740

4.13.6 3.5

3.7 3.9

1 000

1 500

2 000

1.5

2.0

2.5

3.0

3.5

4.0

Net interest income (1)

Net interst income (PLN mn)

Consolidated data

Interest income and expense (PLN mn) and WIBOR 3M average in the period

1

2 9462 754

2 551 2 513 2 467

3.77

3.60

4.00

4.40

4.80

5.20

5.60

1 500

2 000

2 500

3 000

3 500

+1.5%

0

500

0.0

0.5

1.0

1.5

Q1'13 Q2'13 Q3'13 Q4'13 Q1'14

Net interest income quarterly Net interest margin quarterly

7.37.0

6.56.1

5.94.4 4.2 3.9 3.7 3.74.0

5.0

6.0

7.0

8.0%

Net Interest margin and average interest rates on loans and deposits

2

1 194 1 126924 798 727

2.972.70 2.67 2.71

2.00

2.40

2.80

3.20

3.60

0

500

1 000

1 500

Q1'13 Q2'13 Q3'13 Q4'13 Q1'14

interest income interest expense WIBOR 3M (%)

In 1Q’14 net interest income remained at a stable level y/y, mainly due to decrease in interest expense by PLN 466.8 mn y/y, mainly due to adaptation of the price conditions of the deposit offer to a drop in market interest rates,along with a decrease in interest income by PLN 479.7 mn y/y, determined by the fall in market interest rates

1

16161616

3.1 3.02.7

2.32.0

0.0

1.0

2.0

3.0

4.0

1Q'13 2Q'13 3Q'13 4Q'13 1Q'14

Average interest rate on loans 12M (1)

Average interest rate on deposits 12M (1)

Net interest margin 12M (2)

(1) Interest income (expense) for last 4 quarters / average net loans (deposits) at the beginning and the end of the period of last 4 quarters(2) Net Interest income for 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)

Interest margin dropped by 0.7 pp. y/y as a result of a decrease in annualized net interest income (due to a drop in market interest rates causing directly accelerated decrease in interest-bearing assets mostly based on market rates rather than due to the decline in interest rates of the deposit offer), accompanied by an increase in the volume of average interest-bearing assets (mainly the portfolio of loans and advances to customers)

2

Consolidated data

Net interest incomeNet interest incomeNet interest incomeNet interest income (2) (2) (2) (2)

309

246

148

88

54

38

2 946 2 946 2 946 2 946

2 467 2 467 2 467 2 467 124

122

14

13

1 1941 1941 1941 194

727727727727

Structure of interest expense (PLN mn)

Structure of interest income (PLN mn)

1-39 .1%-39 .1%-39 .1%-39 .1%

-2.1%2

-16 .3%-16 .3%-16 .3%-16 .3%

-20.2%

-40.5%

2 436 2 094

1Q'13 1Q'14

Customer loans SecuritiesDerivative hedging instruments Other

1 055

592

122

1Q'13 1Q'14

Customer deposits Debt securities in issue Other

3

4

6

7%

Interest rates on term deposits vs. WIBOR 3M

-43.9%-14.0%

Income declined mainly as a result of a drop in average interest rate,

Decrease in income resulting from narrowing of the spread between the PLN and foreign currency rates resulting from the drop in the WIBOR market rates and the drop in the average volume of CIRS transactions in hedge accounting

1

2

17171717

0

1

2

3

4

5

6

average interest rate on term deposits averege WIBOR 3M

Income declined mainly as a result of the drop in PLN interest rates, which for WIBOR 1M and 3M rates on an annual basis amounted to 0.78 pp. and 0.68 pp. respectively

Costs of amounts due to customers were reduced as a result of lower average interest rates on deposits due to a drop in market interest rates, adaptation of the price offer of deposit products and the change of the structure in favour of current deposits, accompanied by an increase in amounts due to customers by PLN 4.2 bn y/y

Income declined mainly as a result of a drop in average interest rate, accompanied by an increase in the volume of average securities portfolio

4

3

2

152.7152.7152.7152.7

Consolidated data

Structure of deposit base as compared to competitors

Structure of total deposits by client typeStructure of total deposits by client typeStructure of total deposits by client typeStructure of total deposits by client type1) 1) 1) 1)

(as at 31.03.2014)Deposits structure in Polish banksDeposits structure in Polish banksDeposits structure in Polish banksDeposits structure in Polish banks(as at 31.03.2014 in PLN bn)

82.4

54.241.1 43.3

26.4

70.3

58.8

39.023.6

37.2

152.7152.7152.7152.7

113.0113.0113.0113.0

80.180.180.180.1

66.966.966.966.9 63.663.663.663.6

PKO BP Bank 2 Bank 3 Bank 4 Bank 5

77.2%

47.5%60.1% 67.4% 54.7%

19.3%

44.7%34.7% 29.6% 44.1%

3.5% 7.8% 5.2% 3.0% 1.2%

PKO BP Bank 2 Bank 3 Bank 4 Bank 5deposits of retail clientsdeposits of corporate entities

2

1

46.0%

54.0%

52.0%

48.0%

48.6%

51.4%

58.5%

41.5%

35.3%

64.7%

18181818

term deposits+other current deposits + O/N deposits of corporate entitiesdeposits of State budget entites

PKO Bank Poski has the largest share of retail deposits resulting in lower elasticity of changes in financial conditions in the short term

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 tothe an increase in interest costs

21

Source: banks’ consolidated financial statements

(1) Amounts due to customers

253 258

718718718718 705705705705

Net fee and commission income (PLN mn)

Net F&C income Consolidated data

718 717 757

815

705

1y/y/y/y/yyyy q/q/q/q/qqqq

+1.7%

-1 . 7%-1 . 7%-1 . 7%-1 . 7%-13 . 4%-13 . 4%-13 . 4%-13 . 4%

-14.3%

188 169

100 109

176 169

253 258

1Q'13 1Q'14Loans & insurance

Q1'13 Q2'13 Q3'13 Q4'13 Q1'14

+1.7% -14.3%

-4.3%-16.8%

+9.4% -13.5%

-9.8% -8.1%

19191919

Loans & insuranceMutual funds & brokerageCardsCustomer accounts & other

Net fee & commission income was primarily determined by: − decrease in income in respect of loans and advances granted− decrease in net commission income on loan insurance, mainly due to a decrease in insurance saturation of consumer loans − lower result on payment cards, mainly due to a decrease in income from the rental of authorisation devices in connection with the sale of a 66% interest in

eService in the fourth quarter of 2013 − decrease in commission income in respect of cash transactions, due to development of electronic banking services− growth of commission income from servicing of bank accounts, which is a result of changes in tariff of fees and charges introduced in 2013Sale of a stake in eService and the exclusion of its revenues from the consolidation resulted in a reduction in the 1Q’14 F&C income by approximately PLN 30 mn. Had income from that source been included, the growth in net F&C income in the 1Q’14 would have reached nearly +2.5% y/y

1

103103103103

647

Net other income (PLN mn)

Net Net Net Net otherotherotherother incomeincomeincomeincome

1 y/y/y/y/yyyy q/q/q/q/qqqq

+78. 1%+78. 1%+78. 1%+78. 1%

-84. 1%-84. 1%-84. 1%-84. 1%

Consolidated data

Effect of theeServicetransaction

2820

-12

4942

3458585858

1Q'13 1Q'14

Net income from financial instruments and didvidendsNet FX gainsNet other operating income

58

133 141103

Q1'13 Q2'13 Q3'13 Q4'13 Q1'14

-17.7%

-29.5%

-93.4%

-51.1%

-12.3%

20202020

Net other operating income

In Q4’13 net other operating income included income on the sale of a 66% stake in the eService subsidiary amounting PLN 315 mn and on fair value readjustment of the remaining share interest in the eService amounting PLN 162 mn

1

1 120 1 106 1 116

1 281

1 126

372 370

138 167

1 1201 1201 1201 120 1 1261 1261 1261 126

Administrative expenses (PLN mn)Administrative expenses (PLN mn)Administrative expenses (PLN mn)Administrative expenses (PLN mn)

Administrative expenses

Consolidated data

1

y/y/y/y/yyyy q/q/q/q/qqqq

+0.5%+0.5%+0.5%+0.5%-12.1%-12.1%-12.1%-12.1%

+21.0% +18.0%

-0.4%-13.3%

Q1'13 Q2'13 Q3'13 Q4'13 Q1'14

41.5 43.1 44.7 43.2 43.1

610 589

1Q'13 1Q'14

Personnel expenseNon-personnel & other expenseDepreciation

Employment (FTEs)Employment (FTEs)Employment (FTEs)Employment (FTEs) eopeopeopeop

C/I ratio

-13.3%

-3.5% -17.4%

FTEs %1Q'141Q'13

Change y/y

21212121

1Q'13 1H'13 3Q'13 2013 1Q'14

FTEs %

Bank 25 128 24 373 -755 -3.0%

Group 28 246 27 504 -742 -2.6%

Value of general and administrative expenses was primarily determined by: − an increase of PLN 13.9 mn y/y in expenses on contributions and payments to the Bank Guarantee Fund, as a result of introducing a prudential fee in Q4’13− an increase in amortization and depreciation expense of PLN 29.0 mn y/y, as a result of an increase in amortization expense of intangible assets concerning IT− decrease in employee benefits by PLN 21.3 mn y/y− decrease in overheads by PLN 14.8 mn y/y, i.a. due to decrease in cost of promotion and advertising, maintenance and rental of fixed assets, and

telecommunicationThe reduction of administrative expenses in 1Q’14 partly due to the exclusion of eService from the consolidation as a result of sale in Q4’13 66% stake in this company

1

140140140140

135135135135

129129129129131131131131

126126126126

125

130

135

140

145

-350

-250

-150

-50

-82-42

-14-20

29

1Q'13 1Q'14

Net impairment allowance and write-offs (PLN mn)

Net impairment allowance

Consolidated data

y/y/y/y/yyyy q/q/q/q/qqqq

+40.8%

-10.6%-48.3%

-61.3%

PLN mn bp.

----448448448448 ----419419419419----488488488488

----683683683683

----413413413413

100

105

110

115

120

-750

-650

-550

-450

-350

Q1'13 Q2'13 Q3'13 Q4'13 Q1'14

Net impairment allowance (PLN mn)Cost of risk 12M (bp.)

-14

-381

-348

-4

----448448448448

----413413413413

Consumer loans 1) Mortgage loans 1) 2)

Corporate loans 1) Other

Share of loans with recognized impairment3)

1Q'13 1Q'14 Change y/y

Consumer loans 9.8% 9.3% -0.5 pp.

1-7.7%-7.7%-7.7%-7.7% -39.5%-39.5%-39.5%-39.5%

-8.8%-24.9%

+40.8%

1

22222222

Consumer loans 9.8% 9.3% -0.5 pp.

Mortgage loans 3.8% 3.5% -0.3 pp.

PLN 3.6% 3.0% -0.6 pp.

FX 4.1% 4.8% +0.7 pp.

Corporate loans 14.2% 12.6% -1.6 pp.

TotalTotalTotalTotal 9.2%9.2%9.2%9.2% 8.1%8.1%8.1%8.1% -1.1 pp.-1.1 pp.-1.1 pp.-1.1 pp.

Improvement of net impairment allowance in 1Q’14 compared with the corresponding period of the previous year, as well as compared to previous quarter, is mainly a result of a decrease of impairment allowance on consumer and corporate loans portfolio

1

(1) management accounts data (2) Housing loans to individuals (3) Calculated by dividing the gross carrying amount of impaired loans and advances to customers by the gross carrying amount of loans and advances to customers

Consolidated balance sheetConsolidated balance sheetConsolidated balance sheetConsolidated balance sheet

Total Total Total Total assetsassetsassetsassets

Consolidated data

74.7% 73.7%

3.7% 4.1% Other assets

Loans and advances to customers

Securities

Derivative financial

PLN bn 31.03.1331.03.1331.03.1331.03.13 31.03.1431.03.1431.03.1431.03.14 Change y/yChange y/yChange y/yChange y/y

Cash and balances with the Cen.Bank 7.8 9.6 +23.2%

Amounts due from other banks 1.7 5.0 +189.1%

Derivative financial instruments 3.5 2.7 -20.7%

Securities 29.5 27.9 -5.5%

Total equity and Total equity and Total equity and Total equity and liabilitiesliabilitiesliabilitiesliabilities

3.9% 4.7%0.9% 2.5%1.8% 1.4%

15.0% 13.7%

31.03.13 31.03.14

Derivative financial instruments

Amounts due from other banks

Cash and balances with the Cen.Bank

5.6% 6.2%0.8% 0.8%1.5% 1.4%

12.8% 12.8%Total eqiuty

Other liabilities

Subordinated liabilities

Debt securities in issue

Securities 29.5 27.9 -5.5%

Loans and advances to customers 147.1 149.7 +1.7%

Other assets 7.2 8.3 +14.7%

Total asse tsTotal asse tsTotal asse tsTotal asse ts 196.8196.8196.8196.8 203.2203.2203.2203.2 +3.2%+3.2%+3.2%+3.2%

PLN bn 31.03.1331.03.1331.03.1331.03.13 31.03.1431.03.1431.03.1431.03.14 Change y/yChange y/yChange y/yChange y/y

Amounts due to banks 4.1 4.4 +7.8%

Derivative financial instruments 3.6 3.1 -13.9%

Amounts due to customers 148.4 152.7 +2.8%

Debt securities in issue 10.9 12.7 +16.2%

1

23232323

2.1% 2.2%1.8% 1.5%

75.4% 75.2%

31.03.13 31.03.14

Debt securities in issue

Amounts due to customers

Derivative financial instruments

Amounts due to banks

Debt securities in issue 10.9 12.7 +16.2%

Subordinated liabilities 1.6 1.6 -0.0%

Other liabilities 3.0 2.8 -7.9%

Total eqiuty 25.2 25.9 +3.1%

Total eqiuty and liabilit iesTotal eqiuty and liabilit iesTotal eqiuty and liabilit iesTotal eqiuty and liabilit ies 196.8196.8196.8196.8 203.2203.2203.2203.2 +3.2%+3.2%+3.2%+3.2%2

Balance sheet total increased as a result of obtaining proceeds from a bonds issue by PKO Finance AB in the amount of EUR 500 mn and due to increase in the deposit base

2

As at the end of the 1Q’14, the structure of assets was driven by changes in the loan and advances portfolio, as well as remained under the influence of the finalstages of the purchase of Nordea Group’s assets

1

Loans and deposits

Gross loans (PLN bn) Deposits(1) (PLN bn)

Currency structure of gross loans porfolio Term structure of total deposits1)

Consolidated data

1Q'131Q'131Q'131Q'13 1H'131H'131H'131H'13 3Q'133Q'133Q'133Q'13 2013201320132013 1Q'141Q'141Q'141Q'14

154.3154.3154.3154.3 155.9155.9155.9155.9 156.5156.5156.5156.5 156.3156.3156.3156.3 156.3156.3156.3156.3

1Q'131Q'131Q'131Q'13 1H'131H'131H'131H'13 3Q'133Q'133Q'133Q'13 2013201320132013 1Q'141Q'141Q'141Q'14

148.4148.4148.4148.4 149.2149.2149.2149.2 150.9150.9150.9150.9 151.9151.9151.9151.9 152.7152.7152.7152.7

21.9% 21.8% 20.4% 20.4% 20.1%

Banking Banking Banking Banking sector sector sector sector 1Q’141Q’141Q’141Q’14

99.6%

40.6% 42.3% 44.5% 45.3% 46.0%

59.4% 57.7% 55.5% 54.7% 54.0%

1Q'13 1H'13 3Q'13 2013 1Q'14

current+O/N term+other

78.1% 78.2% 79.6% 79.6% 79.9%70.3%

21.9% 21.8% 20.4% 20.4% 20.1%29.7%

1Q'13 1H'13 3Q'13 2013 1Q'14

FX PLN

24242424

(1) Amounts due to customers

99.1% 99.6% 99.2% 98.5% 98.0%

89.9% 90.6% 90.3% 89.8% 88.3%

1Q'13 1H'13 3Q'13 2013 1Q'14

Net loans/deposits Net loans/stable sources of funding (2)

(2) Amounts due to customers and long-term external funding in the form of: securities issues (including funds raised through issuance under an EMTN programme executed by PKO Finance AB), subordinated debt and amounts due to financial institutions

Debt securities in issue7%

Subordinated

Amounts due to corporate entities

19%

Amounts due to

Consolidated data

Funding sources

Liabilities structureLiabilities structureLiabilities structureLiabilities structure(total as at 31 March 2014: PLN 177.2 bn)

Deposit structureDeposit structureDeposit structureDeposit structure(total as at 31 March 2014: PLN 152.7 bn)

Amounts due to banks

2%

Derivative financial

instruments2%

Amounts due to customers

86%

Subordinated liabilities

1%Other liabilities

2%

Amounts due to State budget

entities3%

Amounts due to retail clients

77%

• Retail and corporate deposits are the primary funding source.

• Financing agreements as at the end of 1Q 2014 included:

− CHF 410 mn 3-year credit facility opened in July 2012

25252525

− CHF 410 mn 3-year credit facility opened in July 2012

− EUR 800 mn 5Y Eurobonds raised in October 2010

− CHF 250 mn 5Y bonds issued in July 2011

− CHF 500 mn 3.25 Y bonds issued in September 2012

− USD 1.000 mn 10Y notes issued in September 2012 on the US market under Rule 144A

− EUR 500 mn 5Y bonds issued in January 2014

− PLN 700 mn domestic issue (short term)

Securities portfolioSecurities portfolioSecurities portfolioSecurities portfolio brakdownbrakdownbrakdownbrakdownConsolidated data

12.8 13.7 14.1 14.1 16.8

0.03 0.05 0.03 0.04 0.1829 .5 29 .5 29 .5 29 .5 29 .8 29 .8 29 .8 29 .8 28 .7 28 .7 28 .7 28 .7 29 .8 29 .8 29 .8 29 .8

27 .9 27 .9 27 .9 27 .9

41% 29%

10% 13%5% 7% Other debt securuties

Local government debt securuties

NBP money market

Trading assets Trading assets Trading assets Trading assets Financial assets designatedFinancial assets designatedFinancial assets designatedFinancial assets designated at fair at fair at fair at fair

value through P&Lvalue through P&Lvalue through P&Lvalue through P&L(ALPL)(ALPL)(ALPL)(ALPL)

Investment securities Investment securities Investment securities Investment securities available for saleavailable for saleavailable for saleavailable for sale

(AFS) (AFS) (AFS) (AFS)

Structure as at the 1Q 2014 endStructure as at the 1Q 2014 endStructure as at the 1Q 2014 endStructure as at the 1Q 2014 end

2.6 3.4 2.0 0.5 1.5

14.1 12.7 12.5 15.2 9.4

1Q'13 1H'13 3Q'13 2013 1Q'14

Trading ALPL AFS HTM

45% 51%

1Q' 13 1Q'14

NBP money market bills

Issued by State Treasury

Issued by local

government Issued by

local

26262626

Issued by State

Treasury95%

Eqiuty securities

1%

Issued by local

government bodies

3%

Other debt securuties

2%

Issued by State

Treasury

12%

NBP money

market bills

85%

government

bodies

3%Issued by

State

Treasury

69%

local

government

bodies

20%

Equity

securities

1%

Other debt

securuties

10%

Executive summaryExecutive summaryExecutive summaryExecutive summary 3333

Financial resultsFinancial resultsFinancial resultsFinancial results 14141414

Risk managementRisk managementRisk managementRisk management 28282828

Business activityBusiness activityBusiness activityBusiness activity 33333333

AAAAppendixppendixppendixppendix 39393939

50.6% 51.2% 51.4% 51.7%52.5%

50.8% 51.5% 51.8% 52.0%52.8%

9.2%9.2%9.2%9.2% 9.1%9.1%9.1%9.1%8.6%8.6%8.6%8.6%

8.2%8.2%8.2%8.2% 8.1%8.1%8.1%8.1%

8.6%8.6%8.6%8.6% 8.4%8.4%8.4%8.4%8.0%8.0%8.0%8.0% 8.0%8.0%8.0%8.0%

8.0%

9.0%

10.0%

160

180

200

Share of loans with recognised impairment and cost of risk

Coverage of loans with recognised impairment by impairment allowance

Quality of loan portfolioConsolidated data

1 2

10.0%

Q1'13 Q2'13 Q3'13 Q4'13 Q1'14

Group Bank

140140140140 135135135135 129129129129 131131131131 126126126126140140140140 135135135135 129129129129

120120120120 115115115115

8.4%8.4%8.4%8.4%8.0%8.0%8.0%8.0% 8.0%8.0%8.0%8.0% 7.8%7.8%7.8%7.8%

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

0

20

40

60

80

100

120

140

Q1'13 Q2'13 Q3'13 Q4'13 Q1'14

Cost of risk for last 12M (bp) Group Cost of risk for last 12M (bp) Bank

Share of impaired loans (Group) Share of impaired loans (Bank)

Quality of loan porfolio vs. bankig sectorDecrease in the share of impaired loans, mainly as a result of conducted non-performing loans package sales

1

28282828

2.0%

4.0%

6.0%

8.0%

Q1'13 Q2'13 Q3'13 Q4'13 Q1'14Share of impaired loans (sector)Share of loans delayed past due over 90 days (sector)Share of impaired loans (PKO BP)Share of loans delayed past due over 90 days (PKO BP)

Source: for the banking sector own calculations based on KNF data

conducted non-performing loans package sales

Continuation of the gradual increase in the value of the coverage ratio for loans to customers with recognised impairment

2

3.0% 2.8% 2.6% 2.6% 2.4%

8.6%8.6%8.6%8.6% 8.4%8.4%8.4%8.4%8.0%8.0%8.0%8.0% 8.0%8.0%8.0%8.0% 7.8%7.8%7.8%7.8%

Other loans

Share of loans with recognised impairment

Standalone data

1

51.5% 51.8% 52.0% 52.8%53.6% 53.2% 52.0% 52.2% 51.8%

71.9% 70.5% 69.3% 71.3% 70.6%

Quality of loan portfolio

Coverage of loans with recognised impairment by impairment allowance

5.6% 5.7% 5.4% 5.4% 5.4%

2.6% 2.6% 2.4%

Q1'13 Q2'13 Q3'13 Q4'13 Q1'14

228 227 225

203 202211

194181

195177

Loans delayedpast due over90 days1)

Other loans

Cost of risk of last 12M (bp.)

50.8% 51.5% 51.8% 52.0% 52.8%

45.2% 46.4% 47.4% 47.2% 48.9%53.6% 53.2% 52.0% 52.2% 51.8%

Q1'13 Q2'13 Q3'13 Q4'13 Q1'14

Total Corporate loans Mortgage loans Consumer loans

2

Share of loans with recognised impairment as part of the Bank’s loan book remains unchanged on q/q basis

1

29292929

140 135 129120 115

29 25 2115 15

Q1'13 Q2'13 Q3'13 Q4'13 Q1'14

Total Corporate loans Mortgage loans Consumer loans

The declining trend in the costs of risk of corporate loans over the past 12 months has been sustained

2

20.00 19.81 19.84 19.61 19.59

1.53 1.52 1.52 1.54 1.530.04 0.08 0.12 0.15 0.19

Capital adequacy

Own funds (PLN bn)

Total capital requirement (PLN bn)

Consolidated data

2

11.55 11.67 11.64 11.59 11.68

0.64 0.64 0.62 0.63 0.640.52 0.53 0.32 0.33 0.33

1Q'13 1H'13 3Q'13 2013 1Q'14

Tier 3 Tier 2 Tier 1

21.6 21.4 21.5 21.3 21.3

13.6% 13.3% 13.7% 13.6% 13.5%

12.6% 12.3% 12.6% 12.5% 12.4%

10.0%

12.0%

14.0%

16.0%

14

16

18

20

22

1

11.55 11.67 11.64 11.59 11.68

1Q'13 1H'13 3Q'13 2013 1Q'14

Market risk Operating risk Credit risk

The level of capital adequacy of the PKO Bank Polski SA Group as at end of 1Q’14 remained on the safe level, significantly above the statutory limits.

By 1Q’14 report publication date, the European Commission has not accepted the majority of acts implementing Capital Requirements Regulation (CRR), and the European

1

30303030

12.7 12.8 12.6 12.6 12.7

2.0%

4.0%

6.0%

8.0%

10.0%

0

2

4

6

8

10

12

1Q'13 1H'13 3Q'13 2013 1Q'14

PLN

bn

Own funds Total capital requirement CAR Core Tier 1

the EuropeanBanking Authority has extended reporting deadline of first reports for Implementing Technical Standards (ITS) package until 30 June 2014. At thesame time the implementation of Capital Requirements Directive IV (CRD IV) into national law (mainly the so-called national options) has not beencompleted. Accordingly, the Group discloses capital adequacy ratio calculated in accordance with legal standards applicable as at 31 December 2013.

As at the end of 1Q’14, average banking sector CAR stood at 15.6% and its Core Tier 1 at 14.1%

Liquidity Coverage Ratio (LCR) Liquidity Coverage Ratio (LCR) Liquidity Coverage Ratio (LCR) Liquidity Coverage Ratio (LCR)

BaselBaselBaselBasel III and III and III and III and CRD IV/CRRCRD IV/CRRCRD IV/CRRCRD IV/CRRConsolidated data

100% 100% 100% 100% ----

1

LiquidityLiquidityLiquidityLiquidityCapital adequacyCapital adequacyCapital adequacyCapital adequacy

As part of the preparation for the changes resulting from enforcing of the Directive and the Regulation on prudential requirements and supervision (CRD IV / CRR Package), the Bank monitors regulatory changes (in particular, the

129%129%129%129% 132%132%132%132%

100% 100% 100% 100% ----mandatorymandatorymandatorymandatory as of as of as of as of 2018201820182018

Bank monitors regulatory changes (in particular, the technical standards associated with the CRD IV / CRR) on an ongoing basis. Additionally, the Bank has participated in the asset quality reviews (AQR) and the quatitative impact studies (QIS).

The Bank is completing the process of adjstment to the requirements of the CRR/CRD IV Package.

Preliminary estimates show limited impact on Bank’s capital adequacy.

From Bank’s perspective, the most signifcant changes include:• amendments to the definition of own funds

31313131

According to CRD IV / CRR. the minimum LCR levels to be maintained as of 1 January 2014 are:- 60% in 2015- 70% in 2016- 80% in 2017- 100% from 1 January 2018

31.03.201331.03.201331.03.201331.03.2013 31.03.201431.03.201431.03.201431.03.2014

1

• amendments to the definition of own funds• preferential treatment of SME exposures• introduction of capital charge on CVA risk and non-delta

risk of option transactions






Business activity - volumesStandalone management data

Gross loansGross loansGross loansGross loans(1)(1)(1)(1) (PLN bn)(PLN bn)(PLN bn)(PLN bn)Customer deposits Customer deposits Customer deposits Customer deposits (1(1(1(1)))) (PLN bn)(PLN bn)(PLN bn)(PLN bn)

145.1 145.0 145.6 146.7 149.0150.6 153.2 152.4 151.6 153.9

+1.5%+1.5%+1.5%+1.5%

+2.2%+2.2%+2.2%+2.2%

+1.6%+1.6%+1.6%+1.6%+2.7%+2.7%+2.7%+2.7%

70.470.470.470.4

30%

40%

50%

60%

112.7112.7112.7112.7

50%

60%

70%

80%

90%

100%

CorporateCorporateCorporateCorporate

MortgageMortgageMortgageMortgage

Gross loans by business lines Gross loans by business lines Gross loans by business lines Gross loans by business lines (as at 3(as at 3(as at 3(as at 31.03. 1.03. 1.03. 1.03. 2012012012014444))))1)1)1)1)

Sha

re in

S

hare

in

Sha

re in

S

hare

in lo

an

loan

lo

an

loan

po

rtfo

liopo

rtfo

liopo

rtfo

liopo

rtfo

lio

Retail and private bankingRetail and private bankingRetail and private bankingRetail and private banking

Customer depositsCustomer depositsCustomer depositsCustomer deposits by by by by business lines business lines business lines business lines (as at 3(as at 3(as at 3(as at 31111....03.03.03.03.2012012012014444))))1)1)1)1)

Sha

re in

S

hare

in

Sha

re in

S

hare

in d

epo

sits

de

posi

ts

depo

sits

de

posi

ts p

ort

folio

port

folio

port

folio

port

folio

1Q'13 1H'13 3Q'13 2013 1Q'141Q'13 1H'13 3Q'13 2013 1Q'14

33333333

20.120.120.120.1 21.921.921.921.9

41.541.541.541.5

0%

10%

20%

30%

-10% -5% 0% 5% 10% 15%

13.913.913.913.922.422.422.422.4

0%

10%

20%

30%

40%

50%

-5% 0% 5% 10% 15%

(1) Bank’s management data(2) To the SME business line of have been included deposits and loans of housing market clients (previously reported separately)

Retail and private bankingRetail and private bankingRetail and private bankingRetail and private banking

Volume growth rate Volume growth rate Volume growth rate Volume growth rate ((((y/y/y/y/yyyy))))

SMESMESMESME(2)(2)(2)(2)

Sha

re in

S

hare

in

Sha

re in

S

hare

in

CorporateCorporateCorporateCorporate

Sha

re in

S

hare

in

Sha

re in

S

hare

in

Volume growth rate Volume growth rate Volume growth rate Volume growth rate ((((y/y/y/y/yyyy))))

SMESMESMESME(2)(2)(2)(2)

65.0 67.0 67.9 68.8 70.4

107.2107.2107.2107.2 109.6109.6109.6109.6 110.3110.3110.3110.3 110.8110.8110.8110.8 112.4112.4112.4112.4

Gross loans (PLN bn)

1 355 1 507

752752752752871871871871

Gross financial result of retail segment (PLN mn)

Net interest income

Net F&Cincome

Other income

Retail segmentConsolidated data

+15.8%+15.8%+15.8%+15.8%

+11.3%

+2.0%

(1)

+8.3%

+4.9%+4.9%+4.9%+4.9%

+2.3%

+1.4%+1.4%+1.4%+1.4%

5.25.25.25.2

6.16.16.16.1 6.26.26.26.26.66.66.66.6 6.46.46.46.4

New sales of loans (PLN bn)

12,5 12,9 14,0 14,8 13,9123,3123,3123,3123,3 124,6124,6124,6124,6 125,4125,4125,4125,4 125,4125,4125,4125,4 126,6126,6126,6126,6

Deposits (PLN bn)

20.9 20.9 20.8 20.4 20.1

21.3 21.6 21.7 21.6 21.9

31.03.13 30.06.13 30.09.13 31.12.13 31.03.14

Mortgage banking SME Retail and private banking

-903 -909

-280 -336

25 42556 567

1Q'13 1Q'14

Other income



(2)

+2.0%

+0.7%

+19.9%

(1) (1)

+11.2%

+2.7%+2.7%+2.7%+2.7%

-5.7%

+1.0%+1.0%+1.0%+1.0%

+2.7%

-3.5%

+22.4%+22.4%+22.4%+22.4%

+1.1%

-1.3%

----2.7%2.7%2.7%2.7%

34343434

1.5 1.7 2.0 2.3 2.2

1.51.7 1.7 1.5 1.3

2.22.7 2.6 2.7 2.8

5.25.25.25.2

Q1'13 Q2'13 Q3'13 Q4'13 Q1'14

Mortgage banking SME Retail and private banking

110,7 111,7 111,4 110,6 112,7

31.03.13 30.06.13 30.09.13 31.12.13 31.03.14

SME Retail and private banking

Change y/y1) Bank management data

2) To the SMEs business line of have been included deposits and loans of housing market clients (previously reported separately)Change q/q

(2) (2)

+1.8% +1.9%

+27.1%

-13.7%

+52.9%

+4.6%

-13.7%

-4.0%

Retail segment – mortgage loansStandalone data

75% 77% 77% 76%72%

Average LTVAverage LTVAverage LTVAverage LTV

34.8% 34.1% 32.5% 30.8% 29.9%49.4%

Structure of mortgage loans porfolio

PLN FX

66% 68% 68% 68% 69%

Q1'13 Q2'13 Q3'13 Q4'13 Q1'14

Current average LTV of loans portfolio (eop)Average LTV of new sales

136 136 136 137

167 170 166 161 162

Average carrying value of mortgage loan (PLN '000)

180197

190 194 199

Average value of mortgage loan in new slaes(PLN '000)

Banking Banking Banking Banking sectorsectorsectorsector1Q’141Q’141Q’141Q’14

65.2% 65.9% 67.5% 69.2% 70.1%50.6%

31.03.13 30.06.13 30.09.13 31.12.13 31.03.14

35353535

134 136 136 136 137121 123 125 127 129

31.03.13 30.06.13 30.09.13 31.12.13 31.03.14

Total PLN FX

180 190 194 199

Q1'13 Q2'13 Q3'13 Q4'13 Q1'14

43.4 43.7 42.1 40.8 41.5

Gross loans (PLN bn)

144 158

19191919 126126126126

Gross financial result of corporate segment (PLN mn)

Net interest income

Net F&Cincome

Corporate segment Consolidated data

(1)

+568.1%+568.1%+568.1%+568.1%

+9.3%

----4.3%4.3%4.3%4.3% +1.8%+1.8%+1.8%+1.8%

New sales of loans (PLN bn)

31.03.13 30.06.13 30.09.13 31.12.13 31.03.14

21.8

Deposits (PLN bn)

-68 -64

-146

-50

17 17

72 65

1Q'13 1Q'14

Other income



(1) (1)

+2.7%+2.7%+2.7%+2.7%

-65.5%

-6.6%

-10.4%

+5.0%+5.0%+5.0%+5.0% ----8.7%8.7%8.7%8.7% +29.1%+29.1%+29.1%+29.1%

36363636

6.4

3.1

5.9

4.5

5.8

Q1'13 Q2'13 Q3'13 Q4'13 Q1'14

21.820.4

20.3 21.3 22.4

31.03.13 30.06.13 30.09.13 31.12.13 31.03.14

Change y/y Change q/q 1) Bank management data

27.4% 29.6%

Other exposure

Credit risk concentration Credit risk concentration Credit risk concentration Credit risk concentration

Structure of corporateStructure of corporateStructure of corporateStructure of corporate1)1)1)1) loans by industry segment loans by industry segment loans by industry segment loans by industry segment

Consolidated data

1

ReceiveablesReceiveablesReceiveablesReceiveables due due due due fromfromfromfrom corporatecorporatecorporatecorporate1)1)1)1) entitiesentitiesentitiesentities (PLN bn)(PLN bn)(PLN bn)(PLN bn)

----0.8%0.8%0.8%0.8%

15.1% 15.8%

15.1% 15.5%

11.5% 9.9%

9.5%9.2%

1.8%2.1%

Electricity, gas, water, hot water and air to the mechanical systems production and supply

Public administration and national defence obligatory social security

Construction

Wholesale and retail trade, repair of motor vehicles, including motorcycles

Maintenance of real estate

2

64.9 65.5 64.3 62.7 63.4

5.9 5.8 6.6 6.9 6.9

70.870.870.870.8 71.371.371.371.3 70.970.970.970.9 69.669.669.669.6 70.270.270.270.2

+16.8%

-2.4%

37373737

19.5% 18.0%

31.03.201331.03.201331.03.201331.03.2013 31.03.201431.03.201431.03.201431.03.2014

Industrial processing

(1) Gross loans of non-financial and state budget entities

31.03.13 30.06.13 30.09.13 31.12.13 31.03.14

Gross loans Corparate and municipal bonds

Change y/y

Exposure vis-a-vis the Construction sector being 4.3% of gross loans at the end of 1Q’14 represented a decline of 0.8 pp y/y while its share in corporate loans declined by 1.6 pp y/y.

The highly diversified structure of the loan book points to low sector exposure concentration, with the Industrial Processing exposures being the highestrepresented in the loan portfolio and standing at 18.0% at the end of 1Q’14. The greatest change occurred in Other Exposures, which increased by 2.2 pp. y/y.

2

1






1 1861 1861 1861 186

777777777777854854854854 877877877877

709709709709

2010 2011 2012 2013 1Q'14

ActivityActivityActivityActivity inininin UkraineUkraineUkraineUkraine –––– KredobankKredobankKredobankKredobank

Net Net Net Net loansloansloansloans (PLN mn)(PLN mn)(PLN mn)(PLN mn)

22.9% 22.0% 16.1% 19.8% 12.0%

105.1%

68.2% 77.7% 84.2% 90.8%

2010 2011 2012 2013 1Q'14

AdequacyAdequacyAdequacyAdequacy and and and and liquidityliquidityliquidityliquidity

2010 2011 2012 2013 1Q'14

1 1291 1291 1291 129 1 1381 1381 1381 138 1 0991 0991 0991 099 1 0411 0411 0411 041

781781781781

2010 2011 2012 2013 1Q'14

DepositsDepositsDepositsDeposits (PLN mn)(PLN mn)(PLN mn)(PLN mn)

Financial Financial Financial Financial resultsresultsresultsresults (PLN mn)(PLN mn)(PLN mn)(PLN mn)

Capital adequacy N2 by UAS (min 10%)Net loans/deposits

QualityQualityQualityQuality of of of of loanloanloanloan portfolioportfolioportfolioportfolio

PKO Bank Polski PKO Bank Polski PKO Bank Polski PKO Bank Polski exposureexposureexposureexposure (PLN mn)(PLN mn)(PLN mn)(PLN mn)

84.4%

52.6%36.5%

31.8% 32.9%

31.8%23.7% 24.3%

38.7% 35.9%

2010 2011 2012 2013 1Q'14

Share of loans with recognized impairment

Coverage of loans with recognized impairment by impairment allowance

39393939

114114114114

88888888

115115115115 119119119119

21212121

-5-17 -11 -3 -3

2010 2011 2012 2013 1Q'14

Result on business activity Net operating result

PKO Bank Polski PKO Bank Polski PKO Bank Polski PKO Bank Polski exposureexposureexposureexposure (PLN mn)(PLN mn)(PLN mn)(PLN mn)

512512512512 512512512512

362362362362

254254254254 272272272272

105 118 109 108 107

2010 2011 2012 2013 1Q'14 Capital exposure Subordinated loan

Basic operational dataStandalone data

y/y q/q

ChangeItem

(eop)3Q'131Q'13 1H'13 2013 1Q'14

Number of current accounts ('000) 6 245 6 254 6 283 6 318 6 333 +1.4% +0.2%

Number of banking cards ('000) 7 120 7 225 7 090 7 080 7 155 +0.5% +1.1%

of which: credit cards 938 919 899 893 836 -10.9% -6.4%

Number of branches: 1 199 1 177 1 181 1 186 1 186 -1.1% 0.0%

- retail 1 135 1 138 1 142 1 147 1 147 +1.1% 0.0%

- corporate 64 39 39 39 39 -39.1% 0.0%

Number of agencies 1 202 1 149 1 115 1 074 1 069 -11.1% -0.5%

40404040

Number of ATMs 2 911 2 945 2 960 2 992 3 028 +4.0% +1.2%

Number of active IKO applications ('000) 11 39 57 101 136 12x +34.4%

Consolidated data

� Profit and loss account (PLN '000)� Profit and loss account (PLN '000)� Profit and loss account (PLN '000)� Profit and loss account (PLN '000) Q1'13Q1'13Q1'13Q1'13restatedrestatedrestatedrestated

Q2'13Q2'13Q2'13Q2'13restatedrestatedrestatedrestated



Q1'14Q1'14Q1'14Q1'14Q1'14/Q1'14/Q1'14/Q1'14/Q1'13Q1'13Q1'13Q1'13

Q1'14/Q1'14/Q1'14/Q1'14/Q4'13Q4'13Q4'13Q4'13

Net interest income 1 752 651 1 627 850 1 626 932 1 714 529 1 739 828 -0.7% +1.5%

Net fee and commission income 717 540 716 876 756 544 814 792 705 415 -1.7% -13.4%

**** **** **** ****

Profit and loss of the PKO Bank Polski Group, quarterly

Other income 57 785 133 215 141 341 646 811 102 932 +78.1% -84.1%

Dividend income - 5 295 471 - - x x

Net income from financial instruments designated at fair value (155) 3 453 31 059 19 952 13 223 x -33.7%

Gains less losses from investment securities 28 324 33 029 3 425 2 706 6 639 -76.6% +145.3%

Net foreign exchange gains (12 225) 87 168 67 445 99 460 48 639 x -51.1%

Net other operating income and expense 41 841 4 270 38 941 524 693 34 431 -17.7% -93.4%

Total income itemsTotal income itemsTotal income itemsTotal income items 2 527 976 2 527 976 2 527 976 2 527 976 2 477 941 2 477 941 2 477 941 2 477 941 2 524 817 2 524 817 2 524 817 2 524 817 3 176 132 3 176 132 3 176 132 3 176 132 2 548 175 2 548 175 2 548 175 2 548 175 +0.8%+0.8%+0.8%+0.8% -19.8%-19.8%-19.8%-19.8%

Net impairment allowance and write-offs (447 983) (418 936) (487 763) (683 199) (413 458) -7.7% -39.5%

Administrative expenses (1 119 727) (1 105 767) (1 115 603) (1 281 446) (1 125 760) +0.5% -12.1%

Share in net profit (losses) of associates and jointly controlled entities (2 337) (12 316) 11 225 1 450 (5 632) +141.0% x

41414141

Share in net profit (losses) of associates and jointly controlled entities (2 337) (12 316) 11 225 1 450 (5 632) +141.0% x

Profit before income tax Profit before income tax Profit before income tax Profit before income tax 957 929 957 929 957 929 957 929 940 922 940 922 940 922 940 922 932 676 932 676 932 676 932 676 1 212 937 1 212 937 1 212 937 1 212 937 1 003 325 1 003 325 1 003 325 1 003 325 +4.7%+4.7%+4.7%+4.7% -17.3%-17.3%-17.3%-17.3%

Income tax expense (171 684) (188 262) (180 494) (275 831) (204 344) +19.0% -25.9%

Net profit attributable to non-controlling shareholders (177) (97) (114) (1 212) (3 593) 20x +196.5%

Net profit attributable to the parent companyNet profit attributable to the parent companyNet profit attributable to the parent companyNet profit attributable to the parent company 786 422 786 422 786 422 786 422 752 757 752 757 752 757 752 757 752 296 752 296 752 296 752 296 938 318 938 318 938 318 938 318 802 574 802 574 802 574 802 574 +2.1%+2.1%+2.1%+2.1% -14.5%-14.5%-14.5%-14.5%


Consolidated statement of financial position of the PKO Bank Polski Group

Consolidated data

AssetsAssetsAssetsAssets (PLN '000) (PLN '000) (PLN '000) (PLN '000) 31.03.1331.03.1331.03.1331.03.13restatedrestatedrestatedrestated

30.06.1330.06.1330.06.1330.06.13restatedrestatedrestatedrestated


31.12.1331.12.1331.12.1331.12.13 31.03.1431.03.1431.03.1431.03.14ChangeChangeChangeChange

y/y y/y y/y y/yChangeChangeChangeChange

q/qq/qq/qq/q

Cash and balances with the Central Bank 7 759 248 5 658 046 7 602 630 7 246 120 9 556 020 +23.2% +31.9%

Amounts due from other banks 1 729 557 3 243 295 5 208 080 1 893 441 5 000 037 +189.1% +164.1%

Trading assets 2 627 211 3 376 991 2 024 575 479 881 1 489 421 -43.3% +210.4%

Derivative financial instruments 3 463 573 3 324 374 2 814 162 3 000 860 2 747 203 -20.7% -8.5%

**** **** ****


Financial assets designated at fair value through P&L 14 114 362 12 661 245 12 503 572 15 204 756 9 421 323 -33.3% -38.0%

Loans and advances to customers 147 089 110 148 684 443 149 611 334 149 623 262 149 660 865 +1.7% +0.0%

Investment securities available for sale and securities held to maturity 12 797 794 13 769 975 14 158 388 14 111 083 17 005 788 +32.9% +20.5%

Tangible fixed assets 2 645 938 2 662 292 2 616 003 2 611 233 2 696 413 +1.9% +3.3%

Other assets 4 566 331 4 484 811 4 712 613 5 060 474 5 574 920 +22.1% +10.2%

TOTAL ASSETSTOTAL ASSETSTOTAL ASSETSTOTAL ASSETS 196 793 124 196 793 124 196 793 124 196 793 124 197 865 472 197 865 472 197 865 472 197 865 472 201 251 357 201 251 357 201 251 357 201 251 357 199 231 110 199 231 110 199 231 110 199 231 110 203 151 990 203 151 990 203 151 990 203 151 990 +3.2%+3.2%+3.2%+3.2% +2.0%+2.0%+2.0%+2.0%

Liabilities and eqiutyLiabilities and eqiutyLiabilities and eqiutyLiabilities and eqiuty (PLN '000) (PLN '000) (PLN '000) (PLN '000)31.03.1331.03.1331.03.1331.03.13

restatedrestatedrestatedrestated



31.12.1331.12.1331.12.1331.12.13 31.03.1431.03.1431.03.1431.03.14ChangeChangeChangeChange

y/y y/y y/y y/yChangeChangeChangeChange

q/qq/qq/qq/q

Amounts due to the central bank 2 909 3 858 4 149 4 065 3 910 +34.4% -3.8%

Amounts due to banks 4 056 803 3 876 976 5 728 855 3 747 337 4 370 969 +7.7% +16.6%

**** **** ****

42424242


Amounts due to customers 148 446 145 149 242 633 150 857 210 151 904 181 152 672 685 +2.8% +0.5%

Debt securities in issue 10 924 388 10 939 240 10 658 002 10 546 446 12 693 982 +16.2% +20.4%

Subordinated liabilities 1 604 076 1 624 355 1 603 338 1 620 857 1 603 540 -0.0% -1.1%

Other liabilities 3 025 332 5 094 431 4 932 782 2 925 688 2 787 310 -7.9% -4.7%

Total equity 25 156 122 23 399 306 24 183 137 25 154 325 25 938 906 +3.1% +3.1%

TOTAL EQUITY AND LIABILITIESTOTAL EQUITY AND LIABILITIESTOTAL EQUITY AND LIABILITIESTOTAL EQUITY AND LIABILITIES 196 793 124 196 793 124 196 793 124 196 793 124 197 865 472 197 865 472 197 865 472 197 865 472 201 251 357 201 251 357 201 251 357 201 251 357 199 231 110 199 231 110 199 231 110 199 231 110 203 151 990 203 151 990 203 151 990 203 151 990 +3.2%+3.2%+3.2%+3.2% +2.0%+2.0%+2.0%+2.0%


Standalone data

� Profit and loss account (PLN '000)� Profit and loss account (PLN '000)� Profit and loss account (PLN '000)� Profit and loss account (PLN '000) Q1'13Q1'13Q1'13Q1'13restatedrestatedrestatedrestated




Q1'14Q1'14Q1'14Q1'14Q4'13/Q4'13/Q4'13/Q4'13/Q4'12Q4'12Q4'12Q4'12

Q4'13/Q4'13/Q4'13/Q4'13/Q3'13Q3'13Q3'13Q3'13

Net interest income 1 723 785 1 596 825 1 594 507 1 665 333 1 703 601 -1.2% +2.3%

Net fees and commission income 656 059 618 487 660 956 719 980 658 696 +0.4% -8.5%

**** **** **** ****

Profit and loss of the PKO Bank Polski, quarterly

Other income 23 101 198 587 113 863 696 695 127 719 +452.9% -81.7%

Dividend income - 78 567 471 17 011 - x x

Net income from financial instruments designated at fair value

504 3 347 30 169 20 369 13 023 26x -36.1%

Gains less losses from investment securities

27 568 33 205 3 423 2 713 5 854 -78.8% +115.8%

Net foreign exchange gains (13 608) 86 843 65 682 98 721 105 276 x +6.6%

Net other operating income and expense 8 637 (3 375) 14 118 557 881 3 566 -58.7% -99.4%

Total income itemsTotal income itemsTotal income itemsTotal income items 2 402 945 2 402 945 2 402 945 2 402 945 2 413 899 2 413 899 2 413 899 2 413 899 2 369 326 2 369 326 2 369 326 2 369 326 3 082 008 3 082 008 3 082 008 3 082 008 2 490 016 2 490 016 2 490 016 2 490 016 +3.6%+3.6%+3.6%+3.6% -19.2%-19.2%-19.2%-19.2%

Net impairment allowances (430 046) (453 636) (482 023) (721 862) (414 695) -3.6% -42.6%

43434343

Net impairment allowances (430 046) (453 636) (482 023) (721 862) (414 695) -3.6% -42.6%

General administrative expenses (1 022 736) (1 008 708) (1 012 472) (1 176 850) (1 031 192) +0.8% -12.4%

Profit before income tax Profit before income tax Profit before income tax Profit before income tax 950 163 950 163 950 163 950 163 951 555 951 555 951 555 951 555 874 831 874 831 874 831 874 831 1 183 296 1 183 296 1 183 296 1 183 296 1 044 129 1 044 129 1 044 129 1 044 129 +9.9%+9.9%+9.9%+9.9% -11.8%-11.8%-11.8%-11.8%

Income tax expense (166 553) (181 698) (171 981) (205 851) (197 414) +18.5% -4.1%

Net profitNet profitNet profitNet profit 783 610 783 610 783 610 783 610 769 857 769 857 769 857 769 857 702 850 702 850 702 850 702 850 977 445 977 445 977 445 977 445 846 715 846 715 846 715 846 715 +8.1%+8.1%+8.1%+8.1% -13.4%-13.4%-13.4%-13.4%


Basic information on sharesBasic information on sharesBasic information on sharesBasic information on shares

• Listed:Listed:Listed:Listed: Warsaw Stock Exchange since 10.11.2004

• Indices: Indices: Indices: Indices: WIG. WIG20. WIG30. WIG Banki

• ISIN: ISIN: ISIN: ISIN: PLPKO0000016

• Bloomberg:Bloomberg:Bloomberg:Bloomberg: PKO PW

Rating:Rating:Rating:Rating:Agency:Agency:Agency:Agency:

LongLongLongLong----termtermtermterm ShortShortShortShort----termtermtermtermFinancialFinancialFinancialFinancialstrenghstrenghstrenghstrengh

SupportSupportSupportSupport

Moody’sA2 with negative

outlook P-1

C- with negative outlook

A- with negative A-2 with

RatingRatingRatingRating

Stock ratings and dividend policy

ShareholderShareholderShareholderShareholder structurestructurestructurestructureNumber of shares: 1 250 mnNumber of shares: 1 250 mnNumber of shares: 1 250 mnNumber of shares: 1 250 mn

• Reuters:Reuters:Reuters:Reuters: PKOB WAStandard&Poor’s

A- with negative outlook

A-2 with stable

outlook

Fitch(unsolicited)

2

DividendDividendDividendDividendPayment from the net

profit of the yearDPS (PLN)

Dividend yield (Div. Day)

Payout ratio

2013** 0.75 x 31.65%

2012 1.80 4.9% 61.12%

2011 1.27 3.9% 40.15%

2010 1.98 5.5% 74.75%

2009 1.90 4.2% 97.65%

2008 1.00 2.9% 34.71%

State State State State Treasury Treasury Treasury Treasury 31 .39%31 .39%31 .39%31 .39%

Av iva Av iva Av iva Av iva OFE*OFE*OFE*OFE*6 .72%6 .72%6 .72%6 .72%

OthersOthersOthersOthers56 .72%56 .72%56 .72%56 .72%

44444444

2008 1.00 2.9% 34.71%

2007 1.09 2.2% 40.07%

2006 0.98 1.7% 47.87%

2005 0.80 2.1% 47.71%

2004 1.00 3.6% 66.18%

*) 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 24.07.12) and Aviva OFE (as at 29.01.13)

• 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’s Capital Group as determined on the basis of the adopted criteria

• an optimization of the capital structure, taking into account the return on capital and its cost, capital needs for development. while ensuring an appropriate level of capital adequacy ratios• to recommend in the future the payment of dividend in an amount ensuring that the capital adequacy ratios are maintained at the following levels:

− capital adequacy ratio above 12 per cent while maintaining the necessary capital buffer− common equity Tier 1 ratio above 9 per cent while maintaining the necessary capital buffer

Dividend policy adopted on 4Dividend policy adopted on 4Dividend policy adopted on 4Dividend policy adopted on 4thththth April 2012 assumes:April 2012 assumes:April 2012 assumes:April 2012 assumes:

ING OFE*ING OFE*ING OFE*ING OFE*5 .17%5 .17%5 .17%5 .17%

**) According to the recommendation of the of PKO Bank Polski Management Board dated 29.04.2014.

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 itsclients 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 solicitationof an offer to purchase any securities or recommendation to conclude any transaction. in particular with respect to securities of PKO BP S.A. Theinformation contained in this Presentation is derived from publicly available sources which Bank believes are reliable. but PKO BP SA does not make anyrepresentation as to its accuracy or completeness. PKO BP SA shall not be liable for the consequences of any decision made based on information includedin this Presentation.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’sdisclosure of the data included in this Presentation is not a breach of law for listed companies. in particular for companies listed on the Warsaw StockExchange. The information provided herein was included in current or periodic reports published by PKO BP SA or is additional information that is notrequired 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. itsrepresentatives. 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 thisPresentation.

PKO BP SA does not undertake to publish any updates. modifications or revisions of the information. data or statements contained herein should there beany 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 reportingobligations 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 banksand PKO BP SA. Unless attributed exclusively to another source. such market information has been calculated based on data provided by third partysources identified herein and includes estimates. assessments. adjustments and judgments that are based on PKO BP SA’s experience and familiarity with

45454545

sources identified herein and includes estimates. assessments. adjustments and judgments that are based on PKO BP SA’s experience and familiarity withthe sector in which PKO BP SA operates. Because such market information has been prepared in part based upon estimates. assessments. adjustments andjudgments and not verified by an independent third party. such market information is. unless otherwise attributed to a third party source. to a certaindegree subjective. While it is believed that such estimates. assessments. adjustments and judgments are reasonable and that the market informationprepared is appropriately reflective of the sector and the markets in which PKO BP SA operates. there is no assurance that such estimates. assessmentsand judgments are the most appropriate for making determinations relating to market information or that market information prepared by other sourceswill 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.

Contact:Contact:Contact:Contact:PKO Bank Polski SA Investor Relations Office PKO Bank Polski SA Investor Relations Office PKO Bank Polski SA Investor Relations Office PKO Bank Polski SA Investor Relations Office Lidia Wilk – DirectorPulawska 1502-515 WarsawPolandTel: +48 22 521 91 82Fax: +48 22 521 91 83E-mail: [email protected]: [email protected]: [email protected]

PKO Bank Polski websitePKO Bank Polski websitePKO Bank Polski websitePKO Bank Polski website: www.pkobp.pl

Investor’sInvestor’sInvestor’sInvestor’s calendarcalendarcalendarcalendar::::

1st September 2014 Publication of the Semi-Annual Report 1H 2014

6th November 2014 Publication of the Quarterly Report 3Q 2014

12th March 2015 Publication of the Annual Report 2014

Documents

PKO BP presentation 1Q 2014