Q1 2010 results of the BRE Bank Group

Q1 2010 results of the BRE Bank Group

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).
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