CEE AND POLAND MARKETS DIVISIONS
Erich Hampel
Andrea Moneta
2
AGENDA
Vision, strategy and financial targets
UniCredit’s strategic positioning in CEE
CEE macroeconomic scenario
Scenario, positioning and targets
3y plan strategic pillars
Summing up
3
THE CEE REGION IS A LARGE MARKET WHERE UNICREDIT IS WELL POSITIONED …
Real GDP Growth (%)
Year 2005 data
Population, mln
GDP, Euro bn
Per Capita GDP, Euro
EU 15385(2)
10,264
26,655
CEE 16(1)
386
4,324
1,668
Inflation (%) 2.1 4.6(3)
Source: UniCredit-NE Research Network(1) CEE 16 aggregate includes PL, HU, CZ, SK, SI, EE, LV,LIT,
HR,BG,RO,TK,RU,Serbia,BiH and UA(2) Population for UK as of 2004
(3) Excluding Turkey and Russia(4) The aggregate refers to CEE16 +
Macedonia
2006-08F (avg)1.7
5.2
2002-05 (avg)1.3
5.7
CEE(4)
Eurozone Note: Data 2005. Countries are ranked in terms of net profit before UniCredit’s minorities generated by UniCredit CEE banks. Turkey figures are pro-quota and pro-formed.
Countries
PolandCroatiaTurkeyRussiaHungaryCzech RepublicBulgariaRomaniaSlovakiaBiHSloveniaS&MUkraineEstoniaLatviaLithuania
49.0%
10.9%
9.3%
6.6%
5.9%
5.4%
4.9%
3.9%
2.5%
0.8%
0.8%
0.5%
0.5%
0.3%
14,4%
1,9%
17,4%
36,9%
5,3%
5,9%
1,3%
4,8%
2,2%
0,5%
1,6%
1,3%
3,9%
0,6%
0,8%
1,2%
% Net Profit
UniCredit CEE Banks
Weight on GDP of CEE
%
Real. GDP growth
(avg 06-08)
4.3%
4.0%
5.5%
5.6%
4.0%
4.9%
5.7%
5.3%
6.1%
5.8%
3.9%
5.2%
3.9%
8.8%
7.7%
6.3%
4
… CHARACTERIZED BY STRONG ECONOMIC GROWTH AND IMPROVING RISK LEVEL …
Source: UniCredit - NE Research Network
Real GDP % growth in CEE
(Index 2000 =100)
75
135
195
2000 2001 2002 2003 2004 2005 2006f 2007f 2008f
CE (PL,HU,SK,CZ)SEE(SI,HR,RO,BG,BiH,Serbia,MK)CIS (RU,UA)BalticsTKEurozone
Baltics7.3%
CIS5.4%
SEE 4.9% TK 5.5%
CE4.5%
Eurozone1.7%
CAGR 05-08
Rating Upgrade Rating DowngradeNote: *+ means under review with positive implication
Current ratings and revisions in the last 2 years
Countries
PolandHungaryCzech RepublicSlovakiaSloveniaEstoniaLatviaLithuaniaBulgariaRomaniaCroatiaTurkeyMacedoniaBosnia-H.Serbia & Mon.UkraineRussia
A2/Stable
A1/Negative
A1/Positive
A2/ *+
Aa3/*+
A1/Positive
A2/Positive
A3/ *+
Baa3/Stable
Ba1/*+
Baa3/Stable
Ba3/Stable
-
B2/Stable
-
B1/Stable
Baa2/Stable
BBB+/Stable
BBB+/Negative
A-/Positive
A/Stable
AA/Stable
A/Positive
A-/Stable
A/Stable
BBB/Positive
BBB-/Stable
BBB/Stable
BB-/Stable
BB+/Stable
-
BB-/Positive
BB-/Stable
BBB/Stable
Moody’s S&P’s
5
BANKING PENETRATION IN 2005
... AND BY FURTHER BANKING GROWTH POTENTIAL ACROSS COUNTRIES, WITH RUSSIA AND SEE LEADING THE GROWTH PATTERN
(Loans+Deposits)/GDP
Russia33% p.a.
Turkey9% p.a.
SEE13% p.a.
CE7% p.a.
CAGR 05-08
Tota
l CEE
dep
.’ vo
lum
es g
row
th(1
)
(200
0 =1
00, i
n E
uro
term
s)
Sources: UniCredit-NE Research Network based on data from local Central Banks(1) Total loans/deposits include general govt, non-financial corporations, households and when available NPISHs and Non-MFIs
Russia34% p.a.
Turkey18% p.a.
SEE 16% p.a.
CE13% p.a.
CAGR 05-08
Tota
l CEE
loan
s’ v
olum
es g
row
th(1
)
(200
0 =1
00, i
n E
uro
term
s)
Eurozone
208%
71%
CEE
0
500
1,000
1,500
2000 2001 2002 2003 2004 2005 2006f 2007f 2008f
Central Europe (Poland,Czech R.,Hungary,Slovakia)SEE (Croatia,Slovenia,Serbia,Bosnia,Romania,Bulgaria)
RussiaTurkey
0
500
1.000
1.500
2000 2001 2002 2003 2004 2005 2006f 2007f 2008f
Central Europe (Poland,Czech R.,Hungary,Slovakia)SEE (Croatia,Slovenia,Serbia,Bosnia,Romania,Bulgaria)RussiaTurkey
6
Volumes
Spreads
Retail vs. corporate mix
Fees & Comm. vs. interest income mix
Favourable macroeconomic outlook
Mix retail vs. corporate loans
High loan volume growth
Source: Central Banks and UniCredit-CEE Research Network(1) CAGR of regional net profit, with countries weighted according to relevance for UniCredit net profit in 2006. Including Poland,
Turkey, Croatia, Russia, Bulgaria, Czech R., Hungary, Romania and Slovakia
AS A RESULT, OVERALL EXPECTED NET PROFITS CAGR 05-08 IS 15% IN THE REGION (12% IN UNICREDIT’S(1) MARKETS)
Euro bn
CAGR+15.2%
PROFIT BEFORE TAX
2005
21.0
32.0
2008
Revenue Drivers
Impact on revenues
Credit Risk Drivers
Impact on cost of risk
7
AGENDA
Vision, strategy and financial targets
UniCredit’s strategic positioning in CEE
CEE macroeconomic scenario
Scenario, positioning and targets
3y plan strategic pillars
Summing up
8(1) Defined as countries to be integrated in the new CEE Division of BA-CA, including the transfer of assets
UNICREDIT HAS A UNIQUE FRANCHISE IN THE CEE REGION WITH A PRESENCE IN 17 COUNTRIES …
~ 84 Euro bnTotal Assets
~ 3,000Branches
~ 64,700 Employees
~ 17 mlnCustomers
~ 400 mln Inhabitants
CEE region(4)
Czech. Rep.No. 4 – 8.4
SlovakiaNo. 5 – 3.4
SloveniaNo. 5 – 1.9
Croatia(2)
No. 1 – 9.7
BosniaNo. 1 – 1.4
SerbiaNo. 5 – 0.5
BulgariaNo. 1 – 3.4
Romania No. 3 – 3.3
HungaryNo. 7 – 4.1
Turkey(3)
No. 5 – 27.5
RussiaNo. 8 – 4.7
UkraineNo. 13 – 0.3
EstoniaNo. 6 – 0.1
LatviaNo. 10 – 0.4
LithuaniaNo. 8 – 0.4
AzerbaijanNo. 9 – 0.05
PolandNo. 1 - 31.1
Integration countries(1)
Merger countries
Ranking on 2005 Total Assets (TA) – TA in Euro bn
(2) Excluding Splitska Banka (3) 100% of total assets (4) CEE Region total considering Turkey pro-quota for total assets and at 100% for other items
9
Proforma 2005, as of perimeter May 2006(i)
(1) Excluding Splitska Banka; including pro-forma NBB, Tiriac and Hebros, and with Turkey at pro-quota; (2) Including Azerbaijan; (3) Including proforma Erste Serbia; (4) Including proforma BCR; (5) Including proforma Impexbank; Bank Aval fully consolidated since 1st Oct 2005; (6) Including proforma Splitska Banka; (7) Including proforma KMB and Intesa Beograd; (8) Including proforma Ukrsotsbank and UPI Banka (as of Sep ’05); (9) Revenues for KMB and UPI Banka n.a.; (10) Including proforma Niska Banka and Zepter Banka; profits are before tax; P&L of OTP Hrvatska doesn’t include Q1 2005; (11) Excluding Kosovo
Consolidated Assets (Euro bn)(i)
Total Revenues (Euro mln)
Net Profit before min. int. (Euro mln)(ii)
Countries of presence(iii)
… AND IS THE LEADING PLAYER AMONG INTERNATIONAL COMPETITORS ...
Source: Unicredit-NE Research Network; numbers converted using avg and eop ex. rates from UIC for P&L and BL figures, respectively. Data for UniCredit may differ from the applied methodology to be in line with 3YP figures
(i) 100% of total assets, revenues and profit after tax (before minorities) for controlled Companies (stake > 50%) and share owned for non controlled companies; proforma results include also banks acquired during 2005 and 2006;
(iii) After tax, before minority interests(iv) Including direct and indirect presence in 21 CEE countries, excluding representative offices
530
608
556
301
490
460
1,405(1)
Erste 48.7(4) 2,406(4) 711(4)
RZB
KBC
42.3(5) 2,026(5) 481(5)
SocGen
Intesa
OTP 19.1(10)
22.1(8)
30.1(6)
1,561(10)
1,212(8)(9)
1,551(6)
609(10)
326(8)
531(6)
9(8)
10(6)
6(4)
6(10)
(3) (3)(3)
(7) (7) (7)
19.0
39.4
42.7
20.1
26.9
40.7
84.5(1) 4,196(1)
1,898
1,435
1,083
1,928
1,545
1,744
5
5
5
7
9
15(11)
17UniCredit (2)1,405(1)
10
0
2
46
8
10
12
0 5 10 15 20
Number of countries of active presence(1)
Num
ber o
f Top
5
Source: UniCredit-NE Research Network(1) Including both direct and indirect presence
Strategic positioning: country of operation and size in each market(size = total assets controlled in the region)
…WITH THE BEST POSITIONING IN THE MARKET
11
AGENDA
Vision, strategy and financial targets
UniCredit’s strategic positioning in CEE
CEE macroeconomic scenario
Scenario, positioning and targets
3y plan strategic pillars
Summing up
12
OUR VISION
■ Be a key pillar of UniCredit Group’s value and identity developing the best banking franchise in Central and Eastern Europe
■ Deliver high and sustainable profitability and growth through:
a strong local coverage (“be close to our customers”) …
… formed by a passionate pool of talents and employees with a customer oriented culture and approach (“to exceed their expectations and being the bank of choice”) …
… strengthened by being part of a world-class banking group (“to provide them with the best services and value for money”)
13
THE STRATEGY IS DIFFERENTIATED BY MARKET POTENTIAL AND UNICREDIT POSITIONING …
(1) Turkey merger expected to be completed by end 2006(2) For Ukraine and BiH Revenues CAGR is 2004-2008(3) Sum do not square to 100% since few countries of the Region are not included in the chart
PositioningMarket share 2005 in TA
(%)
Market Growth PotentialRevenue Pool 2005-2008 (%)
Size 2005 UCI Net Profit Contribution
15%
30%
10% 30%
Poland
Turkey(1)
Croatia
5% 15%
Czech Rep.
Bulgaria
Hungary
Russia
Romania
Slovakia
BiH(2)
Ukraine(2)
Slovenia
Serbia
Merger countries
31%
% Country revenues as % of the total Region revenue pool 2008(3)
30%
11%
2%
5%
5%
3%
2%4%1%
2%
2%
1%
14
… AND BASED ON 3 STRATEGIC PILLARS OF THE 3YP …
■ Cross border initiatives
■ Successfully completing mergers in 6 countries
■ Selective growth in specific countries
15
… WHICH TRANSLATES INTO REMARKABLE OPERATIONAL AND FINANCIAL RESULTS(1)
2005 CAGR 05-08
4,196 ~11%Total revenues, mln
FTE ~54,800
20082005
Branches 3,004
~53,000
3,180(3)
AUM (mutual funds), mln 9,285 ~25-30%
Avg. RWA, bn
FTE w/o organic growth ~54,800
(1) All Turkey figures are pro-quota except for branches
~50.6 ~17%
Cost of risk, bp
Cost/Income 55.4% ~49%
~49,800
EVA, mln ~480 ~870
(3) Excluding 200 outlets in Poland
62(2) ~68
(2) 67 bp if adjusted for positive one-off write-back in Zaba
16
AGENDA
Scenario, positioning and targets
3y plan strategic pillars
Summing up
Merger in Poland
Successfully completing the mergers
Cross border initiatives
Selective growth: the cases of Turkey and Russia
17
CREATING VALUE BY CROSS BORDER INITIATIVES TO ENHANCE QUALITY, IMPROVE CUSTOMER SATISFACTION AND BOOST PERFORMANCE
■ Achieve synergies and improve quality leveraging on GBS IT applications and competence centers
■ Set homogeneous segments of customers and business models across the Region
■ Introduce common MIS and CRM approaches and tools
■ Export best practices across the Region (customer acquisition development and retention, sales effectiveness, product innovation and product catalogue streamlining)
■ Market the corporate franchise in the Region to:
➼ leverage both Group’s customers (A, DE, ITA in cooperation with C&SME) and corporate investors where the Group is not present
➼ offer dedicated value propositions and services for intra-Region import/export (e.g. payments, factoring)
■ Leverage the strengths of the Group in Asset Management and Investment Banking
18
AGENDA
Scenario, positioning and targets
3y plan strategic pillars
Summing up
Merger in Poland
Successfully completing the mergers
Cross border initiatives
Selective growth: the cases of Turkey and Russia
19
ALL MERGERS WELL ON TRACK …Po
land
Assets: Euro 31,061 mln■ Ranking(1): #1■ Mkt Sh.(1) : 21.4%N. Branches: 1,290
Cze
ch R
ep.
11%
5%
Rom
ania
■ Details follow
■ Strengthening market share through organic growth
(1) On Total Asset at the end of 2005
Assets: Euro 8,375 mln■ Ranking(1): #4■ Mkt Sh.(1) : 7.0%N. Branches: 77
Assets: Euro 3,318 mln■ Ranking(1): #3■ Mkt Sh.(1) : 5.8%N. Branches: 138
■ Strengthening market share through organic growth
3%
2005 2006 2007 2008 Strategic guidelines
% % weight on total Region revenue pool in 2008 Date of Merger
(Under evaluation)
(Under evaluation)
20
… AND EXPECTED TO BE COMPLETED BY MID 2007 …Sl
ovak
iaB
ulga
ria Maintain market share and improve efficiency
2%
% % weight on total Region revenue pool in 2008 Date of Merger
Bos
nia
■ Maintain market share and improve efficiency
Assets: Euro 1,515 mln■ Ranking(1): #1■ Mkt Sh.(1) : 24.9%N. Branches: 155
Assets: Euro 3,425 mln■ Ranking(1): #5■ Mkt Sh.(1) : 9.2%N. Branches: 93
Assets: Euro 3,423 mln■ Ranking(1): #1■ Mkt Sh.(1) : 20.6%N. Branches: 326
■ Strengthening market share through organic growth
2%
1%
Strategic guidelines2005 2006 2007 2008
(1) On Total Asset at the end of 2005
(Under evaluation)
21
■ Total Restructuring Charges 2006-08 are Euro 104 mln
■ Cost synergies in 2008 amount to Euro 108 mln (of which Euro 60 mln in Poland), additional synergies expected from Poland in 2009
(1) Turkey excluded since the merger will be completed before end 2006(2) Excluding cost of organic growth in Romania(3) Average inflation calculated based on average weight on GDP(4) At current exchange rates
Revenue and Expense Growth in Merger Countries (in Euro mln)
Restructuring Charges and Cost Synergies in Merger Countries (in Euro mln)
■ Strict cost control in 6 merger countries (PL, CZ, SK, BG, RO, B&H)(1), lead to a CAGR(2) 05-08 of 2.1% vs an average inflation(3) of 3.3% in the same period and with average market cost growth of +11%
■ Revenue growth 3.9 times higher than expense growth (CAGR 05-08 of 8.1%)
CAGR8.1% p.a.(4)
CAGR2.1% p.a.4
… CREATING VALUE THROUGH COST SYNERGIES WHILE KEEPING REVENUE GROWTH
1,6221,6351,5321,461
3,4913,214
2,8552,655
1,000
1,500
2,000
2,500
3,000
3,500
4,000
2005 2006 2007 2008
Operating Expenses Total Revenues
5
41
58
108
69
13
0
20
40
60
80
100
120
2006 2007 2008
Restruct. Charges (p.a.) Synergies (p.a.)
22
AGENDA
Scenario, positioning and targets
3y plan strategic pillars
Summing up
Merger in Poland
Successfully completing the mergers
Cross border initiatives
Selective growth: the cases of Turkey and Russia
23
Eurozone(1) Poland(2) Eurozone Poland
Source: Unicredit-CEE research network and ECB
97
545
66
208
(1) As of 2004, including branches of Cis from EEA and third countries(2) As of Sep 2005 excluding cooperative banks and sub-branches(3) Aged 15+
THE POLISH BANKING SECTOR IS AMONG THE MOST ATTRACTIVE IN CEE IN TERMS OF SIZE AND UNICREDIT ENJOYS THE BEST POSITIONING
Branches per mln inhabitants (2005)
(Loans+Deposits)/ GDP (2005)
Strengths Strengths
■ Sales effectiveness and focus on AUM
■ Efficiency■ Risk management
■ Acquisition capabilities■ Fee based services for
corporate■ MIS and CRM tools
Euro bn, as of 2005
Total Assets 31.0 1 21.4%
Deposits 21.5 1 20.7%
Gross Loans 17.3 1 21.2%
AuM 6.2 1 39.3%
Credit Cards (#, mln) 0.8 2 -
Customers (#, mln) 5.6 2 -
Branches 1,290 1 _
FTE 26,493 2 -
Total Revenues (mln) 1,825 1 -
Net Profit (mln) 634 1 -
RANKING MKT SH.
2005 CAGR 05-08
12
9
11
7
6.2 5.7(6)
Loan growth(4), %
Deposit growth(4),%
Spread(5), %
AuM growth(4),% 63 15
38.2
241
-
4.3% (real)
Population, mln
GDP, Euro bn
Banked population(3),% 62 -
(5) End-of-period Banking System data; compound rates calculated on average of FX and LC Loans and Deposits;
(6) 2008(4) Nominal Growth
24
5 April 2006
THE MERGER
BSC Authorization to exercise the voting rights on BPH
19 April 2006 Agreement with the Minister of Treasury:
Sale of 200 outlets, related activities and former BPH brand
2 possible structures for the transaction
By October 2006 Identification of structure and activities to be sold
Year end 2006 Filing with the authorities
2007 2007 sale and merger
PRELIMINARY
25
POLISH MERGER TO SET THE “UNIVERSAL BANK BENCHMARK” IN THE REGION
IT and operations merger
Tight cost control and effective risk management
Growth in retail with focus on AUM, consumer lending and cards
Selective growth in SME and mid-Corporate
Added value services for Corporate
KEY STRATEGIC INITIATIVES
No perimeter changes and no capital gains included in the plan
Cost savings and synergies of 60 mln in 2008 (additional savings expected in 2009)
KEY FINANCIALS
2005 2008
1,825 ~7% CAGRTotal revenues, mln
AUM (mutual funds), mln 6,235 ~30% CAGR
Avg. RWA, bn 16.0 ~12% CAGR
53.3% ~46%Cost/Income
79 stableCost of risk, bp
EVA, mln ~240 ~370
26
AGENDA
Scenario, positioning and targets
3y plan strategic pillars
Summing up
Merger in Poland
Successfully completing the mergers
Cross border initiatives
Selective growth: the cases of Turkey and Russia
27
Eurozone(1) Turkey(2) Eurozone Turkey
86
545
81
208
TURKEY: A HUGE MARKET WHERE UNICREDIT IS VERY WELL POSITIONED …
Branches per mln inhabitants (2005)
(Loans+Deposits)/GDP (2005)
Strengths Strengths
■ Efficiency■ Risk management■ Sales effectiveness and
focus on AUM
■ Card Business■ Wide branch network■ Large customer base
Euro bn, all data at 100% as of 2005
Total Assets 27.5 5 9.4%
Deposits 17.0 4 10.6%
Gross Loans 13.8 4 11.9%
AuM 4.2 1 22.7%
Credit Cards (#, mln) 5.0 1 21.1%
Customers (#, mln) 7.2 - -
Branches 642 5 9.3%
Employee 16,189 - -
Total Revenues (mln) 1,712 - -
Net Profit (mln) 217 - -
RANKING MKT SH.
2005 CAGR 05-08
51
27
23
14
6.2 4.7(5)
Loan growth(3), %
Deposit growth(3),%
Spread(4), %
AuM growth(3),% 20 14
71.6
291
-
5.5% (real)
Population, mln
GDP, Euro bn
(1) As of 2004, including branches of Cis from EEA and third countries(2) As of Sep 2005
Source: UniCredit-CEE Research Network and ECB
(3) Nominal Growth(4) End-of-period Banking System data; compound rates calculated on average of FX and LC Loans and Deposits
(5) 2008
28
… FOCUSING ON SUSTAINABLE PROFITABILITY AND GROWTH TO BECOME THE BANK OF FIRST CHOICE FOR CUSTOMERS AND EMPLOYEES
Complete IT and operations integration in order to achieve synergies through tight cost management
Strong risk management both on market and credit risk
Improve sales effectiveness and leverage on the huge potential of YKB’s customer base
Consolidate leadership in AUM and credit cards and focus on consumer lending
Selective growth in Corporate and SME and increase in fee-based services
Expand branch network by 100 to 745 achieving break-even in 12-18 months (as per Koc bank experience)
KEY STRATEGIC INITIATIVES KEY FINANCIALS
2005 2008
653 ~13% CAGRTotal revenues, mln
AUM (mutual funds), mln 1,794 ~14% CAGR
Avg. RWA, bn 6.4 ~20% CAGR
57% ~47%Cost/Income
1.1%Cost of risk
EVA, mln 35 ~180
~0.9%
Figures are pro-quota (proportional consolidation of banks according to the share of ownership), except number of branches
all figures are pro-quota
29
Strengths
Euro bn, as of 2005
Total Assets 4.7 8 1.7%
Deposits 3.2 9 1.6%
Gross Loans 2.7 10 1.7%
Customers (#, mln) 0.2 - -
Branches 30 10 -
Employee 1,497 - -
Total Revenues (mln) 214 - 1,2%
Net Profit (mln) 85 9(7) 1,6%(7)
RANKING MKT SH.
THE RUSSIAN BANKING MARKET PRESENTS STRONG OPPORTUNITIES FOR GROWTH AND IMB IS WELL POSITIONED …
2005 CAGR 05-08
41
39
33
31
7.9 5.6(6)
Loan growth(4), %
Deposit growth(4),%
Spread(5), %
AuM growth(4),% 115 53
143.5
616
-
5.6% (real)
Population, mln
GDP, Euro bn
Banked population(3),% 51 -
(1) As of 2004, including branches of Cis from EEA and third countries(2) Figures refer to regional branches(3) Age 15+
Eurozone(1) Russia(2) Eurozone Russia
23
545
51
208
Branches per mln inhabitants (2005)
(Loans+Deposits)/GDP (2005)
■ 8th largest bank in Russia with focus on Corporate Banking (1.7% market share and ~60% revenues)
■ Outstanding track record of sound growth and profitability
■ Solid reputationSource: UniCredit-CEE Research Network and ECB
(5) End-of-period Banking System data; compound rates calculated on average of FX and LC Loans and Deposits
(6) 2008(7) Calculated on pre-tax profit(4) Nominal Growth
30
Leverage strong positions in Corporate and business partners (e.g. dealers, real estate agents) to acquire new retail customers
Finance expansion in Retail through Corporate business (both local and Group customers in Russia)
Expand branch network (increase of ∼70 to ∼110 by 2008) concentrate in Moscow and St. Petersburg’s Regions
Expand Retail lending (car loans, mortgages, credit cards and consumer loans) mostly to payroll customers
Maintain strict market and credit risk control
2005 2008
215 ~30% CAGRTotal revenues, mln
Avg. RWA, bn 4.3 ~27% CAGR
~42% ~46%Cost/Income
0.5%Cost of risk
EVA, mln 26 ~60
~0.6%
… TO EXPLOIT THE MARKET POTENTIAL VIA A FOCUSED GROWTH STRATEGY
KEY STRATEGIC INITIATIVES KEY FINANCIALS
31
AGENDA
Scenario, positioning and targets
3y plan strategic pillars
Summing up
32
SUMMING UP
By 2008 CEE and PM Divisions will have …
Successfully completed all mergers
Achieved state-of-the-art operations with high efficiency and sound risk control
Reinforced the leadership in the Region through a selective growth on relevant and fast growing markets
Delivered huge value for the shareholders
EVA ~ 870 Euro mln in 2008
CI < 50% in 2008
Set the basis for further sustainable growth
33
ANNEX
34
CEE REGION (INCLUDING POLAND MARKETS): 2005 P&L
Net Interest income (excl. div.)
Net non interest income
Total revenues
Operating costs (incl. dep.)
Operating income
Net income
Net provisions
(mln Euro)
Net income for the group
- of which: Staff costs
- of which: Other admin. expenses
- of which: Net write-downs of loans
Cost/income Ratio
Profit/loss & net write-downs on investments
2005
2,626
1,570
4,196
1,870
-905
-1,116
-2,326
1,405
1,003
-294
-317
208
55.4%
35
CEE DIVISION (EXCLUDING POLAND MARKETS): 2005 P&L
2005
1,526
830
2,356
-1,008
-556
-620
-1,347
764
633
-174
-192
150
57.2%
(mln Euro)
Net Interest income (excl. div.)
Net non interest income
Total revenues
Operating costs (incl. dep.)
Operating income
Net income
Net provisions
Net income for the group
- of which: Staff costs
- of which: Other admin. expenses
- of which: Net write-downs of loans
Cost/income Ratio
Profit/loss & net write-downs on investments
36
POLAND MARKETS DIVISION: 2005 P&L
2005(mln Euro)
1,099
741
1,840
862
-350
-496
-978
641
370
-120
-124
58
53.2%
Net Interest income (excl. div.)
Net non interest income
Total revenues
Operating costs (incl. dep.)
Operating income
Net income
Net provisions
Net income for the group
- of which: Staff costs
- of which: Other admin. expenses
- of which: Net write-downs of loans
Cost/income Ratio
Profit/loss & net write-downs on investments
Poland (Pekao, BPH, Xelion Poland) and Ukraine