The shareholders of BRE Bank approved the new issue of shares with pre-emption right

The shareholders of BRE Bank approved the new issue of shares with pre-emption right

Strengthening of the capital base and gaining funds for expansion within the strategy for 2010-2012 – are the main objectives of the issue of shares with pre-emption right, which was approved by the shareholders of BRE Bank at today's Annual General Meeting. They also decided on earmarking the total profit for 2009 for the general risk fund.

Under the resolution BRE Bank may issue with the pre-emption right from 1 (one) to maximum 20 783 617 shares (the current Bank's capital is composed of 29 690 882 shares) with the nominal value of PLN 4 each. 18 May 2010 was set as the date of the pre-emption right. The Bank's Management Board is authorised to determine the final number of shares of the new issue within the limits set by the Annual General Meeting. Commerzbank AG, which is the owner of shares representing 69.8% of share capital of BRE Bank has already declared that it would use the pre-emption right, to which it is entitled to, in full.

Increasing share capital through the issue of shares with pre-emption right is a part of the strategy of BRE Bank for 2010-2012. It provides for an over 10% -average annual growth in income in that period, and in 2012 reaching approx. 20%- (gross return on equity (ROE). - Apart from expansion in two key segments– retail and corporate banking – the main assumption of the strategy is stable growth achived thanks to tight cost discipline. Our model will be based, to a large extent, on effective risk management, secure financing strategy and strong capital structure. Strengthening of the capital base, conducted within the public offer of the shares of the new issue is to support strategic initiatives of the Bank, allow for its profitable growth, and to enable the Bank to maintain flexibility in adaptation to the possible new regulatory and market requirements – said Mariusz Grendowicz, CEO of BRE Bank.

During the Annual General Meeting financial statements for 2009 were approved. - It was a very good year for BRE Bank. We acquired new clients, increased the deposit base and recorded a growth of interest and commission result. We have a good starting position for 2010 and subsequent years. The funds from the issue of shares will help us to use the potential– emphasised Mr Grendowicz. The year 2009 ended for the Bank with net profit in the amount of PLN 57.1 million, which, in line with a decision of the shareholders, was in whole earmarked for the general risk fund.

Legal restrictions:
This material is solely of informative nature and in no case should form a basis for taking decisions on acquisition of securities of BRE Bank S.A. with registered office in Warsaw (“Bank”) in the planned public offering of shares. This material does not constitute an offer of sale of securities and it is not an invitation to subscription for or acquisition of any securities of the Bank. In particular it does not constitute an offer of purchasing securities in the United States of America.
The only legally binding document containing information on public offering of shares of the Bank in Poland ("Offering”) will be the prospectus ("Prospectus”), which will be prepared in connection with the possible public offering of shares of the Bank with pre‐emption right and their admittance to trading and floating on the regulated market (primary market) conducted by the Warsaw Stock Exchange ("WSE"). The Bank will be able to conduct the Offering in Poland upon approval of the Prospectus by the Polish Financial Supervision Authority, being a regulator exercising supervision over the capital market in Poland, and its publication. In connection with the Offering in Poland and application for admittance to and floating of securities of the Bank on the WSE, the Bank will make the Prospectus available on its website(www.brebank.pl) and on the website of Dom Inwestycyjny of BRE Bank S.A. (www.dibre.com.pl).
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