BRE Bank Group performance in Q3 2010

BRE Bank Group performance in Q3 2010

PLN 206.5 million of net profit - the best quarterly result in two years. Record-high recurrent income. Significant decrease in creation of loan loss provisions. Acquisition success: more than 80.3 thousand new retail clients and 100 new net corporate clients.

Increase in profitability

In Q3 2010, the Bank achieved revenues of PLN 825.1 million, i.e. an income increase of 7.7 % compared to Q2 and a plus of 13,9% YoY. If we consider the development of our core revenues, that is the recurrent income, it reached PLN 795 million (up by 6% QoQ) – the highest level ever, says Wiesław Thor, Vice President of BRE Bank. These results are mostly due to net interest income which was by 10,3% higher QoQ (totalling PLN 481 million in Q3).

Net fee and commission income increased by 15.5% QoQ, totalling PLN 199,2 million, i.a. due to growth of product sales. Thanks to the considerable increase in income, the cost/income ratio improved after three quarters of 2010, totalling 51.0%.

A considerable decrease in the creation of new loan loss provisions (by 37% less QoQ) also supported the good performance of BRE - this is a result of the improvement of macroeconomic situation which our clients feel more and more clearly.

Successes in client acquisition

In Q3, BRE retail banking acquired more than 80 thousand new customers; from the beginning of 2010 more than 311 thousand clients decided to entrust their funds to mBank and MultiBank, says Wiesław Thor. All the indications are that the assumed number of 4 million clients will be achieved before 2012.

Clients appreciate the high quality of services, and the best proof of that is the fact that two retail brands of BRE have been awarded Godło Jakości Obsługi 2010 (2010 Service Quality Emblem). Consequently we have been introducing innovative solutions, and in this quarter, the new mTRANSFER functionalities and the introduction of Visa Paywave contactless card attracted clients' attention.

Both the acquisition of new clients and increased cross-selling to the existing client base improved the sales of new retail loans, mainly non-mortgage loans, which were up by 8% QoQ. Also, the corporate banking business line reported many successes in client acquisition. Only in Q3, the number of serviced corporate clients increased by 100 net and, at present, totals 13 126 (the highest customer base in history.

The profit generated by subsidiaries had significant impact on BRE Bank result. In Q3 2010, they earned in total PLN 76.4 million gross, against PLN 62.6 million YoY. The results, when compared with last year's figures, improved in BRE Leasing, BRE Bank Hipoteczny, BRE Ubezpieczenia and BRE Wealth Management.