On 23 December 2004, BRE Bank has disclosed to the public the current report on “Factors behind BRE Bank’s financial performance in 2004”. BRE Bank has decided to publish the information contained in that release with the intention to maintain far reaching transparency of the current and future business activities of the Bank.It should be stressed, in particular, that the financial results of the Bank on its core business operations in the 4th quarter of the present year are better than originally anticipated. The cause of the much lower than anticipated net result (after tax) for the end of the present year will consist of the one-off measures:- connected with the changed approach to the valuation of assets;and- restructuring measures, connected with the modification of business strategy.The detailed financial results for the 4th quarter 2004 will be disclosed by 16 February 2005 at the latest.Together with the most recent changes in the Management Board, also the approach to the business activities of the BRE Bank will change, especially with respect to the investments on its own account. With the intention to optimise the future structure of its financial results, BRE Bank has adopted the decision to move away from engaging itself in highly risky investments.At the same time, in connection with the medium term plans to generate high and above all stable and sustainable rates of return (return on equity – ROE – at the target level of over 20%), BRE Bank intends also to undertake the appropriate measures with the objective to restructure selected strategic investments of the Bank. The restructuring measures will concern those companies, which do not satisfactorily correspond with:- the rate of return rations expected by the BRE Bank, and/or- the synergies within the BRE Bank Group, which are key for the development of its “core business”.In keeping with the most recent announcements, BRE Bank firmly persists in its will to achieve the position of the best commercial bank within the next few years (in terms of the Bank’s profitability, its customer relationships and the quality of service and product range).It is the view of the Management Board that the new approach to the Bank’s market operations will enable the successful implementation of such ambitious targets. Their accomplishment, however, required bold and well thought through measures to be taken with regards to the current valuation of assets and the restructuring of the Bank’s investments.The measures taken are intended to allow entry into the new year of 2005 with a double energy injection combined with a new accounting structure of the Bank’s assets, adapted to its new strategic plans.