PLN 115 million net profit in Q1, Retail Banking business with record results. 126 thousand new clients – over 2 thousand clients daily. Growing effectiveness - 51.4 % of Cost/Income ratio. Issue of shares with pre-emptive rights planned to come.
BRE Bank profitable in all the Business Lines
BRE Bank's net profit in Q1 2010 reached PLN 115 million, which means an increase by over 50% YoY. “It was a very good quarter for BRE Bank. The first three months of the year showed that the Group is heading for profitable growth”, says Mariusz Grendowicz, Chief Executive Officer of the Bank. “The Corporate Banking Business Line as well as the Investment and Retail Banking Business Lines have improved their performance QoQ”, adds the CEO of BRE. The results of the latter hit a record high of (PLN 109 million gross). Interest results in Q1 totalled PLN 391 million, and fees and commissions results increased by 43 % YoY up to PLN 174 million. The aforesaid is due to an increase in sales of loans, investment funds and insurance products.
Growing effectiveness
“Under the BREnova programme, which was carried out last year, our Bank has become a more effective institution. Its Cost/Income ratio fell to 51.4 % - an exceptionally low level compared to the entire sector”, says Mariusz Grendowicz. The good performance of the Bank was also due to decreasing net provisions - in the first three months of 2010 provisions fell by 11% QoQ.
Clients choose BRE Bank
The CEO of BRE Bank claims that the institution headed by him is well prepared for further profitable growth. Only in the first quarter of 2010 BRE Bank acquired 126 thousand new clients (in last year the bank acquired almost half a million). “The Clients open accounts with mBank and MultiBank because they want to have access to the most thorough banking offer in Poland”, says the CEO of BRE Bank. Clients entrust BRE Bank with more and more savings - in the first quarter the value of the retail deposits grew by PLN 1.4 billion.
Issue of shares with pre-emptive rights planned to come shortly
Pursuant to the resolution adopted by shareholders on 30 March, BRE Bank works on the public offering of new issue of shares with pre-emptive rights. Investors will be offered from 1 up to maximum 20,783,617 new shares. The transactions record date was scheduled for 18 May 2010. Commerzbank, the major shareholder of the Bank (holds 69.8% of the share capital) declared it will exercise fully its pre-emptive right. The Bank expects that the new issue will have been closed by the end of June 2010.
This material is for informational purposes only and in no case should it form a basis for taking decisions on acquisition of securities of BRE Bank SA (the “Bank”) in the public offering of shares with pre-emptive rights. This material does not constitute an offer to sell securities, or an invitation to subscribe for or acquire any securities of the Bank.
The only legally binding offering document containing information on the public offering of shares of BRE Bank SA with pre-emptive rights and on their admittance and listing on the regulated market maintained by the Warsaw Stock Exchange (Giełda Papierów Wartościowych S.A. w Warszawie) is the prospectus which will be approved by the Polish Financial Supervision Authority (KNF), published and made available on the Bank’s website (www.brebank.pl) and on the website of Dom Inwestycyjny BRE Banku SA (www.dibre.pl).
This material cannot be disseminated, directly or indirectly, on the territory of or to the United States of America or in other countries in which public dissemination of the information contained in this material may be subject to limitations or banned by law. The securities, referred to in this material, have not been and will not be registered on the basis of the U.S. Securities Act of 1933, as amended, or by any other authority governing securities trading in any other state or jurisdiction in the United States of America, and cannot be offered and sold on the territory of the United States of America except for the transactions not subject to the registration obligation provided for in the U.S. Securities Act or on the basis of an exception to such registration obligation.
The information contained in this material does not constitute an offer to purchase or an invitation to acquire; it is also not allowed to sell the securities indicated in this material in any jurisdiction in which such an offer or invitation to acquire would be unlawful prior to registration, exemption from such registration or other type of qualification under law of a given jurisdiction. It is not allowed to distribute this material on the territory of Canada, Japan or Australia. The information contained in this material does not constitute an offer to sell or an invitation to make an offer to acquire securities in Canada or Japan.
This material is disseminated among and addressed solely to (i) the persons staying outside the territory of Great Britain or (ii) investment professionals within the meaning of Article 19(5) of the Regulation of 2005 based on the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005) or (iii) high net worth entities, and other persons to whom this material may be lawfully communicated in accordance with Article 49(2)(a)-(d) of the aforesaid Order (such persons are hereinafter referred to as the "relevant persons")). The securities referred to in this material will be made available only to the relevant persons, while an invitation, offer or obligation to acquire or purchase the securities will be made available only to the relevant persons or submitted only by the relevant persons. A person not being the relevant person cannot act on the basis of this material or any part of it and cannot refer to it.
BRE Bank's net profit in Q1 2010 reached PLN 115 million, which means an increase by over 50% YoY. “It was a very good quarter for BRE Bank. The first three months of the year showed that the Group is heading for profitable growth”, says Mariusz Grendowicz, Chief Executive Officer of the Bank. “The Corporate Banking Business Line as well as the Investment and Retail Banking Business Lines have improved their performance QoQ”, adds the CEO of BRE. The results of the latter hit a record high of (PLN 109 million gross). Interest results in Q1 totalled PLN 391 million, and fees and commissions results increased by 43 % YoY up to PLN 174 million. The aforesaid is due to an increase in sales of loans, investment funds and insurance products.
Growing effectiveness
“Under the BREnova programme, which was carried out last year, our Bank has become a more effective institution. Its Cost/Income ratio fell to 51.4 % - an exceptionally low level compared to the entire sector”, says Mariusz Grendowicz. The good performance of the Bank was also due to decreasing net provisions - in the first three months of 2010 provisions fell by 11% QoQ.
Clients choose BRE Bank
The CEO of BRE Bank claims that the institution headed by him is well prepared for further profitable growth. Only in the first quarter of 2010 BRE Bank acquired 126 thousand new clients (in last year the bank acquired almost half a million). “The Clients open accounts with mBank and MultiBank because they want to have access to the most thorough banking offer in Poland”, says the CEO of BRE Bank. Clients entrust BRE Bank with more and more savings - in the first quarter the value of the retail deposits grew by PLN 1.4 billion.
Issue of shares with pre-emptive rights planned to come shortly
Pursuant to the resolution adopted by shareholders on 30 March, BRE Bank works on the public offering of new issue of shares with pre-emptive rights. Investors will be offered from 1 up to maximum 20,783,617 new shares. The transactions record date was scheduled for 18 May 2010. Commerzbank, the major shareholder of the Bank (holds 69.8% of the share capital) declared it will exercise fully its pre-emptive right. The Bank expects that the new issue will have been closed by the end of June 2010.
This material is for informational purposes only and in no case should it form a basis for taking decisions on acquisition of securities of BRE Bank SA (the “Bank”) in the public offering of shares with pre-emptive rights. This material does not constitute an offer to sell securities, or an invitation to subscribe for or acquire any securities of the Bank.
The only legally binding offering document containing information on the public offering of shares of BRE Bank SA with pre-emptive rights and on their admittance and listing on the regulated market maintained by the Warsaw Stock Exchange (Giełda Papierów Wartościowych S.A. w Warszawie) is the prospectus which will be approved by the Polish Financial Supervision Authority (KNF), published and made available on the Bank’s website (www.brebank.pl) and on the website of Dom Inwestycyjny BRE Banku SA (www.dibre.pl).
This material cannot be disseminated, directly or indirectly, on the territory of or to the United States of America or in other countries in which public dissemination of the information contained in this material may be subject to limitations or banned by law. The securities, referred to in this material, have not been and will not be registered on the basis of the U.S. Securities Act of 1933, as amended, or by any other authority governing securities trading in any other state or jurisdiction in the United States of America, and cannot be offered and sold on the territory of the United States of America except for the transactions not subject to the registration obligation provided for in the U.S. Securities Act or on the basis of an exception to such registration obligation.
The information contained in this material does not constitute an offer to purchase or an invitation to acquire; it is also not allowed to sell the securities indicated in this material in any jurisdiction in which such an offer or invitation to acquire would be unlawful prior to registration, exemption from such registration or other type of qualification under law of a given jurisdiction. It is not allowed to distribute this material on the territory of Canada, Japan or Australia. The information contained in this material does not constitute an offer to sell or an invitation to make an offer to acquire securities in Canada or Japan.
This material is disseminated among and addressed solely to (i) the persons staying outside the territory of Great Britain or (ii) investment professionals within the meaning of Article 19(5) of the Regulation of 2005 based on the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005) or (iii) high net worth entities, and other persons to whom this material may be lawfully communicated in accordance with Article 49(2)(a)-(d) of the aforesaid Order (such persons are hereinafter referred to as the "relevant persons")). The securities referred to in this material will be made available only to the relevant persons, while an invitation, offer or obligation to acquire or purchase the securities will be made available only to the relevant persons or submitted only by the relevant persons. A person not being the relevant person cannot act on the basis of this material or any part of it and cannot refer to it.