Comments to Consolidated Report of Bank BPH Group FOR 4

Transcription

Comments to Consolidated Report of
Bank BPH Group
FOR 4 QUARTER
2006
Contents
1.
2.
Executive summary...............................................................................................................................................................3
Principles applied in the consolidated quarterly report and their changes ....................................................................4
3.
4.
5.
Bank BPH SA stock prices developments ..........................................................................................................................4
Economic environment and market situation in Q4 2006 .................................................................................................5
Income statement of Bank BPH Group ...............................................................................................................................6
5.1 Net interest income.........................................................................................................................................................6
5.2
5.3
5.4
6.
5.5 General administrative expenses ...................................................................................................................................7
5.6 Asset impairment charges ..............................................................................................................................................7
Balance sheet of Bank BPH Group......................................................................................................................................7
6.1
6.2
6.3
7.
8.
9.
Impairment charges........................................................................................................................................................6
Net fee and commission income ....................................................................................................................................7
Net trading income .........................................................................................................................................................7
Assets.............................................................................................................................................................................7
Loans and advances ......................................................................................................................................................8
Liabilities.........................................................................................................................................................................8
6.4 Deferred income tax provision and assets .....................................................................................................................8
Business segmentation ........................................................................................................................................................8
Important actions of Bank BPH Group and list of key developments..............................................................................9
8.1 Equity reduction of the indirect subsidiary: BPH Towarzystwo Funduszy Inwestycyjnych.............................................9
Important details on the Bank’s human resources, asset and financial standing and its financial performance .......9
9.1 Information on the integration of Bank BPH and Pekao S.A. .........................................................................................9
9.2
9.3
9.4
Changes in the Bank’s authorities and other personnel matters ..................................................................................10
Sale of loan receivables ...............................................................................................................................................10
Rating changes.............................................................................................................................................................10
10.
11.
12.
13.
Developments after the quarterly report date with a potential impact on future financial performance ....................10
Factors influencing Bank BPH Group’s results in next quarter or beyond ...................................................................11
Shareholders controlling directly or indirectly 5 per cent or more of the Bank’s GSM votes .....................................11
Information on the Bank’s shares held by the Management and Supervisory Boards’ members ..............................11
14.
15.
16.
New proceedings before courts and other public administration bodies .....................................................................11
Management Board’s position on actual performance against published annual forecasts ......................................11
Transactions with related companies................................................................................................................................11
17.
18.
19.
Information on loan underwriting or guarantees .............................................................................................................12
Additional information ........................................................................................................................................................12
Fair value and impairment of financial assets..................................................................................................................12
20.
Other developments............................................................................................................................................................12
Comments to the Consolidated Report of Bank BPH Group for Q4 2006
2
objectives were exceeded: pre-tax ROE reached 25% vs.
1. Executive summary
a 22% target defined in the strategy. The C/I ratio hit a
Items
4Qs 2006
4Qs 2005
Change
- Net interest income
2 175 466
1 981 421
+9.8%
- Net fee and commission income
1 349 485
1 022 959
+31.9%
- Net trading income
-6 829
79 346
-108.6%
- Total net revenue*
3 518 122
3 083 726
+14.1%
-220 226
-255 469
-13.8%
- Impairment charges
- General administrative expenses
record low of 46.7% against a strategy assumption of
51%, setting a benchmark on the Polish market, and
Income Statement (PLN ‘000)
being also competitive among top European banks.
Another spectacular success of the implemented strategy
is seen in a more than 10 times higher net profit per
1 share, surging from PLN 4.65 in 2002 to PLN 44.15 in
the year 2006.
-1 619 112
-1 534 516
+5.5%
- Pre-tax profit
1 633 586
1 294 445
+26.2%
- Profit after tax
1 267 769
1 027 436
+23.4%
- Total assets
64 757 089
57 922 199
+11.8%
profit jumped nearly 4 times to PLN 1 633 586 ths, while a
- Net amounts due from Customers**
35 594 340
31 858 225
+11.7%
net profit improved 5 times (to PLN 1 267 769 ths). The
- Risk weighted assets
39 650 463
35 566 366
+11.48%
Retail Banking Division had the highest, 62% share in
- Amounts due to Customers
41 438 811
37 304 509
+11.1%
6 860 855
6 360 856
+7.9%
- Return on equity before tax (ROE pre-tax)
25.01%
21.04%
+3.97pp.
- Return on equity after tax (ROE net)
19.41%
16.70%
+2.71pp.
- Return on assets (ROA)
2.01%
1.85%
+0.16pp.
- Interest margin on total assets
3.44%
3.56%
-0.12pp.
46.74%
49.51%
-2.77pp.
1209
12.76
-0.67pp.
Balance Sheet (PLN ‘000)
- Shareholders' funds
Ratios (%)
- Cost income ratio (C/I)
- Capital adequacy ratio (CAR)
pre-tax
profit
generation.
The
contribution
of
the
Corporate Banking and Real Estate Finance Division
equaled 25%, and 9% was attributable to the International
Markets Division.
Bank BPH has shown again how well it can capitalize on
favorable macroeconomic trends. Broader scale of
operations triggered a 14% rise of net revenues to PLN
3.44%, the Bank strengthened by PLN 194 mln its net
interest income. Net F&C income grew by an impressive
BANK BPH FINANCIAL RESULTS SETTING A RECORD
32% (translating to PLN 326 mln), however trading result
PRE-TAX PROFIT ABOVE PLN 1.6 BN
dropped by PLN 86 mln year-on-year (“YoY”), due to
COST/ INCOME RATIO OF 46.7% AS A BENCHMARK ON
POLISH BANKING MARKET
fluctuating valuation of capital market instruments.
After 4Qs 2006 a pre-tax profit reached PLN 1 634
Bank BPH has not given up its efforts to streamline
mln (up by 26%) and a net profit PLN 1 268 mln (up
processes and procedures. The advanced centralized
by 23%), while in Q4 alone: PLN 459 mln (17%
credit risk management system with scoring tools - Aurum
improvement on Q4 2005) and PLN 351 mln (up by
comprises already 12 lending products for retail clients
13%), respectively.
and SME across the whole branch network. The quality of
Efficiency improvement: pre-tax ROE rose to 25%,
loan portfolio further improved. The volume of NPLs was
net ROE to 19.4% and C/I ratio dropped to 46.7%,
reduced by PLN 671 mln to PLN 2 113 mln, while their
accompanied by a 23% year-on-year upbeat of net
share in the overall loan portfolio reached 6%. These
profit per 1 share (PLN 44).
changes were accompanied by a 12% increase in
•
Declining risk costs and NPL ratio down to 6%.
lending. Also the project of non-performing loans
•
Dynamic business expansion: loans to customers
securitization worth more than PLN 1 bn came to an end.
•
rising by 12% and deposits by 11%; high sales
growth of strategic products in all market segments,
e.g. BPH TFI’s assets up by 80%, credit cards by
29%; new clients’ acquisition and fast development
of modern transactional banking via BusinessNet;
higher turnover on money and capital markets; the
Bank as a leader in co-financing of the EU projects
for small and medium-sized enterprises (SME).
3
results. When compared to 2002, a consolidated pre-tax
3 518 mln. Despite a lower by 0.12 pp. interest margin of
*/ Net interest income + Net F&C + Net trading income
**/ Net of impairment charges
•
Last year Bank BPH achieved the all-time high financial
Last year the access for clients to Bank BPH offer was
facilitated
through
the
development
of
distribution
network: 5 own (to a total of 485) and 52 partner outlets
(to 427) were opened. The number of individual and SME
clients using internet banking rose to 615 ths, whereas for
call center - to 747 ths. Above 88 ths of new current
accounts for individuals and 29 ths Harmonium packages
for SME were sold in 2006. Again Bank BPH was No. 1 in
The year 2006 marked for Bank BPH the final stage of the
co-financing of the EU projects for SME, seizing 15% of
2004-2006
The
the market. In spite of the withdrawal from f/x mortgages
generated results are an evidence that strategic financial
for private individuals, the Bank saw their 25% volume
medium-term
strategy
execution.
Comments to Consolidated Report of Bank BPH Group for Q4 2006
growth, up to PLN 12.1 bn. Favorable growth dynamics
The accounting principles and calculation methods
was noted by PLN mortgages, sales of which in Q4 2006
applied in the interim report for Q4 2006 are the same as
were by 473% better than a year ago. However, lower
for the 1 , 2
than a market average overall volume growth contributed
quarters of 2005. They are described in detail in the 2005
to a fall in the market share from 19.2% at end-2005 to
Consolidated Report of Bank BPH Group and the
15.6% at the end of last year.
Consolidated Report for 1H 2006.
The average volume of loans for corporate clients
Bank BPH SA is a member of the European banking
reached at end-2006 PLN 14.3 bn and was by 7.2% lower
group with UniCredito Italiano S.p.A. (“UniCredit”) as its
than previously, suffering mainly from a 30% drop (PLN
parent company. UniCredit became the parent company
530 mln) of the average level of non-performing loans. In
of Bank BPH on 3 Nov. 2006 as a result of the transfer of
contrast, the average deposit volume surged by 19% to
the Bank’s shares from Bank Austria Creditanstalt AG
PLN 15.6 bn. The Bank noted significant turnover upturns
(BA-CA) to UniCredit. Reports of Bank BPH Group are
in modern transactional banking. Within one year the
consolidated directly into the financial reports of its
number of BusinessNet (an integrated internet system)
majority shareholder.
users doubled reaching 5 ths companies. Bank BPH
received from the Global Finance Magazine a title of ‘The
Best Trade Finance Bank in Poland’. The Bank’s position
in structured finance and commercial real estate is
enhanced consistently. Last year saw the concluding of
st
rd
quarters of 2006 and for all four
and its consolidated report includes the following
subsidiaries:
•
BPH Bank Hipoteczny SA, Warsaw, formerly HVB
Bank Hipoteczny SA, Warsaw, in whose equity the
Bank has a 99.95% interest;
•
In 2006 Bank BPH strengthened its leading position on
custody market. Driven by the acquisition of remote
and 3
Bank BPH SA is the parent company of Bank BPH Group,
29 syndicated loans (worth in total PLN 3.2 bn) and 34
agreements in real estate financing.
nd
BPH PBK Leasing SA, Warsaw, of which the Bank
holds 80.1%;
•
BPH Finance plc, London, a special purpose vehicle
Warsaw Stock Exchange (“WSE”) members as Bank BPH
owned in 99.99% by the Bank and founded to carry
new clients, the number of transactions settled boosted
out the Eurobond issue program, consolidated since
by 220% YoY, what secured a 50% market share. The
Bank was ranked first in arranging medium- and long-
1 June 2005;
•
BPH PBK Zarządzanie Funduszami Sp. z o.o.,
term issues of commercial debt, the total amount of which
wholly owned by the Bank and consolidated since
was up by 33% and equaled PLN 2 991 mln. It is also
Q1 2006.
worth noting that the margin on treasury products went up
The remaining subsidiaries and associated companies of
by 36%.
the Bank are not consolidated due to their immateriality.
2. Principles
applied
in
the
consolidated quarterly report and
their changes
3. Bank
BPH
SA
developments 1
stock
prices
The Q4 of 2006 saw an appreciation in the prices of the
This
report
Reporting
complies
Standards
with
(IFRS),
International
including
Financial
International
Accounting Standard (IAS) 34 on Interim Financial
Reporting. To the extent not regulated by the above
standards, financial figures are presented in compliance
with the Act of 29 Sept. 1994 on accounting (Journal of
Laws of 2002 No. 76, item 694 as amended) and the
majority of shares listed on the Warsaw Stock Exchange.
The main exchange indexes also made significant gains.
Between the first Oct. session and the last Dec. session
of 2006, the closing values of the largest companies
index, WIG20, went up by 12.1%, which represented its
greatest rise since Q3 2005. The broad market index,
WIG, increased by 14% over the same period. However,
implementing regulations issued there under, and also
with the Council of Ministers’ Ordinance (“Ordinance”) of
19 Oct. 2005 on current and periodic reports by issuers of
securities (Journal of Laws of 2005 No. 209, item 1744).
1
Bank BPH SA shares are listed on the main market of the Warsaw Stock
Exchange, in the continued quoting system. They are among the several
most liquid securities on the Warsaw bourse and are part of the prestigious
WIG20, WIG and WIG-Banki indexes. Global Depository Receipts (GDR) of
the Bank are also listed on the London Stock Exchange.
4
much greater growth was achieved by the banking sector
index, WIG-Banki: 21.4%. This was the biggest quarterly
upturn of that index since Q4 2001.
4. Economic environment and market
situation in Q4 2006
GDP figures for Q3 2006 published by the Central
Throughout the quarter, indexes almost never stopped
Statistical Office (GUS) slightly exceeded analysts’
going up. October was the best month for WIG20 and
expectations (5.5%). In Q3, the domestic product rose
WIG, while WIG-Banki behaved better in Nov. and Dec.
5.8% compared to its growth of 5.5% in Q2 2006 and
The bull run was due to the good sentiment on foreign
4.1% in Q3 2005. Among the contributors to GDP, the
bourses and the significant inflow of funds into Polish
gross capital investments were the fastest to grow: up
funds investing on stock markets. Quotations were also
19.8% year-on-year. Private consumption was also high,
boosted by relatively good Q3 results of companies and
rising by 5.5% YoY.
the continued positive outlook for their results to come. All
these factors fuelled the almost non-stop share price
growth until mid-Dec., with a downward correction
appearing only in the last days of the year. This correction
affected mainly small and medium-sized enterprises,
which had appreciated the most in the preceding months.
From early Oct. to late Dec., Bank BPH share prices went
up by 15.5%, which was almost exactly the same growth
as in the previous quarter. The Bank’s shares gained
more than the main WSE indexes, but less than the WIGBanki index. At the close of the first Q4 session on 2 Oct.,
Bank BPH shares stood at PLN 802, while at the last
session of the quarter on 29 Dec. they were quoted at
Industrial output gained 5.7% against the same period of
the previous year, but appeared to be lower as compared
with end-Sept., when the YoY growth was reported at
11.6%. The construction output adjusted for seasonality
was up 10.5% YoY. Compared to the previous Dec., 21
out of 29 industries reported output growth. Construction
output kept soaring: 17.9% against 2005 year-end.
Economic upturn translates into an improvement in the
labor market. The average employment in the corporate
sector has been growing systematically since early 2005,
at an annual rate of 4.1% at end-Dec., compared to 3.5%
YoY for the end of Q3. During the same period,
unemployment shrank from 15.3% to 14.9%.
PLN 926.50. Bank BPH shares recorded the highest price
at the close of a session on 18 Dec.: PLN 988.50, and the
Q4 of 2006 saw an increase in all measures of inflation,
lowest one on 2 Oct.: PLN 802. The average closing price
namely:
in Q4 amounted to PLN 900.43, representing a 14.5%
•
the annual consumer price index was at 1.4% YoY in
increase on the average closing price for Q3 2006. Bank
Dec. (against 1.6% YoY at the end of Q3), food and
BPH share price outperformed the market and maintained
non-alcoholic beverage prices rose by 1.8% YoY,
a clear growing trend nearly throughout the whole
rents and energy prices were up 4.7% YoY;
quarter. The quarterly turnover in the Bank’s shares
•
the producer price index went down to 2.8% YoY at
amounted to 1 040 million shares, a ⅓ increase on the
end-Dec. against 3.6% YoY at end-Sept., with the
previous quarter figure. The turnover per session average
greatest price increases observed in mining: 10.6%
reached 16 770 shares.
YoY;
•
Bank BPH SA share quotations against the background of
the WIG, WIG20 and WIG-Banks indexes of the WSE in Q4
2006 (standardized charts)
1 200 zł
1 100 zł
net underlying inflation rose to 1.6% YoY in Dec.
from 1.4% YoY in Sept.
During the quarter analyzed, the Monetary Policy Council
decided to keep NBP interest rates unchanged. They
Bank BPH
WIG 20
currently stand at: 4% (reference rate), 5.5% (lombard
WIG
WIG Banks
rate) and 2.5% per annum (deposit rate).
1 000 zł
In Q4, money supply measured by the M3 aggregate rose
900 zł
in comparison to Q3 to 15.7% YoY (against 13% YoY at
end-Sept.) according to preliminary NBP data. Household
800 zł
debt growth kept soaring at 33.4% YoY (31.1% YoY in
700 zł
Q3), mainly due to the continued fast growth of housing
600 zł
01/02/2006
03/13/2006
05/26/2006
08/07/2006
10/17/2006
12/29/2006
loans. Q4 saw a continued increase in the households
deposit expansion: by 9.7% YoY (against 7.3% YoY at
end-Sept.) and a faster rise of corporate deposits, which
5
swelled by 25.7% according to preliminary data, as
opposed to 19.3% at the end of Q3.
5. Income statement of Bank BPH
Group
Household and corporate debt growth (%YoY)
5.1 Net interest income
Household, LA
Corporate, RA
135
115
In Q4 2006, net interest income was 9.2% (i.e. PLN
46 389 ths) higher than in the comparable period of the
129
108
123
previous year. This improvement was mainly due to the
20% growth of the retail loan volume (calculated on the
117
101
111
Oct 06
Dec 06
May 06
Dec 06
Jul 05
Feb 05
Sep 04
Apr 04
Nov 03
Jun 03
94
Jan 03
105
basis of average volumes in the quarter) and of the
corporate deposit volume (+20%). The growth in interest
income was achieved regardless of the shrinking margins
on deposits and loans.
Moreover,
ahead
of
schedule
completion
of
the
restructuring program applied by the Bank for the banking
company of Pierwszy Komercyjny Bank SA in Lublin
Household and corporate deposit growth (% YoY)
108
140
105
135
130
102
125
99
120
96
115
Household, LA
Corporate, RA
93
taken over in 1999, and thus an earlier repayment of the
financial aid received from the NBP and the advance
granted by the Bank Guarantee Fund, lowered the net
interest income by PLN 32.5 mln.
Net interest income (PLN’000)
Q4. 2005
Dec 06
Oct 06
May 06
Dec 05
Jul 05
Feb 05
Sep 04
Apr 04
Nov 03
Jun 03
1
Interest
income
Interest
expense
GDP growth (same period of previous year = 100)
120
GDP
Inv estments
Domestic demand
854 960
2
Change (5/6)
4Qs 2006 4Qs 2005
PLN
‘000
105
Jan 03
90
Change (1/2)
Q4.
2006
110
PLN
‘000
%
3
4
5
6
%
7
8
730 913 124 047 17.0 3 258 546 2 873 270 385 276 13.4
-326 813 -242 153
Net income
from leasing
business
24 926
17 924
Net interest
income
553 073
506 684
-84 660 35.0 -1 166 190
7 002 39.1
46 389
-953 836 -212 354 22.3
83 110
61 987
21 123 34.1
9.2 2 175 466 1 981 421 194 045
9.8
5.2 Impairment charges
113
Over four quarters of 2006, PLN 220.2 mln of impairment
107
106 104,1
104,7
105,8
105,2105,5
104,2
103,7
102,8
102,1
106,1
104,9
103,9
3Q06
2Q06
1Q06
4Q05
3Q05
2Q05
1Q05
4Q04
3Q04
2Q04
1Q04
4Q05
3Q03
99
charges were made, which means that they decreased by
13.8% vs. the previous year. Q4 2006 saw a sale of nonperforming loans portfolio, which reduced provisions.
Provisions are set up under legal regulations on
impairment charges and the Bank’s prudential policy of
credit risk management.
Impairment charges (PLN’000)
Exchange rates vis-à-vis reference rate and inflation
EUR/PLN
Inflation - CPI %
USD/PLN
Reference rate
PLN
4,8
Q4 2006 Q4 2005
7
6
4,4
5
4,0
4
3
3,6
2
Dec-06
Sep-06
Jun-06
Mar-06
Dec-05
Sep-05
Jun-05
Mar-05
Dec-04
Sep-04
0
Jun-04
2,8
Jan-04
1
Mar-04
3,2
Increase
Revaluation of
loans and
advances
Provisions for
off-balance
sheet liabilities
Decrease
Revaluation of
loans and
advances
Provisions for
off-balance
sheet liabilities
Impairment
charges
1
2
-218 118 -317 387
Change (1/2)
PLN ‘000 %
-6 426
4Qs 2005
3
4
5
6
99 269 -31.3 -810 941 -1 260 568
-214 324 -310 961 96 637
-3 794
4Qs
2006
Change (5/6)
PLN ‘000 %
7
8
449 627 -35.7
-31.1 -805 919 -1 231 857 425 938
2 632 -41.0
-5 022
-28 711
-34.6
23 689 -82.5
199 421 258 164
-58 743 -22.8 590 715 1 005 099 -414 384 -41.2
198 032 248 586
-50 554 -20.3 578 374
1 389
9 578
-18 697
-59 223
-8 189 -85.5
970 600 -392 226 -40.4
12 341
34 499
-22 158 -64.2
40 526 -68.4 -220 226
-255 469
35 243 -13.8
6
Changes in general administrative expenses (PLN’000)
5.3 Net fee and commission income
Compared to Q4 2005, net fee and commission income
went up 24.5% (i.e. by PLN 70 595 ths) to the level of
PLN 358 750 ths, but when the cumulative data for
1
4 quarters of the analyzed year is compared, this income
Salaries including
employee benefits
improved by 31.9% (PLN 326 526 ths). The Investment
Building
maintenance
expenses and rents
Fund Company - BPH TFI (consolidated since March
2006) largely contributed to this result, achieving in Q4 a
net commission income of PLN 31 181 ths (over the
Change
(1/2))
Q4 2006 Q4 2005
PLN
‘000
%
3
4
2
208 513 213 037 -4 524 -2.1
48 508
35 516 12 992 36.6
Change (5/6)
4Qs 2006 4Qs 2005
5
6
PLN
‘000
%
7
8
829 065
762 183 66 882
8.8
197 879
209 579 -11 700 -5.6
Other expenses
90 979
76 746 14 233 18.5
384 428
356 564 27 864
7.8
Depreciation
55 277
39 495 15 782 40.0
207 740
206 190
1 550
0.8
403 277 364 794 38 483 10.5 1 619 112 1 534 516 84 596
5.5
Total
whole 2006, that figure amounted to PLN 96 295 ths).
Other material contributors to the net fee and commission
5.6 Asset impairment charges
income were commissions on domestic and foreign
Over 4 quarters of 2006, Bank BPH Group made an
payments as well as on securities and custody business.
impairment charge of PLN +179 mln to re-measure the
shares of Commercial Union PTE BPH CU WBK at their
Net commission income breakdown (PLN’000)
Change (1/2)
Q42006 Q4 2005
1
PLN ‘000
%
3
4
2
4Qs 2006 4Qs 2005
5
6
Change (5/6)
PLN ‘000
%
7
8
Securities
and custody
business
45 545
22 501
23 044
102.4
120 449
75 448
45 001
59.6
Loans and
advances
38 968
36 020
2 948
8.2
147 622
157 680
-10 058
-6.4
125 600 115 465
10 135
8.8
486 886
397 555
89 331
22.5
International
100 559 110 069
payments
-9 510
-8.6
432 911
383 780
49 131
12.8
Other
43 978 1072.6
161 617
8 496
Domestic
payments
48 078
Net fee &
commissio
n income
4 100
358 750 288 155
70 595
24.5 1 349 485 1 022 959
153 121 1802.3
326 526
31.9
fair value. Altogether, impairment charges to revalue fixed
assets totaled PLN -24 132 ths.
6. Balance sheet of Bank BPH Group
6.1 Assets
Compared to 2005 year-end, the balance sheet total of
Bank BPH Group rose 11.8% to PLN 64 757 mln. The
main driver of the change in the breakdown of assets was
the increase in the item “Other financial assets” (including
5.4 Net trading income
cash certificates whose value enhanced from PLN 686
In Q4 2006, net trading income was negative at
mln to PLN 6 089 mln) and amounts due from customers,
PLN -7.4 mln (for the whole 2006, it equaled PLN -6.8
primarily related to retail loans.
mln). The poor result on trading was brought about by the
drop in the pricing of the Polish government bond portfolio
and the adjustment of CIRS transaction measurement
Asset structure change (PLN’000)
Assets
(due to speculative interest rate market).
1
5.5 General administrative expenses
As compared with Q4 of the previous year, the operating
costs and general administrative expenses went up by
10.5% (corresponding to PLN 38 483 ths) and reached
PLN 403 277 ths. In the whole 2006 costs were higher by
2
3
4
As at
Change (5/6)
30.09.2006 PLN ‘000
%
5
6
7
Cash and balances
with central bank
2 242 832 1 746 258
496 574 28.4
1 695 571
547 261
32.3
Trading assets
2 909 319 2 405 687
503 632 20.9
2 567 032
342 287
13.3
Amounts due from
banks
8 656 912 11 841 741 -3 184 829 -26.9 12 954 334 -4 297 422 -33.2
Including
impairment writeoffs
-365
-891
526 -59.0
-589
224 -38.0
Amounts due from
customers
35 594 340 31 858 225 3 736 115 11.7 35 505 475
88 865
0.3
Including
impairment writeoffs
-1 365 514 -1 748 947
24 013
-1.7
higher remuneration within the Bank’s Group due to i.a.
Other financial
assets
13 025 985 8 006 413 5 019 572 62.7 10 283 833 2 742 152
26.7
strengthening
Property and
equipment
938 826
979 138
-40 312
-4.1
944 221
-5 395
-0.6
Intangibles
294 802
321 172
-26 370
-8.2
291 049
3 753
1.3
Assets of disposal
group classified as
held for sale
209 517
0
209 517 100.0
239 370
-29 853 100.0
884 556
763 565
120 991 15.8
926 139
-41 583
-4.5
64 757 089 57 922 199 6 834 890 11.8 65 407 024 -649 935
-1.0
5.5% and equal to PLN 1 619 122 ths. This increase was
mainly affected by the consolidating of BPH TFI and
of
incentive
programs
linked
with
performance.
Other assets
Total assets
7
As at
As at
Change (1/2))
31.12.2006 31.12.2005 PLN ‘000 %
383 433 -21.9 -1 389 527
6.2 Loans and advances
7. Business segmentation
Q4 2006 saw a further improvement in the quality
structure of loans. The proportion of non-performing loans
shrank from 8.7% at end-2005 to 6%, while the share of
watch-list loans fell from 4.1% to 3.2%, respectively.
30.09.2006
of the Group is conducted within the framework of
segment. The first ones include: Retail Banking and
31.12.2005
Corporate Banking, with competencies of profit centers.
Dues
category
31.12.2006
Normal
32 068 864 90.9 31 910 869 90.4 28 061 816 87.2 27 299 358 85.9
Watch
1 119 451
3.2
1 225 746
3.5
1 332 329
4.1
1 444 934
4.5
Nonperforming,
including:
2 113 230
6.0
2 164 604
6.1
2 784 238
8.7
3 030 629
9.6
PLN ‘000
related to the adopted management rules. Management
strategic customer segments and international markets
Loans and advances (NBP classification)
%
Segmentation of Bank BPH Group's activity is closely
%
PLN ‘000
%
PLN ‘000
30.09.2005
%
PLN ‘000
Sub-standard
178 352
0.5
236 002
0.7
303 227
0.9
506 458
1.6
Doubtful
233 812
0.7
336 968
0.9
320 372
1.0
404 807
1.3
Loss
1 701 066
4.8
1 591 634
4.5
2 160 639
6.7
2 119 364
6.7
Total
35 301 545 100.0 35 301 219 100.0 32 178 383 100.0 31 774 921 100.0
The International Markets segment, which mainly deals
with sales of treasury products and debt securities, is also
responsible for managing interest rate, foreign currency
and liquidity risks.
Selected items of Income Statement and Balance Sheet by business
segments over Q4 2006 (PLN’000)
Consolidated income
statement
6.3 Liabilities
The main reason for the change in the structure of asset
Net interest
income
financing sources during the year was the increase of
liabilities evidenced by certificates and of amounts due to
customers.
Asset financing changes (PLN’000)
Liabilities
As at
As at
31.12.2006 31.12.2005
1
Amounts due to
central bank
200 000
Amounts due to
banks
3 910 786
Amounts due to
customers
2
89 403
Change (1/2)
PLN ‘000
%
3
4
As at
30.09.2006
5
110 597 123.7.
5 489 273 -1 578 487 -28.8
94 181
Change (5/6)
PLN ‘000
%
6
7
105 819 112.4
8 401 968 -4 491 182 -53.5
41 438 811 37 304 509 4 134 302 11.1 38 649 814 2 788 997
Liabilities evidenced
with certificates
8 799 123
5 549 250 3 249 873 58.6
8 773 319
7.2
25 804
0.3
674 186
652 806
21 380
3.3
585 983
88 203 15.1
Trading financial
liabilities
1 351 770
1 242 839
108 931
8.8
1 155 355
196 415 17.0
Other liabilities
1 425 262
1 184 540
240 722 20.3
1 218 683
206 579 17.0
Provisions
Minority interests
Equity
Total liabilities
Impairment
charges
Net fee and
commission
income
Net Trading
income
General
administrativ
e expenses
Gross
operating
profit
Q1 2006
Q2 2006
Business segments
Retail
1
299 741
344 697
Corporate
2
105 408
103 618
INM
3
36 551
39 432
Other (not
allocated to
segments
Consolidate
d value
(1+2+3+4)
4
78 019
59 729
519 719
547 476
Q3 2006
312 978
105 438
52 840
83 942
555 198
Q4 2006
289 883
110 569
93 686
58 935
553 073
Q1 2006
Q2 2006
-50 709
-47 919
-19 521
-19 176
0
0
0
0
-70 230
-67 095
Q3 2006
Q4 2006
Q1 2006
Q2 2006
Q3 2006
Q4 2006
Q1 2006
Q2 2006
Q3 2006
Q4 2006
Q1 2006
Q2 2006
Q3 2006
Q4 2006
Q1 2006
-65 495
-15 511
269 810
278 059
262 286
290 792
0
0
0
0
-290 522
-279 535
-300 851
-327 292
228 457
1 291
-3 186
97 010
99 779
118 183
128 168
0
0
0
0
-100 930
-106 364
-93 202
-59 898
81 938
0
0
-1 120
-1 118
-2 599
-2 401
4 113
7 355
-3 360
-12 155
-15 321
-17 681
-8 726
-18 791
27 206
0
0
-50 012
-31 466
-48 077
-57 809
4 206
-5 525
-6 224
4 761
76
670
-3 449
2 704
25 666
-64 204
-18 697
315 688
345 254
329 793
358 750
8 319
1 830
-9 584
-7 394
-406 697
-402 910
-406 228
-403 277
363 267
Q2 2006
295 278
77 935
8 643
21 921
403 777
Q3 2006
208 920
131 906
46 313
20 924
408 063
Q4 2006
248 734
175 744
63 509
-29 508
458 479
Balance sheet
96 296
48 723
6 860 855
6 360 856
47 573 97.6
499 999
7.9
84 749
11 547 13.6
6 442 972
417 883
6.5
64 757 089 57 922 199 6 834 890 11.8 65 407 024
-649 935
-1.0
Total assets
31.03.2006 19 437 684
17 089 486
21 125 090
5 069 166 62 721 426
Total assets
30.06.2006 18 664 421
16 181 901
22 985 046
6 564 119 64 395 487
Total assets
30.09.2006 19 367 361
16 414 082
23 506 320
6 119 261 65 407 024
Total assets
31.12.2006 19 494 338
16 276 777
23 219 215
5 766 759 64 757 089
8 678 939 62 721 426
Total liabilities
31.03.2006 24 839 440
17 200 275
12 002 772
6.4 Deferred income tax provision and assets
Total liabilities
30.06.2006 24 310 090
17 334 286
12 617 578 10 133 533 64 395 487
The balance of deferred tax assets and provisions is
Total liabilities
30.09.2006 24 904 612
18 058 166
12 868 057
9 576 189 65 407 024
shown on the balance sheet. Their quarterly values
Total liabilities
31.12.2006 24 706 904
18 152 707
13 591 654
8 305 824 64 757 089
changed from the previous period only to the extent of the
* Net of the result on sales of treasury and custody products executed by the International
Markets Division and presented entirely in the results of the Corporate and Retail segments.
time passage.
Deferred income tax assets and liabilities (PLN’000)
As at
31.12.2006
As at
As at
As at
30.09.2006 31.12.2005 30.09.2005
Deferred income tax
assets
600 569
565 859
572 446
629 355
Income tax provision
549 405
485 889
534 989
569 457
8
8. Important actions of Bank BPH
Group
and
list
of
key
developments
Selected financial data of Bank BPH SA Group companies
(company data based on preliminary financial statements)
Registered
address
Company
9. Important details on the Bank’s
human
resources,
asset
and
financial standing and its financial
performance
After obtaining acceptance from the Austrian financial
Bank’s % of
Shareholders’
votes at the
equity
company’s GM
Assets
supervision authority on 3 Nov. 2006, BA-CA sold its
strategic 71.03% block of Bank BPH shares to UniCredit
Dominant entity
Bank BPH Spółka Akcyjna
Krakow
6 737 312 62 572 072
to fulfill the obligation undertaken by UniCredit to the
Consolidated subsidiaries
BPH Bank Hipoteczny SA
Warsaw
99.95%
238 755
1 761 885
BPH Finance plc
London
99.998%
6 565
5 880 152
BPH PBK Leasing SA
Warsaw
80.10%
194 381
194 412
BPH Auto Finanse SA*
BPH PBK Zarządzanie
Funduszami Sp. z o.o.
Warsaw
80.10%
144 565
1 146 462
Warsaw
80.10%
125 951
455 409
Warsaw
100.00%
10 027
10 034
Indirect subsidiaries – subsidiaries of BPH PBK Zarządzanie Funduszami Sp. z o.o
BPH Towarzystwo
Funduszy Inwestycyjnych
SA
Polish Commission for Banking Supervision to merge all
the activities in the Polish territory directly within
UniCredit. As a result, UniCredit directly holds 20 397 585
Indirect subsidiaries – subsidiaries of BPH PBK Leasing SA
BPH Leasing SA
for EUR 4.3 billion. The transfer of Bank BPH shares was
Bank BPH shares which account for 71.03% of equity and
confer 71.03% of all votes at the Bank’s GSM.
9.1 Information on the integration of Bank BPH
and Pekao S.A.
Warsaw
50.148%
83 679
105 189
Final Holding Sp. z o.o.
Warsaw
100.00%
51 316
51 338
BPH SA with Bank Pekao S.A. in a way of Bank BPH
Centrum Usług Księgowych
Sp. z o.o.
Krakow
100.00%
104
160
SA’s spin-off by transfer of a part of its property in a form
PBK Property Sp. z o.o.
Warsaw
100.00%
12 596
13 046
Centrum Bankowości
Bezpośredniej Sp. z o.o.
of an organized part of enterprise to Bank Pekao S.A., in
Krakow
98.00%
6 368
8 707
exchange of shares of Bank Pekao S.A., which will be
BPH Real Estate SA
Warsaw
100.00%
15 906
16 096
taken up by the shareholders of Bank BPH SA.
42 769
76 568
On 15 of Nov. 2006, the Supervisory Board of Bank BPH
On 12 Nov. 2006 the Management Board of Bank BPH
SA passed a resolution on the intention to integrate Bank
Unconsolidated subsidiaries
Indirect subsidiaries – subsidiaries of Final Holding Sp. z o. o.
Dąbrowa
Górnicza
Final SA
99.84%
PKBL SA in bankruptcy
Warsaw
84.79%
n/a
n/a
SA have accepted and Management Boards of Bank BPH
Asset SA w liquidation
Warsaw
100.00%
179
183
SA and Bank Pekao S.A. have signed the “Spin-off Plan”.
5 177
17 818
Indirect subsidiaries – subsidiaries of BPH Real Estate SA
Metropolis Sp. z o.o.
Warsaw
100.00%
Indirect subsidiaries – subsidiaries of PBK Property Sp. z o.o
Forum Polskiego Biznesu
„Media” Sp. z o.o.
On 31 Jan. 2007, Bank BPH SA and Bank Pekao S.A.
filed a joint request with the Banking Supervision
Warsaw
100.00%
4 939
23 162
Polish Banking System S.A. in
liquidation
Warsaw
48.90%
n/a
n/a
PPP Budpress Sp. z o.o.
In liquidation
Warsaw
36.20%
n/a
n/a
Bankowe Doradztwo
Podatkowe Sp. z o.o.
Krakow
48.68%
273
497
Affiliated companies of Bank BPH SA
Commission for consent to the spin-off of Bank BPH SA
by transferring part of Bank BPH’s assets to Bank Pekao
S.A. in consideration for shares issued by Pekao to Bank
BPH SA existing shareholders.
At the same time, pursuant to its statement dated 26 Jan.
2007, UniCredit is conducting a transparent, international,
8.1 Equity reduction of the indirect subsidiary:
BPH Towarzystwo Funduszy Inwestycyjnych
In November 2006, a court made the entry of a reduction
of the equity of BPH Investment Fund Company. The
equity of BPH TFI was lowered from PLN 49.9 mln to PLN
23.5 mln. The equity reduction was effected by lowering
the par value of shares from PLN 100 to PLN 47 with the
purpose to cover losses carried forward from previous
competitive process to select an investor that will acquire
its shares in Bank BPH following the completion of the
spin-off from Bank BPH of the portion of the Bank's
business that will be integrated with Bank Pekao.
UniCredit commenced the selection process in the 4
th
quarter of 2006, and potential bidders have already
started their due diligence on Bank BPH.
years. The interest of BPH PBK Zarządzanie Funduszami
After the completion of the spin-off of Bank BPH, which
Sp. z o.o., a wholly owned direct subsidiary of Bank BPH
will take place after the receipt of all relevant consents
SA, in the equity (and GSM votes) of BPH TFI has not
from Polish regulators and corporate bodies, the sale
changed and amounts to 50.14%.
process will be finalized. UniCredit would like to complete
the spin-off by the Q2 2007 and the sale process in the
nd
2 half of 2007.
9
The new BPH will be an excellent platform for growth and
Bank can receive from its majority shareholder –
will guarantee full continuity of all current products and
UniCredit. Putting the rating on rating watch with a
services. A network of 200 outlets with nationwide
negative outlook followed the intention of disposal of a
presence places the bank among the 10 largest financial
part of Bank BPH, regardless of the planned transfer of
institutions in Poland in terms of range.
the majority of the Bank’s liabilities to Bank Pekao, of
which UniCredit is also the majority shareholder. The
9.2 Changes in the Bank’s authorities and
other personnel matters
In recognition of the achievements of Niels Lundorff,
Deputy President of the Bank BPH Management Board,
responsible for Finance Division, and in particular of his
negative outlook shows that the rating can only be
lowered or maintained, but will not be upgraded after the
disposal. The rating was assigned based on data in public
domain.
contribution to the Bank’s development, on 1 Oct. last
On 29 Nov. 2006, Bank BPH was notified by Standard &
year UniCredit Group entrusted him with the Milan-based
Poor’s Ratings Services of the withdrawal of the “BBBpi”
office of the Head of Risk Control and Policy Area within
rating (assigned based on public domain data) of the
the UniCredit Group Risk Division.
Bank. The withdrawal of the rating is linked to the
On 5 Oct. 2006 the Supervisory Board appointed
Grzegorz Piwowar to the position of the Member of the
announcement of the plan to integrate a significant part of
Bank BPH into Bank Pekao.
Bank BPH Management Board in charge of the Retail
Banking Division. The appointment followed a positive
assessment
of
G. Piwowar
by
the
Remuneration
Committee of the Bank Supervisory Board. G. Piwowar,
then still the Managing Director of the Sales Area, took
10. Developments after the quarterly
report date with a potential impact
on future financial performance
over the leadership of the Retail Banking Division after
Wojciech Sobieraj resigned from the post of Deputy
In October, Bank BPH SA entered into preliminary
President of the Management Board.
agreements to sell 1 370 shares it held in Commercial
On 15 Nov. 2006 Mariusz Grendowicz, Deputy President
of the Bank Management Board in charge of the
Corporate Banking and Real Estate Finance Division,
resigned from his office with effect on 30 Nov. 2006. On
the same day, the Bank Supervisory Board accepted
Mariusz
Grendowicz’s
resignation,
appointing
Przemysław Gdański as Deputy President of the Bank
Management Board with effect on 1 Dec. 2006.
EGB
Podstawowy
the GSM of CU PTE, and account for 10% of all GSM
votes and shares. The entry into final share sale
agreements is conditional upon obtaining a permission of
the Polish Financial Supervision Authority for the changes
in the CU PTE shareholding structure resulting from the
planned transactions. The shares will be acquired by the
•
On 15 Dec. 2006, an agreement was made between the
and
WBK SA (“CU PTE”). These shares confer 1 370 votes at
following current shareholders of CU PTE:
9.3 Sale of loan receivables
Bank
Union Powszechne Towarzystwo Emerytalne BPH CU
Niestandaryzowany
1 218 CU PTE shares by AVIVA International
Insurance Ltd., and
•
152 shares of CU PTE by Bank Zachodni WBK S.A.
Sekuratyzacyjny Fundusz Inwestycyjny Zamknięty (a
The price per share is the same under either agreement
close-end securitization fund), represented by the Fund
and amounts to PLN 145 985.40. In total, the block of CU
Manager
PTE shares to be sold is priced at PLN 200 mln.
–
SKARBIEC
Towarzystwo
Funduszy
Inwestycyjnych S.A. to transfer a part of the Bank’s nonperforming loan portfolio. The loans (including the
principal, interest and other side dues) covered by the
agreement totaled PLN 1 038 855 795.11 as of 31 Dec.
2005.
9.4 Rating changes
On 20 Nov. 2006 Fitch Ratings put the support rating (“1”)
for Bank BPH ratings watch with a negative outlook. The
The block of CU PTE shares was priced in the Bank’s
books at its fair value of PLN 200 mln. The difference
between the historic cost of the shares for disposal equal
to PLN 21 mln and the value of PLN 200 mln resulting
from the re-pricing, i.e. PLN 179 mln, has been included
in the Bank’s funds under the revaluation reserve item.
After the transaction is finalized, the amount will be
transferred from the reserve to the Bank’s financial result.
support rating of 1 reflects the potential support that the
10
The obligation to sell the CU PTE shares held by Bank
BPH arises under Art. 37 of the Act on organization and
operation of pension funds, which prescribes that
affiliates can only hold shares of the same general
pension society. Bank BPH and Pekao are controlled by
the same entity, i.e. UniCredit, hence they are affiliated
entities. After closing of the transaction, Bank BPH will
cease to be a shareholder of CU PTE.
13. Information on the Bank’s shares
held by the Management and
Supervisory Boards’ members
Among the Members of the Bank BPH Management
Board, only Mr. Mirosław Boniecki held 131 Bank’s
shares and none of the Supervisory Board Members
possessed the Bank’s shares both as at the end of Q3
and Q4 2006.
11. Factors influencing Bank BPH
Group’s results in next quarter or
beyond
Over at least the following quarter, certain factors may
14. New proceedings before courts
and other public administration
bodies
impact the results of Bank BPH Group:
In Q4 2006, Bank BPH Group was not engaged in any
•
court proceedings, proceedings before the authority
it is forecast that the volume of retail loans on the
market will continue to grow at a fast pace. This is
an opportunity for Bank BPH Group, which currently
nd
has the 2 largest market share of total retail loans;
•
significant pay rises in the economy will support the
further increase of the retail deposit volume, and in
particular of other savings instruments, such as
•
competent
for
arbitration
or
public
administration
authorities, pertaining to obligations or claims of the Bank
or its subsidiary worth at least 10% of the Bank’s
shareholders’ funds, nor in two or more proceedings
pertaining to obligations and claims whose total value
represented at least 10% of the Bank’s own funds.
structured deposit products and assets managed by
It
BPH TFI. As the range of other funds offered by the
proceedings on the so-called interchange fee (collected
Bank expands, further growth in the income from
from settlement agents on credit cards transactions), the
fees and commissions is to be expected;
Office of Competition and Consumer Protection in its
the projected high level of investments in the
decision of 29 Dec. last year imposed a fine on Bank BPH
economy to continue since Q2 2006, will inhibit the
equal to PLN 14.7 mln, out of a total amount of PLN 164
growth of corporate deposits. At the same time, the
mln fine imposed on 20 banks operating in Poland. Bank
high growth of corporate loans will maintain.
BPH has lodged an appeal against this decision and built
is
worthwhile
mentioning
that
after
5-year-long
up a full provision included in the costs of Q4 2006.
12. Shareholders controlling directly
or indirectly 5 per cent or more of
the Bank’s GSM votes
Since disclosure date of the previous quarter’s report (i.e.
14 Nov. last year, Q3 2006 Report) the Bank’s
shareholding structure has not changed and is as follows:
15. Management Board’s position on
actual
performance
against
published annual forecasts
Bank BPH SA’s Management Board published no
forecasts of 2006 financial results.
Bank BPH shareholding structure as at Q4 report’s disclosure date
No.
Shareholder’s name
Shares
Number
1
UniCredito Italiano S.p.A.
2
3
Votes at GSM
%
Number
%
20 397 585
71.03
20 397 585
71.03
State Treasury
1 058 000
3.68
1 058 000
3.68
Other shareholders, incl. The
Bank of New York
7 260 645
25.29
7 260 645
25.29
Total
28 716 230 100.00
28 716 230 100.00
16. Transactions
companies
Transactions
concluded
with
in
Q4
2006
related
with
related
companies were typical and routine, and were performed
The purchase of Bank BPH shares by UniCredit from BACA, which took place in Q4 last year, is described at the
beginning of section 9.
11
at arms’ length.
Transactions with related entities from 1 Jan. – 31 Dec. 2006 (PLN’000)
Dominant
entity
Other Group
companies
Subsidiaries Affiliates
Consolidated
companies
19. Fair value and
financial assets
impairment
of
66 456
12 449 816
1 771
0
292 616
Detailed information on the Bank’s accounting treatment
Forwards and FX
swaps
0
124 323 630
42 828
0
18 309 811
in this respect can be found in section 19 of the
IRS/CIRS
0
16 048 163
0
0
18 385
Comments to Consolidated Q4 2005 Report of Bank BPH
FRA
0
6 835 615
0
0
0
Group and Consolidated Financial Statement for 1H
Options
0
77 909
2 426
0
0
Transactions in
securities
0
518 022
0
0
0
Extended off-balance
sheet guarantee
commitments
0
1 911 280
1 966
0
150
Off-balance financing
commitments granted
0
71 524
16 612
0
928 506
FX transactions
Placements
113 676 999 1 128 642 566
2006.
20. Other developments
0
0
0
In Q4 2006 no new developments appeared in assets,
Loans*
0
36 127
7 132
0
3 769 087
liabilities, funds, net financial results or cash flows, which
Deposits
0
99 498 062
4 124 553
1 021
8 863 893
Securities
0
22 400 505
0
0
5 122 235
Other liabilities
0
186 166
0
0
0
113 743 455 1 412 999 385
4 197 288
1 021
37 304 683
Total
* mainly drawing the credit facility granted in 2005
because of their category, size or impact could be defined
as extraordinary (unusual). Bank BPH Group’s activities
do not contain important phenomena of a seasonal or
cyclic character.
In Dec. last year Bank BPH SA extended a short-term
credit facility up to the total amount of EUR 242 mln (an
equivalent of PLN 928.5 mln) to its subsidiary mortgage
bank, BPH Bank Hipoteczny SA (“BPH BH”), to finance its
current operations. On 30 Jan. 2007, Bank BPH executed
with this entity an annex to the short-term credit facility
agreement, prolonging its maturity until 20 Dec. 2007.
Also in Dec. these two entities entered into an annex to
the agreement to carry out a Program of Debt Securities
Issue for the amount of PLN 300 mln dated 27 March
2003. Thus, the maximum amount of the Program was
raised to PLN 500 mln. The Program calls for multiple
issues of debt securities by BPH BH over 5 years from
the agreement date.
17. Information on loan underwriting
or guarantees
There were no transactions referred to in §91 section 6
point 9 of the Ordinance of 19 Oct. 2005 within Bank BPH
Group.
18. Additional information
Bank BPH SA intends to make an early buy-back of
series I and II Eurobonds worth in total EUR 1 bn, which
were issued within a Program of Eurobond issue. The
early buy-back dates are planned for 26 Feb. and
6 March 2007, respectively.
12
Bank BPH Group
Financial Report
4 quarters
2006
SELECTED FINANCIAL DATA
PLN'000
EUR’000
4 quarters in 4 quarters in 4 quarters in 4 quarters in
accruals
accruals
accruals
accruals
(current year) (current year) (current year) (current year)
from
from
from
from
01.01.2006 to 01.01.2005 to 01.01.2006 to 01.01.2005 to
31.12.2006
31.12.2005
31.12.2006
31.12.2005
I. Interest income
3 392 426
2 983 949
870 054
741 667
II. Fee and commission income
1 655 787
1 294 767
424 659
321 817
III. Operating profit
1 624 382
1 309 581
416 604
325 499
IV. Gross profit (loss)
1 633 586
1 294 445
426 390
335 366
V. Net profit (loss) attributable to equity holders
of the Company
1 267 769
1 027 436
330 907
266 189
VI. Net cash flow from operating activities
-1 331 710
-1 274 222
-341 543
-316 711
VII. Net cash flow from investing activities
-105 674
-463 286
-27 102
-115 151
VIII. Net cash flow from financing activities
1 933 958
1 785 945
496 001
443 901
496 574
48 437
127 356
12 039
64 757 089
57 922 199
16 902 560
15 006 529
200 000
89 403
52 203
23 163
3 910 786
5 489 273
1 020 773
1 422 165
41 438 811
37 304 509
10 816 144
9 664 881
96 296
48 723
25 135
12 623
6 860 855
6 360 856
1 790 785
1 647 976
143 581
143 581
37 477
37 199
28 716 230
28 716 230
28 716 230
28 716 230
XVIII. Book value per share (PLN/EUR)
238.92
221.51
62.36
57.39
XIX. Diluted book value per share (PLN/EUR)
238.92
221.51
62.36
57.39
XX. Capital adequacy ratio
12.09
12.76
12.09
12.76
XXI. Net earnings (loss) per ordinary share
(PLN / EUR)
44.15
35.78
11.52
9.27
XXII. Diluted net earnings (loss) per ordinary
share (PLN / EUR)
44.15
35.78
11.52
9.27
XXIII. Dividend paid per ordinary share (PLN /
EUR)
30.00
22.10
7.83
5.73
IX. Total net cash flow
X. Total assets
XI. Amounts owed to the central bank
XII. Amounts owed to banks
XIII. Amounts owed to customers
XIV. Minority interests
XV. Shareholders' equity
XVI. Share capital
XVII. Number of shares
Individual positions of the consolidated financial statement of Bank BPH SA were converted into EURO according
to the following principles:
−
Selected consolidated balance positions and book value per share – translated using the average EURO
exchange rate in PLN announced by the Central Bank on the balance sheet day: 31.12.2006 – 3.8312;
31.12.2005 – 3.8598.
−
Selected consolidated profit and loss account amounts and consolidated cash flow statement –
translated using the average rate of exchange, which is an arithmetic mean of the average rates announced by
the Central Bank and at the end of each month of three quarters; 2006 – 3.8991, 2005 – 4.0233.
Bank BPH Group Financial Report – 4Qs 2006
2/26
INTERIM FINANCIAL STATEMENTS OF THE BANK BPH
GROUP
INCOME STATEMENT OF THE BANK BPH GROUP FOR THE 4 QUARTERS OF 2006
PLN’000
4 guarters in
accruals
4th quarter
Notes
Interest income
Interest expenses
4 guarters in
accruals
4th quarter
1 October
2006 –
31 Decem.
2006
1 Jan. 2006 31 Decem.
2006
1 October
2005 31 Decem.
2005
1 Jan. 2005 31 Decem.
2005
894 560
3 392 426
765 196
2 983 949
-341 487
-1 216 960
-258 512
-1 002 528
Net interest income
2
553 073
2 175 466
506 684
1 981 421
Impairment charges
3
-18 697
-220 226
-59 223
-255 469
Net interest income after impairment
charges
534 376
1 955 240
447 461
1 725 952
Fee and commission income
444 163
1 655 787
360 032
1 294 767
Fee and commission expenses
-85 413
-306 302
-71 877
-271 808
Net fee and commission income
4
358 750
1 349 485
288 155
1 022 959
Net trading result
5
-7 394
-6 829
24 797
79 346
General administrative expenses
6
-403 277
-1 619 112
-364 794
-1 534 516
Other operating income and expenses
7
-29 120
-54 402
8 086
15 840
453 335
1 624 382
403 705
1 309 581
6 686
15 503
-9 390
196
0
0
0
-10 950
-1 542
-6 299
-1 081
-4 382
Profit from ordinary activities
458 479
1 633 586
393 234
1 294 445
Income tax
-96 271
-330 962
-78 257
-263 082
Profit for the period:
362 208
1 302 624
314 977
1 031 363
1. Attributable to equity holders of the
Company
350 661
1 267 769
311 060
1 027 436
11 547
34 855
3 917
3 927
Operating profit
Net income from investments
8
Goodwill impairment
Result on other income and expenses
2. Attributable to minority interest
Net income (in PLN)
Weighted average number of ordinary shares
Earnings per ordinary share (in PLN)
Weighted average diluted number of ordinary shares
Diluted earnings (loss) per ordinary share (in PLN)
1 267 769 000
1 027 436 000
28 716 230
28 716 230
44.15
35.78
28 716 230
28 716 230
44.15
35.78
3/26
INCOME STATEMENT OF THE BANK BPH GROUP FOR THE 4 QUARTERS OF 2006
PLN’000
By quarter
Q4 2006
Q3 2006
Q2 2006
Q1 2006
Q4 2005
Q3 2005
Q2 2005
Q1 2005
Interest income
894 560
859 608
841 304
796 954
765 196
737 201
755 754
725 798
-341 487
-304 410
-293 828
-277 235
-258 512
-230 074
-262 694
-251 248
Net interest income
553 073
555 198
547 476
519 719
506 684
507 127
493 060
474 550
Impairment charges
-18 697
-64 204
-67 095
-70 230
-59 223
-61 161
-55 105
-79 980
Net interest income
after impairment
charges
534 376
490 994
480 381
449 489
447 461
445 966
437 955
394 570
Fee and commission
income
444 163
402 882
417 381
391 361
360 032
326 471
321 594
286 670
Fee and commission
expenses
-85 413
-73 089
-72 127
-75 673
-71 877
-62 646
-80 715
-56 570
Net fee and
commission income
358 750
329 793
345 254
315 688
288 155
263 825
240 879
230 100
-7 394
-9 584
1 830
8 319
24 797
7 277
21 262
26 010
General administrative
expenses
-403 277
-406 228
-402 910
-406 697
-364 794
-385 028
-381 156
-403 538
Other operating income
and expenses
-29 120
-20 248
511
-5 545
8 086
-9 259
12 937
4 076
Operating profit
453 335
384 727
425 066
361 254
403 705
322 781
331 877
251 218
Net income from
investments
6 686
25 024
-19 298
3 091
-9 390
1 548
-3 041
11 079
0
0
0
0
0
0
-5 592
-5 358
-1 542
-1 688
-1 991
-1 078
-1 081
-1 095
-1 094
-1 112
Profit from ordinary
activities
458 479
408 063
403 777
363 267
393 234
323 234
322 150
255 827
Income tax
-96 271
-93 296
-69 761
-71 634
-78 257
-61 849
-72 599
-50 377
Minority interests
-11 547
-6 396
-9 859
-7 053
-3 917
-4
-3
-3
Net income
350 661
308 371
324 157
284 580
311 060
261 381
249 548
205 447
Interest expenses
Net trading result
Goodwill impairment
Result on other income
and expenses
Due to the changes in the recognition of Fair Value Option of derivatives, which occurred in Bank BPH 2005 Annual Report, the
above table presents comparable data for particular quarters of 2005 and 2006.
4/26
CONSOLIDATED BALANCE SHEET
PLN’000
Assets
Notes
As at 31 Dec.
2006
As at 30 Sept.
2006
As at 31 Dec.
2005
As at 30 Sept.
2005
Cash and balances with the
central bank
9
2 242 832
1 695 571
1 746 258
2 712 735
Trading assets
10
2 909 319
2 567 032
2 405 687
2 219 583
Loans and advances to, and
placements with banks
11
8 656 912
12 954 334
11 841 741
12 817 180
incl.: loan impairment
13
-365
-589
-891
-3
Loans and advances to
customers
12
35 594 340
35 505 475
31 858 225
31 053 457
incl.: loan impairment
13a
-1 365 514
-1 389 527
-1 748 947
-1 837 115
Other financial assets
14
13 025 985
10 283 833
8 006 413
10 246 258
Property and equipment
15
938 826
944 221
979 138
913 986
Intangible assets
16
294 802
291 049
321 172
294 148
Assets of disposal group
classifield as held for sale
209 517
239 370
0
0
Other assets
884 556
926 139
763 565
883 199
incl.: deferred tax assets
Total assets
600 569
565 859
572 446
629 355
64 757 089
65 407 024
57 922 199
61 140 546
As at 31 Dec.
2006
As at 30 Sept.
2006
PLN’000
Liabilities
Notes
Amounts owed to the central
bank
200 000
94 181
As at 31 Dec.
2005
As at 30 Sept.
2005
89 403
87 810
Amounts owed to banks
17
3 910 786
8 401 968
5 489 273
10 043 549
Amounts owed to customers
18
41 438 811
38 649 814
37 304 509
37 060 640
Liabilities evidenced by
certificates
19
8 799 123
8 773 319
5 549 250
4 329 442
Provisions
20
674 186
585 983
652 806
626 365
549 405
485 889
534 989
569 457
inc.: deferred Income tax
provision
Trading liabilities
1 351 770
1 155 355
1 242 839
1 764 410
Other liabilities
1 425 262
1 218 683
1 184 540
1 102 942
Total Equity:
6 957 151
6 527 721
6 409 579
6 125 388
96 296
84 749
48 723
136
6 860 855
6 442 972
6 360 856
6 125 252
64 757 089
65 407 024
57 922 199
61 140 546
12.09
11.63
12.76
13.09
6 860 855 000
6 442 972 000
6 360 856 000
6 125 252 000
28 716 230
28 716 230
28 716 230
28 716 230
238.92
224.37
221.51
213.30
28 716 230
28 716 230
28 716 230
28 716 230
238.92
224.37
221.51
213.30
21
incl. :minority interests
incl.: shareholders’ equity
Total liabilities and shareholders'
equity
Capital adequacy ratio
Book value (in PLN)
Number of shares
Book value per share (in PLN)
Diluted number of shares
Diluted book value per share (in PLN)
5/26
STATEMENT OF CHANGES IN CONSOLIDATED SHAREHOLDERS' EQUITY
PLN’000
MINORITY
INTERESTS
Equity attributable to equity holders of the Bank
TOTAL
SHAREHO
LDERS'
EQUITY
OTHER
RESERVES
REVALUATI
ON
RESERVE
143 581
4 855 184
260 166
1 101 925
6 360 856
48 723
6 409 579
0
0
0
2 303
2 303
12 297
14 600
143 581
4 855 184
260 166
1 104 228
6 363 159
61 020
6 424 179
Increases due to
revaluation of securities
available for sale (net of
tax)
0
0
149 969
0
149 969
0
149 969
Net income on sale of
securities available for sale
0
0
-869
0
-869
0
-869
Net income of hedging
derivatives (net of tax)
0
0
-59 370
0
-59 370
0
-59 370
Divestment of fixed assets
0
0
-45 168
45 168
0
0
0
Other increases/decreases
0
0
0
1 694
1 694
421
2 115
Fx differences from
recalculation
0
0
5
0
5
0
5
Net income
0
0
0
1 267 769
1 267 769
0
1 267 769
Share of net profit
0
0
0
0
0
34 855
34 855
143 581
4 855 184
304 733
2 418 859
7 722 357
96 296
7 818 653
-861 502
0
-861 502
0
0
0
0
0
0
0
0
0
SHARE
CAPITAL
Opening balance of
shareholders' equity on 1
January 2006
Funduszami and BPH TFI
S.A. consolidation
adjustment
Opening balance of
January 2006
Total income in 2006
Payment of 2005 dividend
0
SHAREHOLD
ERS' EQUITY
0
0
-861 502
16 210
0
-16 210
106 464
0
-106 464
-104 633
0
104 633
0
22 000
0
-22 000
0
0
0
0
1 654
0
-1 654
0
0
0
143 581
4 896 879
304 733
1 515 662
6 860 855
96 296
6 957 151
Charge for supplementary
capital
0
General risk fund charge
0
Changes of accounting
policies
0
Brokerage fund charge
Other
Closing balance on 31
Decemberr 2006
RETAINED
PROFITS
6/26
PLN’000
MINORITY
INTERESTS
TOTAL
SHAREHO
LDERS'
EQUITY
OTHER
RESERVES
REVALUATI
ON
RESERVE
143 581
4 855 184
260 166
1 101 925
6 360 856
48 723
6 409 579
0
0
0
2 303
2 303
12 297
14 600
143 581
4 855 184
260 166
1 104 228
6 363 159
61 020
6 424 179
Increases due to
tax)
0
0
142 955
0
142 955
0
142 955
securities available for sale
0
0
-1 075
0
-1 075
0
-1 075
0
0
-119 430
0
-119 430
0
-119 430
0
0
-139
139
0
0
0
Other increases/decreases
0
0
0
1 695
1 695
421
2 116
Fx differences from
recalculation
0
0
62
0
62
0
62
Net income
0
0
0
917 108
917 108
0
917 108
Share of net profit
0
0
0
0
0
23 308
23 308
143 581
4 855 184
282 539
2 023 170
7 304 474
84 749
7 389 223
-861 502
0
-861 502
0
0
0
0
0
0
0
0
0
SHARE
CAPITAL
Opening balance of
January 2006
Funduszami and BPH TFI
S.A. consolidation
adjustment
Opening balance of
January 2006
Total income in 2006
0
SHAREHOLD
ERS' EQUITY
0
0
-861 502
15 006
0
-15 006
106 464
0
-106 464
-104 633
0
104 633
0
22 000
0
-22 000
0
0
0
0
440
0
-440
0
0
0
143 581
4 894 461
282 539
1 122 391
6 442 972
84 749
6 527 721
capital
0
0
Changes of accounting
policies
0
Other
September 2006
RETAINED
PROFITS
7/26
PLN’000
MINORITY
INTERESTS
SHARE
CAPITAL
OTHER
RESERVES
REVALUATI
ON
RESERVE
RETAINED
PROFITS
TOTAL
SHAREHO
LDERS'
EQUITY
SHAREHOLD
ERS' EQUITY
Opening balance of
shareholders' equity on
1 January 2005
143 581
4 699 533
148 199
847 779
5 839 092
126
5 839 218
BPH PBK Leasing S.A.
consolidation adjustment
0
2 949
0
13 149
16 098
3 911
20 009
Opening balance of
1 January 2005
143 581
4 702 482
148 199
860 928
5 855 190
4 037
5 859 227
Increases due to
tax)
0
0
12 320
0
12 320
0
12 320
securities available for
sale
0
0
-13 528
0
-13 528
0
-13 528
0
0
112 767
0
112 767
0
112 767
Other
increases/decreases
0
0
408
0
408
0
408
Net income
0
0
0
1 027 436
1 027 436
0
1 027 436
Share of net profit
0
0
0
0
0
16
16
Shares sold of BPH PBK
Leasing SA
0
0
0
0
0
44 670
44 670
TOTAL INCOME IN 2005
143 581
4 702 482
260 166
1 888 364
6 994 593
48 723
7 043 316
0
0
0
-634 643
-634 643
0
-634 643
0
137 547
0
-137 547
0
0
0
capital
0
15 155
0
-15 155
0
0
0
Other
0
0
0
906
906
0
906
143 581
4 855 184
260 166
1 101 925
6 360 856
48 723
6 409 579
December 2005
8/26
PLN’000
SHARE
CAPITAL
OTHER
RESERVES
REVALUATI
ON
RESERVE
RETAINED
PROFITS
MINORITY
INTERESTS
TOTAL
SHAREHOL
DERS'
EQUITY
SHAREHOLD
ERS' EQUITY
Opening balance of
1 January 2005
143 581
4 699 533
148 199
847 779
5 839 092
126
5 839 218
BPH PBK Leasing S.A.
consolidation adjustment
0
2 949
0
13 149
16 098
3 911
20 009
Opening balance of
1 January 2005
143 581
4 702 482
148 199
860 928
5 855 190
4 037
5 859 227
0
0
18 461
0
18 461
0
18 461
0
0
183 636
0
183 636
0
183 636
securities available for
sale
0
0
-13 769
0
-13 769
0
-13 769
Other
increases /decreases
0
0
0
-13
-13
-3 911
-3 924
Net income
0
0
0
716 376
716 376
0
716 376
Share of net profit
0
0
0
0
0
10
10
143 581
4 702 482
336 527
1 577 291
6 759 881
136
6 760 017
0
20 619
0
-655 248
-634 629
0
-634 629
0
137 547
0
-137 547
0
0
0
Other
0
15 154
0
-15 154
0
0
0
143 581
4 875 802
336 527
769 342
6 125 252
136
6 125 388
Increases due to
tax)
September 2005
9/26
CONSOLIDATED CASH FLOW STATEMENT
PLN’000
4th quarter
4 guarters in
accruals
4th quarter
4 guarters in
accruals
1 Oct. 2006 31 Dec. 2006
1 Jan. 2006 31 Dec. 2006
1 Oct. 2005 31 Dec. 2005
1 Jan. 2005 31 Dec. 2005
I. Net cash flow from operating activities
- indirect method
589 897
-1 331 710
-1 733 486
-1 274 222
II. Net cash flow from investing activities
-82 583
-105 674
-205 417
-463 286
III. Net cash flow from financing activities
39 947
1 933 958
972 426
1 785 945
547 261
496 574
-966 477
48 437
IV. Total net cash flow
10/26
NOTES TO THE QUARTERLY FINANCIAL STATEMENTSOF
THE BANK BPH GROUP
(1) Changes in respect of consolidated companies in Q4 2005
In the presented statements of Bank BPH Group, the BPH Bank Hipoteczny SA subsidiary, BPH Finance plc.,
BPH PBK Leasing SA and BPH PBK Zarządzanie Funduszami S.A. were consolidated using full method.
The remaining companies were not consolidated on the materiality principle (IAS 1).
Impact of the incorporation of leasing companies on the results for four quarters of 2006 were
presented in the table below:
PLN’000
CONSOLIDATED PROFIT AND LOSS ACCOUNT FOR FOUR
QUARTERS OF 2006
Interest income
BPH PBK
Zarządzanie
Funduszami with
BPH TFI
Bank BPH Group
3 392 426
2 056
Interest expenses
-1 216 960
-83
Net interest income
2 175 466
1 973
Impairment charges
-220 226
0
1 955 240
1 973
1 655 787
200 976
-306 302
-104 682
1 349 485
96 294
-6 829
0
-1 619 112
-23 735
-54 402
-299
1 624 382
74 233
15 503
0
0
0
-6 299
-2 115
1 633 586
72 118
-330 962
-13 154
-34 855
-
1 267 769
58 964
Net interest income after impairment charges
Net trading result
Other operating income and expenses
Operating profit
Goodwill impairment
Result on other income and expenses
Income tax
Minority interests
Net income
11/26
PLN’000
(2) NET INTEREST INCOME
Interest income from:
loans and money market transactions
dividends
other
Interest expenses for:
deposits, loans received and money market
transactions
other
Result from leasing transactions
income
expenses
NET INTEREST INCOME
1 Oct. 2006 31 Dec. 2006
1 Jan. 2006 31 Dec. 2006
1 Oct. 2005 31 Dec. 2005
1 Jan. 2005 31 Dec. 2005
854 960
3 258 546
730 913
2 873 270
720 567
2 818 182
644 452
2 427 606
0
16 898
0
14 371
134 393
423 466
86 461
431 293
-326 813
-1 166 190
-242 153
-953 836
-303 972
-1 066 766
-247 847
-881 565
-22 841
-99 424
5 694
-72 271
24 926
83 110
17 924
61 987
39 600
133 880
34 283
110 679
-14 674
-50 770
-16 359
-48 692
553 073
2 175 466
506 684
1 981 421
PLN’000
(3) LOSSES ON LOANS AND ADVANCES
1 Oct. 2006 31 Dec. 2006
1 Jan. 2006 31 Dec. 2006
1 Oct. 2005 31 Dec. 2005
1 Jan. 2005 31 Dec. 2005
Allocations to
-218 118
-810 941
-317 387
-1 260 568
provisions for loans and advances
-214 324
-805 919
-310 961
-1 231 857
provisions for contingent liabilities
-3 794
-5 022
-6 426
-28 711
Releases from
199 421
590 715
258 164
1 005 099
provisions for loans and advances
198 032
578 374
248 586
970 600
provisions for contingent liabilities
1 389
12 341
9 578
34 499
-18 697
-220 226
-59 223
-255 469
NET CHARGE FOR LOSSES ON LOANS AND
ADVANCES
PLN’000
(4) NET FEE AND COMMISSION INCOME
Income from:
1 Oct. 2006 31 Dec. 2006
1 Jan. 2006 31 Dec. 2006
1 Oct. 2005 31 Dec. 2005
1 Jan. 2005 31 Dec. 2005
444 163
1 655 787
360 032
1 294 767
securities and custodian business
53 698
143 817
27 709
93 558
loans and advances
43 791
168 382
41 076
179 356
domestic payments
178 898
678 442
164 541
589 972
international payments
107 328
454 643
115 286
400 723
60 448
210 503
11 420
31 158
-85 413
-306 302
-71 877
-271 808
securities and custodian business
-8 153
-23 368
-5 208
-18 110
loans and advances
-4 823
-20 760
-5 056
-21 676
domestic payments
-53 298
-191 556
-49 076
-192 417
-6 769
-21 732
-5 217
-16 943
-12 370
-48 886
-7 320
-22 662
358 750
1 349 485
288 155
1 022 959
other
Expenses of:
international payments
other
NET FEE AND COMMISSION INCOME
12/26
PLN’000
(5) NET TRADING RESULT
1 Oct. 2006 31 Dec. 2006
Result on equity instruments
274
549
192
20
53 578
197 839
98 316
232 968
-61 246
-205 217
-73 711
-153 642
-7 394
-6 829
24 797
79 346
Result on fixed income instruments
Exchange gain (loss)
NET TRADING RESULT
1 Jan. 2006 31 Dec. 2006
1 Oct. 2005 31 Dec. 2005
1 Jan. 2005 31 Dec. 2005
PLN’000
(6) GENERAL ADMINISTRATIVE EXPENSES
1 Oct. 2006 31 Dec. 2006
1 Jan. 2006 31 Dec. 2006
1 Oct. 2005 31 Dec. 2005
1 Jan. 2005 31 Dec. 2005
Salaries and employee benefits
-208 513
-829 065
-213 037
-762 183
Building maintenance and rents
-48 508
-197 879
-35 516
-209 579
Other expenses
-90 979
-384 428
-76 746
-356 564
Depreciation
-55 277
-207 740
-39 495
-206 190
-403 277
-1 619 112
-364 794
-1 534 516
GENERAL ADMINISTRATIVE EXPENSES
PLN’000
(7) BALANCE OF OTHER OPERATING INCOME
AND EXPENSES
1 Oct. 2006 31 Dec. 2006
1 Jan. 2006 31 Dec. 2006
1 Oct. 2005 31 Dec. 2005
1 Jan. 2005 31 Dec. 2005
20 139
63 626
38 722
121 192
Other operating expenses
-49 259
-118 028
-30 636
-105 352
BALANCE OF OTHER OPERATING INCOME
AND EXPENSES
-29 120
-54 402
8 086
15 840
PLN’000
(8) NET INCOME FROM INVESTMENTS
1 Oct. 2006 31 Dec. 2006
1 Jan. 2006 31 Dec. 2006
1 Oct. 2005 31 Dec. 2005
1 Jan. 2005 31 Dec. 2005
Profit on sales of available for sale portfolio
0
1 510
1 215
15 959
Loss on sales of available for sale portfolio
-210
-536
-254
-787
0
16 668
2 707
-32 016
Net income from portfolio priced at fair value, with
pricing effect recognised in the income statement
(FVO)
6 896
-2 139
-13 058
17 040
NET INCOME FROM INVESTMENTS
6 686
15 503
-9 390
196
Net income from equity investments
13/26
DETAILED DATA - BALANCE SHEET
PLN’000
(9) CASH AND BALANCES WITH THE
CENTRAL BANK
Cash
Balances with the central bank
Debt securities and bills issued by the State
Treasury and other public issuers eligible for
discounting at the Central Bank
T-bills
BOE eligible for rediscounting
CASH AND BALANCES WITH THE CENTRAL
BANK
As at 31 Dec.
2006
As at 30 Sept.
2006
As at 31 Dec.
2005
As at 30 Sept.
2005
930 808
724 176
918 921
804 766
1 285 954
946 666
777 617
1 880 145
26 070
24 729
49 720
27 824
0
0
19 818
0
26 070
24 729
29 902
27 824
2 242 832
1 695 571
1 746 258
2 712 735
As at 31 Dec.
2006
As at 30 Sept.
2006
PLN’000
(10) TRADING ASSETS
Debt securities and other fixed-income
securities
Bonds
T-bills
eurobonds
Other
Positive fair value of derivatives
Positive market value of derivates offsetting
FVO portfolio of securites
TRADING ASSETS
As at 31 Dec.
2005
As at 30 Sept.
2005
1 471 448
1 293 180
936 238
686 803
447 750
683 015
331 327
414 344
0
487
0
0
145 207
147 784
169 721
177 839
878 491
461 894
435 190
94 620
1 328 694
1 140 808
1 335 616
1 378 310
109 177
133 044
133 833
154 470
2 909 319
2 567 032
2 405 687
2 219 583
PLN’000
(11) LOANS AND ADVANCES TO, AND
PLACEMENTS WITH BANKS BY TYPE
As at 31 Dec.
2006
As at 30 Sept.
2006
7 870 473
12 392 517
11 372 467
11 965 640
Loans and advances
280 420
199 110
145 659
283 303
Other including
487 681
338 552
297 250
542 175
193 929
179 582
143 230
93 741
5 046
12 782
9 480
10 515
Money market placements
current accounts
accounts for special purpose funds
sell buy-back securities
As at 31 Dec.
2005
As at 30 Sept.
2005
155 192
12 614
61 199
405 962
loans and advances - under cash collateral
30 266
21 511
0
0
received but not booked loans and advances
with banks
100 620
110 081
72 565
31 957
other
2 628
1 982
10 776
0
8 638 574
12 930 179
11 815 376
12 791 118
Value adjustment
-534
-133
-78
-37
Discount on purchased loans
-213
-170
-607
0
19 450
25 047
27 941
26 102
-365
-589
-891
-3
8 656 912
12 954 334
11 841 741
12 817 180
Gross total
Interest
Loan loss provision
LOANS AND ADVANCES TO, AND
PLACEMENTS WITH BANKS
14/26
PLN’000
(12) LOANS AND ADVANCES TO
CUSTOMERS BY TYPE
Deposits
Loans and advances:
from financial institutions
from non-financial institutions
from government institutions
Other:
received but not booked loans and advances to
customers
other
Financial lease receivables
GROSS TOTAL
Value adjustment
Discount on purchased loans
Interest
As at 31 Dec.
2006
As at 30 Sept.
2006
As at 31 Dec.
2005
As at 30 Sept.
2005
17 779
11 720
22 077
5 982
35 127 120
35 218 976
32 151 617
31 601 004
1 537 764
1 019 285
683 996
724 079
32 732 461
32 517 500
29 827 906
28 940 471
856 895
1 682 191
1 639 715
1 936 454
210 200
155 521
85 876
87 010
102 215
39 045
0
501
95 656
104 965
74 192
70 002
12 329
11 511
11 684
16 507
1 582 008
1 495 422
1 348 504
1 204 272
36 937 107
36 881 639
33 608 074
32 898 268
-101 179
-113 625
-113 239
-106 345
-4 069
-2 939
-4 969
-3 004
127 995
129 927
117 306
101 653
Loan loss provision
-1 365 514
-1 389 527
-1 748 947
-1 837 115
LOANS AND ADVANCES TO CUSTOMERS
35 594 340
35 505 475
31 858 225
31 053 457
PLN’000
(13) IMPAIRMENT CHARGES FOR
BANKS
Opening balance
As at 31 Dec.
2006
As at 30 Sept.
2006
As at 31 Dec.
2005
As at 30 Sept.
2005
891
891
1
1
allocations to loan loss provisions
0
0
0
1
release of loan loss provisions
0
0
0
0
use
0
0
0
0
revaluation
0
0
1
1
-536
-302
889
0
365
589
891
3
other
CLOSING BALANCE OF LOAN LOSS
PROVISIONS
PLN’000
13a) IMPAIRMENT CHARGES FOR
CUSTOMERS
Opening balance
As at 31 Dec.
2006
As at 30 Sept.
2006
As at 31 Dec.
2005
As at 30 Sept.
2005
1 748 947
1 748 947
1 776 469
1 776 469
0
0
41 198
41 198
1 748 947
1 748 947
1 817 667
1 817 667
758 310
592 267
1 231 962
939 635
release of loan loss provisions
-491 101
-355 498
-933 990
-715 547
use
BPH PBK Leasing S.A. consolidation adjustment
Opening balance
allocations to loan loss provisions
-638 903
-445 038
-341 249
-233 180
revaluation
-9 917
5 897
21 546
26 331
other
-1 822
-157 048
-46 989
2 209
1 365 514
1 389 527
1 748 947
1 837 115
CLOSING BALANCE OF LOAN LOSS
PROVISIONS
15/26
PLN’000
(14) OTHER FINANCIAL ASSETS
As at 31 Dec.
2006
As at 30 Sept.
2006
As at 31 Dec.
2005
As at 30 Sept.
2005
Assets available for sale
1 566 341
1 567 380
1 536 594
1 683 701
Debt:
1 471 542
1 482 159
1 418 739
1 441 760
1 417 249
1 433 412
1 339 512
1 330 952
24 878
24 623
79 227
110 808
bonds
Treasury bills
money market bills
4 996
0
0
0
24 419
24 124
0
0
94 799
85 221
117 855
241 941
shares
10 819
14 487
117 555
163 030
interests
83 980
70 734
300
78 911
0
10 508
15 348
15 959
bonds
0
10 508
15 348
15 959
Treasury bills
0
0
0
0
11 054 288
8 412 883
5 949 931
7 917 687
4 811 115
4 471 835
4 363 881
3 632 775
50 125
73 931
830 685
1 124 180
others
Equity instruments by type
Assets held to maturity
Non-marketable securities at fair value reported
in the income statement (FVO)
bonds
Treasury bills
eurobonds
88 176
92 071
33 783
34 397
6 088 535
3 758 565
685 821
3 059 744
other
16 337
16 481
35 761
66 591
Other
405 356
293 062
504 540
628 911
13 025 985
10 283 833
8 006 413
10 246 258
money market bills
OTHER FINANCIAL ASSETS
PLN’000
As at 30 Sept.
2006
As at 31 Dec.
2005
As at 30 Sept.
2005
20 334
20 336
22 734
19 880
Buildings, premises
495 541
583 784
502 288
492 075
Other property and equipment
343 991
214 267
305 965
281 529
78 960
125 834
148 151
120 502
938 826
944 221
979 138
913 986
(15) PROPERTY AND EQUIPMENT BY TYPE
Land
Property and equipment under construction
PROPERTY AND EQUIPMENT
As at 31 Dec.
2006
PLN’000
(16) INTANGIBLE ASSETS BY TYPE
As at 31 Dec.
2006
As at 30 Sept.
2006
As at 31 Dec.
2005
As at 30 Sept.
2005
Goodwill
162 219
162 219
162 219
162 219
Other intangible assets
132 583
128 830
158 953
131 929
INTANGIBLE ASSETS
294 802
291 049
321 172
294 148
16/26
PLN’000
As at 30 Sept.
2006
As at 31 Dec.
2005
As at 30 Sept.
2005
339 857
106 486
365 337
53 599
Money market placements
1 549 944
4 469 275
2 924 733
7 435 212
Loans and advances received
1 659 294
1 730 916
1 960 439
2 088 931
367 043
2 091 837
239 187
666 163
amounts owed under cash collateral
151 629
116 539
135 372
4 275
accounts for special purpose funds
16 623
16 103
9 260
5 327
101 800
1 958 663
93 152
655 469
96 991
532
1 403
1 092
3 916 138
8 398 514
5 489 696
10 243 905
-14 329
-14 818
-13 146
-213 639
8 977
18 272
12 723
13 283
3 910 786
8 401 968
5 489 273
10 043 549
(17) AMOUNTS OWED TO BANKS BY TYPE
Account balances
Other:
Other
TOTAL
Value adjustment
Interest
TOTAL AMOUNTS OWED TO BANKS
As at 31 Dec.
2006
PLN’000
(18) AMOUNTS OWED TO CUSTOMERS BY
TYPE
As at 31 Dec.
2006
As at 30 Sept.
2006
As at 31 Dec.
2005
As at 30 Sept.
2005
Account balances
15 285 906
12 867 520
10 893 621
9 594 762
Deposits
24 064 448
22 884 962
22 814 185
24 101 455
14 975
138 269
165 042
244 250
2 014 909
2 673 331
3 335 637
3 025 779
803 203
1 699 731
2 282 649
2 167 772
amounts owed under cash collateral
456 305
495 845
565 343
383 851
Other
755 401
477 755
487 645
474 156
41 380 238
38 564 082
37 208 485
36 966 246
-172
474
161
-24 550
58 745
85 258
95 863
118 944
41 438 811
38 649 814
37 304 509
37 060 640
Loans and advances received
Other:
GROSS TOTAL
Value adjustment
Interest
TOTAL AMOUNTS OWED TO CUSTOMERS
PLN’000
(19) LIABILITIES EVIDENCED BY
CERTIFICATES
As at 31 Dec.
2006
As at 30 Sept.
2006
As at 31 Dec.
2005
As at 30 Sept.
2005
Bonds
6 272 546
6 512 656
4 568 119
4 009 071
Certificates
1 972 292
1 668 577
580 268
134 010
590 000
641 139
408 203
173 552
-4 980
-4 417
-3 589
-3 475
Discount
-60 054
-71 478
-18 436
-11 697
Interest
29 319
26 842
14 685
27 981
8 799 123
8 773 319
5 549 250
4 329 442
Other
Value adjustment
TOTAL LIABILITIES EVIDENCED BY
CERTIFICATES
17/26
PLN’000
As at 31 Dec.
2006
As at 30 Sept.
2006
As at 31 Dec.
2005
549 405
485 889
534 989
569 457
33 316
23 950
24 393
19 983
0
193
7 947
7 974
Provision for leaves
22 572
22 212
20 465
5 990
Provisions for contingent liabilities
59 753
52 533
57 209
13 647
9 140
1 206
7 803
9 314
674 186
585 983
652 806
626 365
(20) PROVISIONS
Provisions for income taxes
Provisions for retirement benefits and similar
obligations
Provision for restructuring costs
Other
TOTAL PROVISIONS
As at 30 Sept.
2005
PLN’000
As at 31 Dec.
2006
As at 30 Sept.
2006
As at 31 Dec.
2005
1 050 431
1 013 330
1 036 875
1 276 250
Liabilities from short sales
153 135
12 588
40 766
318 146
Negative fair value of derivatives offsetting portfolio
of FVO seciurities
148 204
129 437
165 198
170 014
1 351 770
1 155 355
1 242 839
1 764 410
(21) TRADING LIABILITIES
Negative fair values of derivatives
TOTAL TRADING LIABILITIES
As at 30 Sept.
2005
PLN’000
As at 30 Sept.
2006
As at 31 Dec.
2005
29 731 239
35 889 223
24 585 977
26 586 014
17 017 994
19 788 750
13 685 703
15 074 055
a) financing
15 280 644
17 404 636
12 031 413
13 288 007
b) guarantee
1 734 350
2 384 114
1 654 290
1 786 048
12 716 245
16 100 473
10 900 274
11 511 959
739 679
4 326 627
1 484 344
2 421 078
11 976 566
11 773 846
9 415 930
9 090 881
81 312 751
91 882 141
67 558 624
78 420 408
338 097 714
349 968 055
266 984 697
177 930 636
802 109
40 644
149 392
259 483
securities received as guarantees and other
collateral deducted from risk-weighed assets
4 963 249
5 262 149
5 652 794
6 275 300
transactions in securities
1 083 781
1 847 725
454 053
2 800 240
331 248 575
342 817 537
260 728 458
168 595 613
449 0141 704
477 739 419
359 129 298
282 937 058
(22) CONTINGENT LIABILITIES
I. Contingent liabilities granted and received
1. Contingent liabilities granted:
2. Contingent liabilities received:
c) Financing
d) Guarantee
II. Contingent liabilities under buy/sell
transactions
III. Other
securities issued as guarantees
liabilities under transactions in securities
TOTAL CONTINGENT LIABILITIES
As at 31 Dec.
2006
As at 30 Sept.
2005
18/26
PLN’000
Segments
(23) Segment reporting
Retail
CONSOLIDATED INCOME
STATEMENT
2
Corporate
3
International
markets*
4
Other (not
allocated to
segments)
5
Exclusions
Consolidated
value
(2+3+4+5-6)
6
1 Q 2006
535 284
358 814
531 599
78 019
-706 762
796 954
2 Q 2006
581 514
354 581
583 305
59 729
-737 825
841 304
3 Q 2006
571 556
369 041
619 219
83 942
-784 150
859 608
4 Q 2006
518 546
393 884
705 006
58 935
-781 811
894 560
1 Q 2006
290 637
198 374
229 924
78 019
0
0
2 Q 2006
324 869
175 457
270 104
70 874
0
0
3 Q 2006
341 331
193 617
258 839
65 821
0
0
4 Q 2006
304 181
227 989
370 764
-8 374
0
0
1 Q 2006
244 647
160 440
301 675
0
-706 762
0
2 Q 2006
256 645
179 124
313 201
-11 145
-737 825
0
3 Q 2006
230 225
175 424
360 380
18 121
-784 150
0
4 Q 2006
214 365
165 895
334 242
67 309
-781 811
0
1 Q 2006
-235 543
-253 406
-495 048
0
706 762
-277 235
2 Q 2006
-236 817
-250 963
-543 873
0
737 825
-293 828
3 Q 2006
-258 578
-263 603
-566 379
0
784 150
-304 410
4 Q 2006
-228 663
-283 315
-611 320
0
781 811
-341 487
1 Q 2006
-95 492
-91 782
-89 961
0
0
0
2 Q 2006
-60 209
-114 370
-119 249
0
0
0
3 Q 2006
-67 895
-93 906
-142 609
0
0
0
4 Q 2006
-45 259
-132 477
-163 751
0
0
0
1 Q 2006
-140 051
-161 624
-405 087
0
706 762
0
2 Q 2006
-176 608
-136 593
-424 624
0
737 825
0
3 Q 2006
-190 683
-169 697
-423 770
0
784 150
0
4 Q 2006
-183 404
-150 838
-447 569
0
781 811
0
1 Q 2006
299 741
105 408
36 551
78 019
0
519 719
2 Q 2006
344 697
103 618
39 432
59 729
0
547 476
3 Q 2006
312 978
105 438
52 840
83 942
0
555 198
4 Q 2006
289 883
110 569
93 686
58 935
0
553 073
1 Q 2006
-50 709
-19 521
0
0
0
-70 230
2 Q 2006
-47 919
-19 176
0
0
0
-67 095
3 Q 2006
-65 495
1 291
0
0
0
-64 204
4 Q 2006
-15 511
-3 186
0
0
0
-18 697
1 Q 2006
249 032
85 887
36 551
78 019
0
449 489
2 Q 2006
296 778
84 442
39 432
59 729
0
480 381
3 Q 2006
247 483
106 729
52 840
83 942
0
490 994
4 Q 2006
274 372
107 383
93 686
58 935
0
534 376
1 Q 2006
347 809
108 177
0
-64 625
0
391 361
2 Q 2006
388 963
112 743
1 119
-85 444
0
417 381
3 Q 2006
348 583
130 600
-551
-75 750
0
402 882
4 Q 2006
314 238
140 652
0
-10 726
0
444 163
1 Q 2006
-77 999
-11 167
-1 120
14 613
0
-75 673
2 Q 2006
-110 904
-12 964
-2 237
53 978
0
-72 127
3 Q 2006
-86 297
-12 417
-2 048
27 673
0
-73 089
4 Q 2006
-23 446
-12 484
-2 401
-47 082
0
-85 413
Net fee and commission 1 Q 2006
income
2 Q 2006
269 810
97 010
-1 120
-50 012
0
315 688
278 059
99 779
-1 118
-31 466
0
345 254
3 Q 2006
262 286
118 183
-2 599
-48 077
0
329 793
Interest income
external income
Internal income
Interest expenses
external expenses
internal expenses
Net interest income
Impairment charges
Net interest income
after impairment
charges
Fee and commission
income
Fee and commission
expenses
19/26
Net trading result
expenses
and expenses
Operating profit
Net income from
investments
Goodwill impairment
and expenses
activities
Income tax
Minority interests
Net income
4 Q 2006
290 792
128 168
-2 401
1 Q 2006
0
0
4 113
2 Q 2006
0
0
7 355
3 Q 2006
0
0
-3 360
-57 809
0
358 750
4 206
0
8 319
-5 525
0
1 830
-6 224
0
-9 584
4 Q 2006
0
0
-12 155
4 761
0
-7 394
1 Q 2006
-290 522
-100 930
-15 321
76
0
-406 697
2 Q 2006
-279 535
-106 364
-17 681
670
0
-402 910
3 Q 2006
-300 851
-93 202
-8 726
-3 449
0
-406 228
4 Q 2006
-327 292
-59 898
-18 791
2 704
0
-403 277
1 Q 2006
0
0
0
-5 545
0
-5 545
2 Q 2006
0
0
0
511
0
511
3 Q 2006
0
0
0
-20 248
0
-20 248
4 Q 2006
0
0
0
-29 120
0
-29 120
1 Q 2006
228 320
81 967
24 223
26 744
0
361 254
2 Q 2006
295 302
77 857
27 988
23 919
0
425 066
3 Q 2006
208 918
131 710
38 155
5 944
0
384 727
4 Q 2006
237 872
175 653
60 339
-20 529
0
453 335
1 Q 2006
137
-29
2 983
0
0
3 091
2 Q 2006
-24
78
-19 345
-7
0
-19 298
3 Q 2006
2
196
8 158
16 668
0
25 024
4 Q 2006
10 862
91
3 170
-7 437
0
6 686
1 Q 2006
0
0
0
0
0
0
2 Q 2006
0
0
0
0
0
0
3 Q 2006
0
0
0
0
0
0
4 Q 2006
0
0
0
0
0
0
1 Q 2006
0
0
0
-1 078
0
-1 078
2 Q 2006
0
0
0
-1 991
0
-1 991
3 Q 2006
0
0
0
-1 688
0
-1 688
4 Q 2006
0
0
0
-1 542
0
-1 542
1 Q 2006
228 457
81 938
27 206
25 666
0
363 267
2 Q 2006
295 278
77 935
8 643
21 921
0
403 777
3 Q 2006
208 920
131 906
46 313
20 924
0
408 063
4 Q 2006
248 734
175 744
63 509
-29 508
0
458 479
1 Q 2006
0
0
0
-71 634
0
-71 634
2 Q 2006
0
0
0
-69 761
0
-69 761
3 Q 2006
0
0
0
-93 296
0
-93 296
4 Q 2006
0
0
0
-96 271
0
-96 271
1 Q 2006
-5 879
-1 174
0
0
0
-7 053
2 Q 2006
-8 708
-1 151
0
0
0
-9 859
3 Q 2006
-5 048
-1 348
0
0
0
-6 396
4 Q 2006
-9 809
-1 738
0
0
0
-11 547
1 Q 2006
222 578
80 764
27 206
-45 968
0
284 580
2 Q 2006
286 570
76 784
8 643
-47 840
0
324 157
3 Q 2006
203 872
130 558
46 313
-72 372
0
308 371
4 Q 2006
238 925
174 006
63 509
-125 779
0
350 661
* Excluding results on sales of treasury and custody products as generated by International Markets Division and presented entirely in the results
of Corporate and Retail segments.
In the retail banking segment, the interest margin shrunk by PLN 23,095 thousand (or 7.38%) compared to the
rd
3 quarter of 2006.
The net fee and commission income was up PLN 28,506 thousand against Q3 (up 10.87%).
The operating costs and general administrative expenses of the retail segment increased by PLN 26,441
thousand (i.e. 8.79%) in the fourth quarter of 2006 relative to the third.
rd
The operating profit of the retail segment was up PLN 28,954 thousand (13.86%) relative to the 3 quarter of
2006, mainly due to the higher net fee and commission income.
20/26
th
In the corporate banking segment, the interest margin rose by PLN 5,131 thousand (4.87%) in the 4 quarter of
2006.
In 4Q 2006 the fee and commission income went up by PLN 9,985 ths as compared to 3Q 2006 (or 8.45%).
The operating costs and general administrative expenses of the corporate segment were PLN 33,304 thousand
(35.73%) lower in the fourth than in the third quarter of 2006.
The corporate segment recorded a major gain in the operating profit, amounting to PLN 49,943 thousand
(33.36%), mainly as a result of a higher net fee and commission income and a cut in administrative expenses.
The International Markets Segment (excluding the results of the Sales and Custody Areas which are fully
allocated to the Retail and Corporate segments), generated PLN 63,509 thousand of gross profit in the fourth
quarter of 2006, which was PLN 17,196 thousand more than in the third.
The International Markets Segment achieved PLN 49,938 thousand of income on sales of treasury and custody
th
products, reported in the results of the Corporate and Retail segments for the 4 quarter of 2006, which was PLN
15,046 thousand less than in the third quarter. The result on custody products excludes the income on FX
transactions of custody clients.
th
In the 4 quarter, the net interest income amounted to PLN 93,686 thousand, up PLN 40,846 thousand (77.30%)
th
on the third quarter. Net trading income generated in the 4 quarter of 2006 amounted to PLN -12,155 thousand
and was PLN 8,795 thousand (261.76%) less than in the third. The result on financial investments amounted to
th
PLN 3,170 thousand in the 4 quarter, PLN 4,988 thousand less than in the third.
PLN’000
Retail
Corporate
Internal
Markets
Other (not
assigned to
segments)
Total assets
31.03.2006
19 437 684
17 089 486
21 125 090
5 069 166
62 721 426
30.06.2006
18 664 421
16 181 901
22 985 046
6 564 119
64 395 487
30.09.2006
19 367 361
16 414 082
23 506 320
6 119 261
65 407 024
31.12.2006
19 494 338
16 276 777
23 219 215
5 766 759
64 757 089
Assets
Total assets
PLN’000
Retail
Corporate
Internal
Markets
Other (not
assigned to
segments)
Total
liabilities
31.03.2006
24 839 440
17 200 275
12 002 772
8 678 939
62 721 426
30.06.2006
24 310 090
17 334 286
12 617 578
10 133 533
64 395 487
30.09.2006
24 904 612
18 058 166
12 868 057
9 576 189
65 407 024
31.12.2006
24 706 904
18 152 707
13 591 654
8 305 824
64 757 089
Liabilities
Total liabilities
21/26
ABRIDGED FINANCIAL STATEMENTS OF BANK BPH SA
FOR THE 4 QUARTERS OF 2006
INCOME STATEMENT OF BANK BPH SA
PLN’000
Interest income
4th quarter
4 guarters in
accruals
4th quarter
4 guarters in
accruals
1 Oct. 2006 31 Dec. 2006
1 Jan. 2006 31 Dec. 2006
1 Oct. 2005 31 Dec. 2005
1 Jan. 2005 31 Dec. 2005
840 772
3 210 161
718 836
2 848 136
-324 360
-1 145 963
-242 233
-952 702
Net interest income
516 412
2 064 198
476 603
1 895 434
Impairment charges
-18 080
-210 335
-56 477
-246 394
Net interest income after
impairment charges
498 332
1 853 863
420 126
1 649 040
398 820
1 516 332
358 306
1 286 209
-72 699
-271 424
-72 659
-270 364
326 121
1 244 908
285 647
1 015 845
-8 808
-9 199
20 360
73 441
-383 318
-1 541 661
-352 259
-1 482 483
Other operating income and
expenses
-27 264
-51 132
7 791
15 971
Operating profit
405 063
1 496 779
381 665
1 271 814
6 686
15 510
-6 139
3 125
0
0
0
-10 950
-993
-4 184
-1 081
-4 382
410 756
1 508 105
374 445
1 259 607
Income tax
-86 505
-302 327
-73 168
-251 358
Net income
324 251
1 205 778
301 277
1 008 249
Interest expenses
Net trading result
Goodwill impairment
Result on other income and
expenses
1 205 778 000
1 008 249 000
28 716 230
28 716 230
Earnings per ordinary share (in PLN)
41.99
35.11
Weighted average diluted number of
ordinary shares
28 716 230
28 716 230
41.99
35.11
Net income (in PLN)
Weighted average number of
ordinary shares
Diluted earnings (loss) per ordinary
share (in PLN)
22/26
INCOME STATEMENT OF BANK BPH SA
PLN’000
By quarter
Interest income
Q4 2006 Q3 2006
Q2 2006
Q1 2006
Q4 2005
Q3 2005
Q2 2005
Q1 2005
840 772
807 569
825 650
736 170
718 836
702 263
737 357
689 680
-324 360
-287 016
-284 518
-250 069
-242 233
-224 893
-247 636
-237 940
Net interest income
516 412
520 553
541 132
486 101
476 603
477 370
489 721
451 740
Impairment charges
-18 080
-62 041
-64 762
-65 452
-56 477
-60 407
-54 010
-75 500
Net interest income
after impairment
charges
498 332
458 512
476 370
420 649
420 126
416 963
435 711
376 240
Fee and commission
income
398 820
373 119
391 617
352 776
358 306
324 300
319 298
284 305
Fee and commission
expenses
-72 699
-68 654
-73 443
-56 628
-72 659
-62 060
-80 138
-55 507
Net fee and
commission income
326 121
304 465
318 174
296 148
285 647
262 240
239 160
228 798
-8 808
-10 291
1 288
8 612
20 360
5 499
22 274
25 308
expenses
-383 318
-388 006
-385 163
-385 174
-352 259
-373 395
-367 233
-389 596
and expenses
-27 264
-20 518
1 078
-4 428
7 791
-8 331
12 098
4 413
Operating profit
405 063
344 162
411 747
335 807
381 665
302 976
342 010
245 163
Net income from
investments
6 686
25 024
-19 259
3 059
-6 139
1 326
-3 090
11 028
0
0
0
0
0
0
-5 592
-5 358
-993
-1 036
-1 077
-1 078
-1 081
-1 095
-1 094
-1 112
activities
410 756
368 150
391 411
337 788
374 445
303 207
332 234
249 721
Income tax
-86 505
-80 455
-64 942
-70 425
-73 168
-58 209
-70 640
-49 341
Net income
324 251
287 695
326 469
267 363
301 277
244 998
261 594
200 380
Interest expenses
Net trading result
Goodwill impairment
and expenses
Due to the changes in the recognition of Fair Value Option of derivatives, which occurred in Bank BPH 2005 Annual Report, the
above table presents comparable data for particular quarters of 2005 and 2006.
23/26
BALANCE SHEET OF BANK BPH SA
PLN’000
Assets
As at 31
Dec. 2006
As at 30
Sept. 2006
As at 31
Dec. 2005
As at 30 Sept.
2005
Cash and balances with the central bank
2 242 711
1 695 323
1 746 183
2 712 102
Trading assets
2 968 374
2 583 618
2 432 841
2 200 394
Loans and advances to, and placements with
banks
8 660 254
13 240 015
12 347 887
13 739 566
-365
-589
-891
-3
Loans and advances to customers
32 591 272
32 629 519
29 322 029
28 745 702
Loan impairment
-1 298 654
-1 319 918
-1 688 209
-1 776 481
Other financial assets
13 881 442
10 822 003
8 693 888
10 676 837
Property and equipment
911 774
920 166
963 577
900 302
Intangible assets
286 000
282 522
316 901
290 163
Assets of disposal group classifield as held for
sale
201 610
239 370
0
0
Other assets
828 635
872 932
735 537
863 207
Tax assets
572 900
548 113
561 576
610 291
62 572 072
63 285 468
56 558 843
60 128 273
Loan impairment
Total assets
PLN’000
Liabilities
Amounts owed to the central bank
As at 31
Dec. 2006
As at 30
Sept. 2006
As at 31
Dec. 2005
As at 30
Sept. 2005
200 000
94 181
89 403
87 810
3 091 254
7 634 046
5 184 631
9 773 324
41 394 479
38 633 121
37 321 902
37 076 931
7 713 576
7 675 496
4 608 563
3 648 537
Provisions
660 354
577 334
646 827
616 574
Income tax provision
536 490
477 509
529 327
559 666
Trading liabilities
1 359 258
1 154 517
1 237 807
1 756 205
Other liabilities
1 415 839
1 171 191
1 166 272
1 090 644
Shareholders' equity
6 737 312
6 345 582
6 303 438
6 078 248
62 572 072
63 285 468
56 558 843
60 128 273
11.58
11.25
12.36
12.91
6 737 312 000
6 345 582 000
6 303 438 000
6 078 248 000
28 716 230
28 716 230
28 716 230
28 716 230
234.62
220.98
219.51
211.67
28 716 230
28 716 230
28 716 230
28 716 230
234.62
220.98
219.51
211.67
Amounts owed to banks
Amounts owed to customers
Liabilities evidenced by certificates
Total liabilities and shareholders'
equity
Capital adequacy ratio
Book value (in PLN)
Number of shares
Book value per share (in PLN)
Diluted number of shares
Diluted book value per share (in PLN)
24/26
STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY OF BANK BPH SA
PLN’000
SHARE
CAPITAL
OTHER
RESERVES
REVALUATIO
N RESERVE
RETAINED
PROFITS
TOTAL
143 581
4 827 916
260 742
1 071 199
6 303 438
Increases due to revaluation of
securities available for sale (net of
tax)
0
0
149 804
0
149 804
Net income on sale of securities
available for sale
0
0
-866
0
-866
Net income of hedging derivatives
(net of tax)
0
0
-59 355
0
-59 355
0
0
-45 168
45 168
0
Net income
0
0
0
1 205 778
1 205 778
143 581
4 827 916
305 157
2 322 145
7 598 799
Charge for 2005 dividend
0
0
0
-861 487
-861 487
0
106 464
0
-106 464
0
Changes of accounting policies
0
-94 661
0
94 661
0
0
22 000
0
-22 000
0
143 581
4 861 719
305 157
1 426 855
6 737 312
SHARE
CAPITAL
OTHER
RESERVES
REVALUATIO
N RESERVE
RETAINED
PROFITS
TOTAL
143 581
4 827 916
260 742
1 071 199
6 303 438
Increases due to revaluation of
securities available for sale (net of
tax)
0
0
142 505
0
142 505
available for sale
0
0
-1 076
0
-1 076
(net of tax)
0
0
-119 325
0
-119 325
0
0
-139
139
0
Opening balance of shareholders'
equity on 1 January 2006
BALANCE on 31 December 2006
PLN’000
equity on 1 January 2006
Net income
0
0
0
881 527
881 527
143 581
4 827 916
282 707
1 952 865
7 207 069
0
0
0
-861 487
-861 487
0
106 464
0
-106 464
0
Changes of accounting policies
0
-94 661
0
94 661
0
0
22 000
0
-22 000
0
143 581
4 861 719
282 707
1 057 575
6 345 582
SHARE
CAPITAL
OTHER
RESERVES
REVALUATIO
N RESERVE
RETAINED
PROFITS
TOTAL
143 581
4 690 369
148 076
835 124
5 817 150
Increase due to repricing of securities
available for sale (net of tax)
0
0
12 686
0
12 686
available for sale
0
0
-13 528
0
-13 528
0
0
113 100
0
113 100
BALANCE on 30 September 2006
PLN’000
equity 1 January 2005
25/26
(net of tax)
Other increases
0
0
408
0
408
Net income
0
0
0
1 008 249
1 008 249
143 581
4 690 369
260 742
1 843 373
6 938 065
0
0
0
-634 629
-634 629
0
137 547
0
-137 547
0
Other
0
0
0
2
2
143 581
4 827 916
260 742
1 071 199
6 303 438
SHARE
CAPITAL
OTHER
RESERVES
REVALUATIO
N RESERVE
RETAINED
PROFITS
TOTAL
143 581
4 690 369
148 076
835 124
5 817 150
Increase due to repricing of securities
available for sale (net of tax)
0
0
18 559
0
18 559
(net of tax)
0
0
183 963
0
183 963
Increases due to tax effect of the
revaluation of securities available for
sale
0
0
-13 769
0
-13 769
Net income
0
0
0
706 972
706 972
143 581
4 690 369
336 829
1 542 096
6 712 875
0
0
0
-634 629
-634 629
0
137 547
0
-137 547
0
Other
0
0
0
2
2
143 581
4 827 916
336 829
769 922
6 078 248
BALANCE on 31 December 2005
PLN’000
equity 1 January 2005
BALANCE on 30 September 2005
CASH FLOW STATEMENT OF BANK BPH SA
PLN’000
4th quarter
4 guarters in
accruals
4th quarter
4 guarters in
accruals
1 Oct. 2006 31 Dec. 2006
1 Jan. 2006 31 Dec. 2006
1 Oct. 2005 31 Dec. 2005
1 Jan. 2005 31 Dec. 2005
I.
Net cash flow from operating activities
- indirect method
609 544
-734 628
-1 671 664
-799 977
II.
Net cash flow from investing activities
-72 686
-84 939
-198 620
-455 787
III. Net cash flow from financing activities
10 530
1 316 095
904 365
1 304 216
547 388
496 528
-965 919
48 452
IV. Total net cash flow
26/26

Comments to Consolidated Report of Bank BPH Group FOR 4

Transcription

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