Bank Przemyslowo - Handlowy PBK SA
COMMENTS
TO THE CONSOLIDATED Q3 2003 REPORT OF THE
BANK PRZEMYSLOWO-HANDLOWY PBK SA GROUP
CONSOLIDATED NET PROFIT: PLN 271.3 Mio
CONSOLIDATED GROSS PROFIT, including share of subsidiary profit: PLN 405.1 Mio
HIGHLIGHTS
-- Consolidated gross profit (including share of subsidiary profit) during the
first nine months of 2003 was 124.9 percent up from the comparable period of
2002;
-- Consolidated net profit of the during the first nine months of 2003 at PLN
271.3 Mio, a 115 percent growth;
-- Consolidated commission income at PLN 530.2 Mio, a 16.2 percent increase;
-- The Group's operating costs including depreciation dropped by 6.7 per cent.
RETAIL BANKING
-- Market standing in loans and deposits further consolidated (during previous
12 months, the lending market share rose by 1.4 percentage point to 9.8
percent, while the deposit market share grew by 0.3 percentage point to 10.1
percent);
-- Mortgage lending volume up by 69 percent between September 2002 and
September 2003;
-- 3.4 percent retail lending margin at the end of September achieved in the
face of difficult macroeconomic situation (3.3 percent at the end of 2002);
-- Deposit margin 0.5 percentage point lower after three quarters at 2.3
percent;
-- Consolidation of leadership in alternative distribution channels; during
previous 12 months, Call Center client numbers rose by 63 percent and web
banking clients by 93 percent.
CORPORATE BANKING
-- Consistently growing average lending volumes reached PLN 14 428 Mio at the
end of September;
-- Growing average deposit volumes at PLN 8 613 Mio at the end of the period;
-- Electronic transactions account for 78 percent of all corporate
transactions;
-- Contracts signed with large clients on the Polish market;
-- Steady expansion of the leasing business.
INTERNATIONAL MARKETS
-- Average monthly derivative and fixed-yield securities' trading up by 94
percent as compared to September 2002;
-- Custodian asset volume up by 65 percent as compared to September 2002.
FINANCIAL HIGHLIGHTS ACCORDING TO IAS
Group's financial performance during the first nine months of 2003, as measured
according to the International (IAS) and Polish (PAS) Accounting Standards:
1. Consolidated gross profit
PLN '000
September 2003
IAS 438 623
PAS 412 970
2. Consolidated net profit
PLN '000
September 2003
IAS 291 483
PAS 271 270
The differences between the Group's IAS and PAS profit figures as at the end of
Q3 2003 (a positive balance of PLN 20 Mio in favour of the IAS figure), resulted
primarily from:
1. taking off the books the costs that according to PAS are settled over time,
whereas according to IAS, they are fully included as costs of previous periods;
2. the adjustment of goodwill amortisation to the change in value of aid
received (fair value in IAS and nominal value in PAS);
3. the adjustment of depreciation to the real estate value;
4. the settlement of the difference in the revaluation at fair value of aid
received for the acquisition of banks by the former PBK SA (fair value in IAS
and nominal value in PAS);
5. the adjustment of the watch category interests booked as revenues under IAS
and as suspended interests under PAS;
6. adjustment of interest on non-performing loans guaranteed by companies with
good economic standing: shown as income in IAS and as suspended income in PAS;
7. taking off the PAS books the at-equity valuation of subsidiaries and
affiliates (a cost method applied in IAS). The permanent reduction in the value
of these companies is reflected in the P&L account;
8. taking off the PAS books the valuation of T-bonds booked in the balance sheet
as a cash reserve (not revaluated under IAS).
MAJOR DEVELOPMENTS AND RELATED EVENTS
During the third quarter of 2003, BPH PBK continued to restructure the Group by
selling off equity in non-strategic companies and consolidating entities with
identical scope of business.
On 26 February 2003, the Bank concluded a preliminary contract to sell 47
percent of PGRI Aktyn Sp. z o.o. The final contract was made conditional on the
buyer's obtaining a relevant permission of the Ministry of Interior and
Administration. On 18 June 2003, the condition was fulfilled and the transaction
was executed on 17 July. Aktyn was sold for PLN 13 000 000 bringing the net
proceeds to PLN 6 301 002.38 after deducting the PLN 470 000 purchase price and
adding the PLN 6 228 997.67 valuation gain.
The Bank continued to consolidate its leasing business, a process initiated
during the previous year. At the centre of the process was BPH PBK Leasing SA,
the subsidiary designated to become the parent of all leasing entities in the
Group and, following the eventual wholesale merger, the single provider of
leasing services in the Group.
During Q3 2003, the focus was on the acquisition of BA-Creditanstalt Leasing
Poland Sp. z o.o. by Bankowe Towarzystwo Leasingowe SA.
On 30 May, acting in accordance with the "Agreement on the Provision of
Assistance in the Restructuring of Wschodni Bank Cukrownictwa S.A." signed by 12
commercial banks on 22 June 2002, the Bank accepted a offer of taking over 21
890 000 shares in Wschodni Bank Cukrownictwa S.A. of Lublin (WBC S.A.) worth the
combined total of PLN 21 890 000. The shares were paid for with a loan taken by
BPH PBK SA with the Polish Bank Guarantee Fund (Bankowy Fundusz Gwarancyjny). On
1 July, the WBC S.A. had its capital increase formally registered with the
courts and the Banking Supervisory Commission, on 2 July, cleared Bayerische
Hypo- und Vereinsbank to exercise, through BPH PBK S.A., between 10 and 20
percent of the AGM voting rights in Wschodni Bank Cukrownictwa S.A.
Consequently, the Bank has been executing the rights under its shares in WBC SA
accounting for 10.94 percent of the company's equity and 10.94 percent of the
AGM votes.
Additionally the Bank continued to increase its share of the initial capital of
G�rnolski Bank Gospodarczy S.A. bringing it to 71.21 percent by consistently
purchasing shares both from the issuer and other holders 100 016 shares worth
PLN 330 336.50 (of which 88 093 shares worth the combined total of PLN 294
566.50 were purchased during Q2 2003). At the end of June 2003, the Bank held
the combined total of PLN 75 547 882.78 worth of shares. On 1 September, the
Bank was advised on the registration of the GBG's capital increase through the
R-share issue. The issue was distributed to the existing shareholders in
proportion to their holdings. BPH PBK received 31 303 931 shares worth the
combined total of PLN 42 260 306.85. As at 30 September, the Bank had PLN 117
808 189.63 worth of GBG's equity. There had been no changes to the AGM voting
rights or the share of the tier capital.
The Bank has acquired possession of 45 357 shares in Wolny Obszar Gospodarczy SA
of Gdynia after BPH PBK had moved on to claim the shares pledged as collateral
for loans to Stocznia Gdynia S.A. The holding, worth the total of PLN 6 868 000,
constitutes 33.58 percent of all shares issued by the company and entitles the
owner to 33.58 percent of the AGM votes. However, as WOG SA has the perpetual
usufruct of property located within the national border zone a permission of the
Ministry of Interior and Administration is necessary to acquire the company's
shares, upon the grant of which can the Bank exercise its rights under the
shares received during the Stocznia Gdynia SA restructuring process. The Bank
has applied for the permission. The company is active in loading of harbour
steel structures and large sized cargo; renting modern office space and
production and warehouse facilities, marine vessel maintenance, harbour ship
services, steel structure manufacture.
During the same month, in a similar debt conversion operation the Bank acquired
5 293 544 E-series shares of Stalexport S.A. At the moment, the Bank's exposure
stands at PLN 10 587 088 and our initial capital and AGM votes account for 4.91
percent of the respective total. Stalexport SA is listed on the Warsaw Stock
Exchange and engages in international commercial trade of steel constructions.
The issue E was first listed on 10 October 2003.
FACTORS AND EVENTS CONSIDERABLY INFLUENCING FINANCIAL PERFORMANCE
As at the end of September 2003, the Group grossed PLN 405.1 Mio in profits or
224,9 percent of the consolidated profit for the same period of previous year
(including subsidiary profit valued by equity accounting). The consolidated net
profit stood at PLN 271,3 Mio, 115 percent up from Q3 2002.
The table below summarises the Group's interest income and expense, including
interest on fx swap deals, as at the end of Q3 2003 and Q3 2002.
PLN '000
30 Sep 2003 30 Sep 2002
Income 2 235 094 3 296 142
Expense 1 184 529 1 895 084
Net interest income 1 050 565 1 401 058
Exchange position adjusted for fx swap interest 33 948 146 480
Net interest income including fx swap points was slightly lower than in the
corresponding period of the previous year. During the first nine months of 2003,
there was a reduction of the difference between interest rates on transactions
denominated in PLN on the one hand and in dollars and the euro on the other.
During the period, the interest rate margin on total assets (including fx swap
points) stood at 3.1 per cent.
Net fee and commission income was 16,2 percent up form the comparable period of
2002.
Net commision income structure as at 30.09.2003 is as follows:
Net commision income %
------------------------------------------------------------------------------------------------------------------------
from securities and brokerage activities 3.5
------------------------------------------------------------------------------------------------------------------------
from loans 26.6
------------------------------------------------------------------------------------------------------------------------
from payments 62.0
------------------------------------------------------------------------------------------------------------------------
inc. cards 19.7
------------------------------------------------------------------------------------------------------------------------
from foreign trade operations 8.5
------------------------------------------------------------------------------------------------------------------------
other - 0.6
------------------------------------------------------------------------------------------------------------------------
total 100.0
------------------------------------------------------------------------------------------------------------------------
This component has been steadily increasing its share in the Group's operating
result and rose from 22.0 percent in September 2002 to 27.8 percent one year
later.
At the end of June, the exchange rate position after transferring the fx swap
interest income stood at PLN 33,9 Mio, far less than the year before.
At PLN 248.8 Mio, the performance on financial operations was much stronger (PLN
69.5 Mio in September 2002).
Total fx result of BPH PBK (excluding swap points) as at 30.09.2003 amounted
271,4 Mio PLN, including result with customers 192 Mio PLN.
The consolidated performance on the banking business stood at PLN 1908.8 Mio, a
8 percent down on the year before. The main reason of decrease of result of
banking activities was decrease of net interest income as result of decreasing
interest rate margin.
The Group reduced its operating costs by 7.5 percent, while depreciation was 1.5
percent lower as compared to Q3 2002. Material items accounted for the greatest
cost reduction, but there were also results in the cost of salaries.
Consequently, the cost/income (C/I) ratio was 64.6. At the end of Q3 2003, the
Group has made PLN 5.4 Mio in provisions for benefits paid out under
restructuring.
In September 2003, specific provisions and the revaluation reserve were lower by
PLN 329,2 Mio or 61,7 per cent compared to September 2002.
New write-downs for provisions and revaluation were lower by PLN 115 Mio (or by
9.5 percent), whilst the released provisions (including revaluation) were up on
the comparable period by 31.4 percent (by PLN 214.1 Mio).
Loans and specific provisions
The table below reflects the quality structure of the Group's gross profits as
at 30 September 2003 as compared to 31 December 2002 and to 30 September 2002.
Value Value
PLN Mio Value PLN Mio
30 September Structure PLN Mio Structure 30 September Structure
Loan category 2003 per cent 31 Dec. 2002 per cent 2002 per cent
------------------------------------------------------------------------------------------------------------------------
Performing 19 404.1 73.5 16 222.5 70.9 15 752.1 69.1
------------------------------------------------------------------------------------------------------------------------
Watch 1 420.2 5.4 1 605.1 7.0 1 765.6 7.8
------------------------------------------------------------------------------------------------------------------------
Non-performing including: 5 568.2 21.1 5 047.0 22.1 5 274.7 23.1
------------------------------------------------------------------------------------------------------------------------
Substandard 954.9 3.6 820.2 3.6 1 133.2 5.0
------------------------------------------------------------------------------------------------------------------------
Doubtful 1 494.2 5.7 1 243.6 5.4 1 214.6 5.3
------------------------------------------------------------------------------------------------------------------------
Loss 3 119.1 11.8 2 983.2 13.1 2 926.9 12.8
------------------------------------------------------------------------------------------------------------------------
TOTAL 26 392.5 100.0 22 874.6 100.0 22 792.4 100.0
------------------------------------------------------------------------------------------------------------------------
During Q3, the credit volume increased by 2.6 per cent. As compared to the end
of 2002, the Group's portfolio has increased by 15.4 percent and by 15,8 percent
against the end of Q3 2002.
Non-performing loans dropped from 22.1 percent of the portfolio at the end of
2002 to 21.1 percent in Q3 2003. However the value of non-performing loans
increased by 10.3 percent, with doubtful category recording the greatest
increase.
Provisioning coverage stood at 9.2 per cent. Overall, the coverage including
security and adjusted for capitalised interest reducing the provisioning base
stood at 22.4 per cent, with non-performing loans covered at 92.7 per cent.
Balance sheet
At the end of September 2003, the balance sheet amount was higher than one year
earlier (by 2.3 percent or PLN 1 bn) and 1.3 percent or PLN 0.6 bn higher than
in June 2003.
On the liabilities' side, the greatest change was recorded in the payables under
securities sold with repurchase agreement, which rose by PLN 1.2 billion in
comparison to September 2002 (when this source of financing dropped to nil).
During Q3, these payables dropped by PLN 0.3 bn.
Liabilities to the non-financial sector dropped by PLN 0.9 bn or 3.1 percent and
to the budget sector by PLN 0.4 bn or 11 percent, as compared to September 2002.
During Q3, the liabilities to the non-financial sector rose by 0.9 percent and
this was the source of 57.8 percent of the Group's assets at the end of
September. Also, the liabilities to the budget sector posted a 3.4 percent
increase during Q3.
During Q3, BPH PBK S.A. made a bond issue. However, the liabilities under debt
security issues remained small at 0.3 percent.
Equity and net income rose by 4.8 percent on the year before and financed 11.4
percent of the Group's assets.
The Bank continued the positive structural trends in its asset portfolio.
Receivables from the financial sector (chiefly placements with banks) were
reduced by PLN 1.4 bn or by 32.4 percent. This was compensated by payables from
the non-financial sector rising by PLN 1.3 bn or 6 percent. During Q3, the
central budget payables dropped by PLN 0.5 bn, while the volume of debt
securities increased by PLN 1.2 bn or 9.6 percent.
The table below summarises assets structure in various periods.
30 Sep 03 30 Jun 03 31 Mar 03 31 Dec 02 30 Sep 02
------------------------------------------------------------------------------------------------------------------------
Amounts due from fin. Sector 6,3 9,5 13,9 14,6 17,1
Amounts due from non-fin. Sector 48,5 46,3 45,3 41,7 43,0
Amounts due from budget sector 3,0 4,2 3,0 3,6 2,3
Debt securities 28,8 26,6 24,1 23,3 24,0
Other 13,4 13,4 13,7 16,8 13,6
------------------------------------------------------------------------------------------------------------------------
Total 100,0 100,0 100,0 100,0 100,0
MAJOR FACTORS EXPECTED BY THE ISSUER TO INFLUENCE HIS FINANCIAL PERFORMANCE
DURING THE SUBSEQUENT QUARTER OR LATER
Following factors will have material impact on the Bank's result in 2003:
- forecasted decrease of corporate income tax rate from 27% to 19%, which will
force recalculation of deferred tax assets and provision with the new tax rate.
The difference of this revaluation will be booked to the Bank's net result
- forecasted further gradual improvement of performance of Polish economy
- further decrease of market interest rates
- continuation of consolidation and restructuring process of Group concerning
following companies : MCG, PBK Atut TFI and TUn� Royal PBK
ADJUSTMENTS FOR PROVISIONS
Provisions
The balance of provisions made and released as at 30 September 2003 stood at PLN
204 713 000.
PLN '000
30 Sep 2003
Net write-downs for receivables, off-balance sheet liabilities -195 146
Updated value of financial assets +7 826
General risk provisions -17 393
Reserve and assets for deferred income tax
Pursuant to Art. 37 of the Accounting Law the BPH PBK Group is required to make
provisions and establish assets under deferred corporate tax in relation to
temporary difference between the book value of assets and liabilities and their
taxable value and any loss that can be deducted from tax in the future.
Assets under the deferred taxes are established at the equivalent if the future
amount to be deducted from corporate tax in relation to the negative temporary
difference, which in the future will reduce the taxable income as, determined
following the prudential principle.
The deferred tax provisions should be made equivalent to the amount of the
income tax to be paid in the future in relation to the temporary difference, or
the difference that would increase the future taxable income.
As on 30 June 2003, the deferred tax provisions stood at PLN 410 665 000 and the
deferred tax assets stood at PLN 925 089 000.
Compared to the amount applicable on 30 June 2003, the deferred tax provision
were down by PLN 47 182 000 and the deferred tax assets were up by 57 712 000.
The change in provisioning is attributable principally to the lower balance of
valuation gain on derivatives, while interest on CIRS and IRS, as well as
interest on and discount of securities went up. The higher assets for deferred
tax resulted from the increased negative valuation of derivatives, supplemented
by greater amount of interest on securities repurchase agreements; payable
interest on derivatives, interest on deposits and borrowings, as well as the
option premium received all recorded a decrease.
Write-downs and the value of assets
Under fixed assets and intangible assets, the Group reported items specified
under the Accounting Law of 29 September 1994 (Official Journal of Laws, Dz. U.
No 121, item 591 as amended).
When the equity accounting is used to assess the value of shares and interests
held in other companies a relevant proportion of their profits or losses is
included on the Group's P&L account under Share of net profit (loss) of
subsidiaries priced by equity accounting. At the end of September 2003, the
value was PLN 7 841 000.
SHAREHOLDERS CONTROLLING DIRECTLY OR INDIRECTLY 5 PERCENT OF THE ISSUER'S AGM
VOTES OR EQUITY
As at 30 June 2003, the shareholder structure had been as follows.
No. Shareholder SHARES AGM VOTES
-------------------------------------------------------
Number per cent Number per cent
------------------------------------------------------------------------------------------------------------------------
1 HVB Group, including: 20 442 499 71.19 20 442 499 71.19
------------------------------------------------------------------------------------------------------------------------
HVB AG 5 451 344 18.98 5 451 344 18.98
------------------------------------------------------------------------------------------------------------------------
Bank Austria Creditanstalt AG 14 990 857 52.20 14 990 857 52.20
------------------------------------------------------------------------------------------------------------------------
2 State Treasury 1 058 000 3.68 1 058 000 3.68
------------------------------------------------------------------------------------------------------------------------
3 The Bank of New York 1 158 556 4.04 1 158 556 4.04
------------------------------------------------------------------------------------------------------------------------
4 Others 6 057 175 21.09 6 057 175 21.09
------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------
TOTAL 28 716 230 100 28 716 230 100
------------------------------------------------------------------------------------------------------------------------
On 24 July, the Bank was advised on a change in the number of shares held by HVB
and Bank Austria Creditanstalt AG, resulting form HVB having had sold some of
its shares to Bank Austria Creditanstalt AG.
The resulting shareholder structure at the end of the reporting period was as
follows:
No. Shareholder SHARES AGM VOTES
-------------------------------------------------------------
Number per cent Number per cent
------------------------------------------------------------------------------------------------------------------------
1 HVB Group, including: 20.409.864 71,07 20.409.864 71,07
------------------------------------------------------------------------------------------------------------------------
HVB AG 2.729.068 9,50 2.729.068 9,50
------------------------------------------------------------------------------------------------------------------------
Bank Austria Creditanstalt AG 17.680.793 61,57 17.680.793 61,57
------------------------------------------------------------------------------------------------------------------------
2 State Treasury 1.058.000 3,68 1.058.000 3,68
------------------------------------------------------------------------------------------------------------------------
3 The Bank of New York 1.158.556 4,04 1.158.556 4,04
------------------------------------------------------------------------------------------------------------------------
4 Others 6.089.810 21,21 6.089.810 21,21
------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------
TOTAL 28 716 230 100 28 716 230 100
------------------------------------------------------------------------------------------------------------------------
CHANGES TO ISSUER'S SHARES HELD OR RIGHTS TO SHARES OWNED BY THE ISSUER'S
MANAGEMENT AND SUPERVISORS
According to the Bank's knowledge as at the end of September 2003 the following
managers and supervisors of BPH PBK SA had its shares:
Number of shares held, as at:
------------------------------------------------------------------------------------------------------------------------
30 September 2003 30 June 2003
------------------------------------------------------------------------------------------------------------------------
J�zef Wancer, President 0 0
------------------------------------------------------------------------------------------------------------------------
Mariusz Grendowicz, Vice-President 0 0
------------------------------------------------------------------------------------------------------------------------
Wojciech Sobieraj, Vice-President 0 0
------------------------------------------------------------------------------------------------------------------------
Miroslaw Boniecki, Board Member 191 191
------------------------------------------------------------------------------------------------------------------------
Niels Lundorff, Board Member 189 189
------------------------------------------------------------------------------------------------------------------------
Katarzyna Niezgoda, Board Member 0 0
------------------------------------------------------------------------------------------------------------------------
Alexander Picker, Board Member 0 0
------------------------------------------------------------------------------------------------------------------------
Issuer's shares held by the Bank's Supervisory Board Members
Number of shares held, as at:
------------------------------------------------------------------------------------------------------------------------
30 September 2003 30 June 2003
------------------------------------------------------------------------------------------------------------------------
Alicja Kornasiewicz 0 0
------------------------------------------------------------------------------------------------------------------------
Gerhard Randa 0 0
------------------------------------------------------------------------------------------------------------------------
Christine Bogdanowicz - Bindert 0 0
------------------------------------------------------------------------------------------------------------------------
Krystyna Gawlikowska - Hueckel 0 0
------------------------------------------------------------------------------------------------------------------------
Marek Wierzbowski 0 0
------------------------------------------------------------------------------------------------------------------------
Martin Gr�ll 0 0
------------------------------------------------------------------------------------------------------------------------
Anna Krajewska 0 0
------------------------------------------------------------------------------------------------------------------------
Andrzej Szelg 0 0
------------------------------------------------------------------------------------------------------------------------
Erich Hampel 0 0
------------------------------------------------------------------------------------------------------------------------
Friedrich Kadrnoska 0 0
------------------------------------------------------------------------------------------------------------------------
Wolfgang Haller 0 0
------------------------------------------------------------------------------------------------------------------------
Janusz Reiter 0 0
------------------------------------------------------------------------------------------------------------------------
Until the date of the submission of this report, no changes in the number of
shares held by managers and supervisors of the Bank occurred.
NEW PROCEEDINGS BEFORE COURTS AND OTHER PUBLIC ADMINISTRATION BODIES
During Q3 2003, the BPH PBK SA Group was not involved in any proceedings before
a court, an arbitrage body or public administration body, related to the
issuer's or its subsidiary's debt or claims, the value of which constituted at
least 10 percent of the issuer's equity, or two or more proceedings related to
liabilities or receivables the combined value of which constituted at least 10
percent of the issuer's equity.
DEVELOPMENTS AFTER THE REPORT DATE WITH SIGNIFICANT POTENTIAL FOR FUTURE
FINANCIAL PERFORMANCE
On 1 October 2003, Bank Przemyslowo-Handlowy PBK SA signed a syndication
agreement for a PLN 2.4 bn loan extended for 36 months. The Bank has committed
to lend PLN 800 bn.
To the Bank's knowledge there have been no other events after the quarterly
report date, which could significantly impact its future financial performance.
MANAGEMENT BOARD'S POSITION ON PERFORMANCE AGAINST PUBLISHED ANNUAL PROJECTIONS
The Management Board of Bank Przemyslowo-Handlowy PBK SA did not publish
financial projections for Q3 2003.
TRANSACTION(S) CONCLUDED BY THE ISSUER OR ITS SUBSIDIARY WITH ASSOCIATED
ENTITIES SINCE BEGINNING OF YEAR IF NOT TYPICAL AND ROUTINE AND IF THEIR
COMBINED VALUE EXCEEDED THE PLN EQUIVALENT OF EUR 500,000
During Q3 2003, all transactions concluded with associated entities were
entirely typical and routine in nature and carried out at arms'-length.
SURETIES AND GUARANTEES GRANTED BY THE BANK OR ITS SUBSIDIARY IF TOTALLING AT
LEAST THE EQUIVALENT OF 10 PERCENT OF THE ISSUER'S EQUITY
No transactions carried out by Bank Przemyslowo-Handlowy PBK SA fall under � 61
clause 4 item 9 of the Council of Ministers Ordinance of 16 October 2001.
OTHER FACTORS IMPORTANT TO THE ISSUER'S PERSONNEL, ASSETS AND FINANCE OF THE
CLIENT
During Q3, the Bank issued subsequent bearer bonds under the Bond Issue
Programme (Issues A12 and A13). The combined total value of the subscribed bonds
was PLN 10 745 411.25 at issue price. The programme is aimed to provide finance
for the Bank's operations.
On 22 July, Bank Przemyslowo-Handlowy PBK SA signed a contract with a syndicate
including Bank Austria Creditanstalt AG, HSH Nordbank AG and Sumitomo Mitsui
Banking Corporation Europe Limited to grant a three year loan worth EUR 180 Mio.
PRINCIPLES USED IN PREPARING THE CONSOLIDATED QUARTERLY REPORT
Accounting principles based on the following acts and regulations in force have
been used in preparing this consolidated quarterly report:
-- Accounting Law of 29 September 1994 as last amended in 2002 (Official
Journal of Laws, Dz.U. No. 76, item 694, unified text);
-- Ordinance of the Ministry of Finance of 10 December 2001 laying down
detailed principles of accounting in banking (Official Journal of Laws,
Dz.U. No. 149, item 1673);
-- Ordinance of the Ministry of Finance of 12 December 2001 on the principles
of consolidated financial reporting in banking and consolidated reporting of
financial holdings (Official Journal of Laws, Dz.U. No. 152, item 1728);
-- Ordinance of the Ministry of Finance of 10 December 2001 on principles of
risk provisioning in banking (Official Journal of Laws, Dz.U. No. 149, item
1672 as amended);
-- Ordinance of the Ministry of Finance of 12 December 2001 laying down a model
chart of accounts for banks (Official Journal of Laws, Dz.U. No. 152, item
1727);
-- Ordinance of the Ministry of Finance of 12 December 2001 on detailed
principles of crediting, methods of valuation, scope of disclosure and
presentation of financial instruments (Official Journal of Laws, Dz.U. No.
149, item 1674);
-- Ordinance of the Ministry of Finance of 16 October 2001 on current and
periodic reports submitted by securities issuers (Official Journal of Laws,
Dz.U. No. 139, item 1569 as amended).
The following basic accounting principles are used in the ledgers:
-- going concern concept,
-- accruals concept,
-- commensurability concept,
-- prudential pricing concept,
-- continuity concept.
CHANGES TO ACCOUNTING STANDARDS IN 2003
As of Q1 2003, the BPH PBK SA Group has introduced a principle whereby the
income statement should reflect the impact of the valuation of spot currency
exchange transactions even though the Bank is not legally obliged to, in view of
the very short period when the Bank has an obligation, regard such transactions
as financial derivative instruments. At the end of the first nine months of
2003, the valuation yielded a negative amount at PLN 20 Mio.
SHORT Q3 2003 FINANCIAL STATEMENTS OF
BANK PRZEMYSLOWO-HANDLOWY PBK
BPH PBK FINANCIAL PERFORMANCE
As at 30 September 2003, the gross profit stood at PLN 369.6 Mio*, or 286.5
percent of the comparable figure of 2002. The net profit stood at PLN 276.2 Mio
or 251.8 percent of the performance one year previously.
* The gross profit inclusive of the share in net profits of subsidiaries valued
at equity stood at PLN 382.8 Mio or 237.5 percent of the comparable 2002 figure.
ADJUSTMENTS FOR PROVISIONS
Provisions and valuation
As at the end of September 2003, Bank Przemyslowo-Handlowy PBK SA made PLN 181
592 000 in net operating provisions.
PLN '000
30 September 2003
------------------------------------------------------------------------------------------------------------------------
Net write-downs for receivables, off-balance sheet liabilities -173 282
------------------------------------------------------------------------------------------------------------------------
Updated value of financial assets +8 283
------------------------------------------------------------------------------------------------------------------------
General risk provisions -16 593
------------------------------------------------------------------------------------------------------------------------
Reserve and assets for deferred income tax
In accordance with Art. 37 of the Accounting Act, the Bank makes provisions and
establishes assets for a temporary difference between the book value of assets
and liabilities and their tax value and any loss deductible from the corporate
income tax in the future.
The assets for the deferred corporate tax are equal to the envisaged amount of
future tax deductions in connection with negative temporary differences, which
in the future would reduce the income-taxable amount determined according to the
prudential method.
The reserve for the deferred income tax is established equivalent to the amount
of the income tax to be paid in the future in connection with negative temporary
differences, i.e. gaps which would increase the taxable amount in the future.
As at 30 September 2003, the reserve for the deferred corporate income tax stood
at PLN 418 059 000 and the amount of the relevant assets stood at PLN 889 117
000.
Write-downs and the value of assets
Under fixed assets and intangible assets, the Bank reported items specified
under the Accounting Law of 29 September 1994 (Official Journal of Laws, Dz. U.
No 121, item 591 as amended).
When the equity method is used to assess the value of shares and interests held
in other companies a proportion of their profits or losses are included on the
Bank's P&L account.
As at 30 September, the net valuation of shares and interests was in the
positive at PLN 13.2 Mio.
PRINCIPLES USED IN PREPARING THE CONSOLIDATED QUARTERLY REPORT
Accounting principles based on the following acts and regulations in force have
been used in preparing this consolidated quarterly report:
-- Accounting Law of 29 September 1994 as last amended in 2002 (Official
Journal of Laws, Dz.U. No. 76, item 694, unified text);
-- Ordinance of the Ministry of Finance of 10 December 2001 laying down
detailed principles of accounting in banking (Official Journal of Laws,
Dz.U. No. 149, item 1673);
-- Ordinance of the Ministry of Finance of 12 December 2001 on the principles
of consolidated financial reporting in banking and consolidated reporting of
financial holdings (Official Journal of Laws, Dz.U. No. 152, item 1728);
-- Ordinance of the Ministry of Finance of 10 December 2001 on principles of
risk provisioning in banking (Official Journal of Laws, Dz.U. No. 149, item
1672 as amended);
-- Ordinance of the Ministry of Finance of 12 December 2001 laying down a model
chart of accounts for banks (Official Journal of Laws, Dz.U. No. 152, item
1727);
-- Ordinance of the Ministry of Finance of 12 December 2001 on detailed
principles of crediting, methods of valuation, scope of disclosure and
presentation of financial instruments (Official Journal of Laws, Dz.U. No.
149, item 1674);
-- Ordinance of the Ministry of Finance of 16 October 2001 on current and
periodic reports submitted by securities issuers (Official Journal of Laws,
Dz.U. No. 139, item 1569 as amended).
The following basic accounting principles are used in the ledgers:
-- going concern concept,
-- accruals concept,
-- commensurability concept,
-- prudential pricing concept,
-- continuity concept.
CHANGES TO ACCOUNTING STANDARDS IN 2003
As of Q1 2003, BPH PBK SA has introduced a principle whereby the income
statement should reflect the impact of the valuation of spot currency exchange
transactions even though the Bank is not legally obliged to, in view of the very
short period when the Bank has an obligation, regard such transactions as
financial derivative instruments. At the end of Q3 2003, the valuation stood at
PLN -20 Mio.
Form: SAB-QSr 3/2003
(quarter/year)
(for banks)
Pursuant to Par. 57 sec. 2 and Par. 58 sec. 1 of the Cuncil of Ministers Regulation dated 16 October 2001.
- Journal of Laws (Dz.U.) No. 139, item 1569 and of 2002, No. 31 item 280
The Management Board of Bank Przemysowo-Handlowy PBK SA
announces this consolidated quarterly report for the 3 rd quarter of the 2003 financial year. dated 29-10-2003
(submission date)
------------------------------------------------------------------------------------------------------------------------
PLN'000 EUR'000
----------------------------------------------------------------------------------
SELECTED FINANCIAL DATA 3 rd quarter 3 rd quarter in 3 rd quarter 3 rd quarter in
(current year) accruals(current accruals
year) (current year) (current year)
from 01.01.2003 from 01.01.2002 from 01.01.2003 from 01.01.2002
to 30.09.2003 to to to
30.09.2002 30.09.2003 30.09.2002
---------------------------------------------------------------------------------------------------------------------
I. Interest income 1,844,430 2,482,014 422,860 648,316
---------------------------------------------------------------------------------------------------------------------
II. Fee and commission income 613,385 521,324 140,627 136,173
---------------------------------------------------------------------------------------------------------------------
III. Result on banking operations 1,908,827 2,074,544 437,624 541,883
---------------------------------------------------------------------------------------------------------------------
IV. Result on operations 413,883 170,055 94,888 44,419
---------------------------------------------------------------------------------------------------------------------
V. Gross profit (loss) 412,970 169,484 88,935 41,559
---------------------------------------------------------------------------------------------------------------------
VI. Net profit (loss) 271,270 126,184 58,419 30,941
---------------------------------------------------------------------------------------------------------------------
VII. Net operating cash flow -1,638,697 476,552 -375,693 124,478
---------------------------------------------------------------------------------------------------------------------
VIII. Net cash flow from investment
activity 938,746 1,017,014 215,220 265,650
---------------------------------------------------------------------------------------------------------------------
IX. Net cash flow from financing
activity 321,406 -852,741 73,687 -222,741
---------------------------------------------------------------------------------------------------------------------
X. Total net cash flow -378,545 640,825 -86,786 167,387
---------------------------------------------------------------------------------------------------------------------
XI. Total assets 46,044,350 44,996,810 9,915,872 11,033,498
---------------------------------------------------------------------------------------------------------------------
XII. Dues to the central bank 50,012 146,024 10,770 35,806
---------------------------------------------------------------------------------------------------------------------
XIII. Dues to the financial sector 4,984,756 5,210,268 1,073,491 1,277,590
---------------------------------------------------------------------------------------------------------------------
XIV. Dues to the non-financial and
public sectors 29,864,358 31,143,629 6,431,433 7,636,611
---------------------------------------------------------------------------------------------------------------------
XV. Shareholders' funds 5,258,815 5,017,105 1,132,511 1,230,225
---------------------------------------------------------------------------------------------------------------------
XVI. Initial capital 143,581 143,581 30,921 35,207
---------------------------------------------------------------------------------------------------------------------
XVII. Number of shares 28,716,230 28,716,230 28,716,230 28,716,230
---------------------------------------------------------------------------------------------------------------------
XVIII. Book value per share
(PLN/EUR) 183.13 174.71 39.44 42.84
---------------------------------------------------------------------------------------------------------------------
XIX. Diluted book value per share
(PLN/EUR) 0 0 0 0
---------------------------------------------------------------------------------------------------------------------
XX. Capital adequacy ratio 13.48 16.70 13.48 16.70
---------------------------------------------------------------------------------------------------------------------
XXI. Profit (loss) per ordinary
share (PLN/EUR) 9.70 11.90 2.09 2.92
---------------------------------------------------------------------------------------------------------------------
XXII. Diluted profit (loss) per
ordinary share (PLN/EUR) 0 0 0 0
---------------------------------------------------------------------------------------------------------------------
XXIII. Dividend declared or paid
per ordinary share (PLN/EUR) 1.40 3.80 0.30 0.93
---------------------------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------------------------
as at as at as at as at
CONSOLIDATED BALANCE SHEET 30.09.2003 end of 30.06.2003 30.09.2002 30.06.2002
quarter (current end of previous end of quarter end of previous
year) quarter (current year) quarter
(current year)
(current year)
------------------------------------------------------------------------------------------------------------------------
Assets
---------------------------------------------------------------------------------------------------------------------
I. Cash, transactions with the
Central Bank 1,709,136 1,451,374 1,808,556 1,913,641
---------------------------------------------------------------------------------------------------------------------
II. Debt securities eligible for
rediscounting at the Central Bank 49,892 47,685 74,774 94,742
---------------------------------------------------------------------------------------------------------------------
III. Dues from the financial sector 2,915,651 4,316,165 7,714,971 8,958,408
---------------------------------------------------------------------------------------------------------------------
1. Short-term dues 2,592,501 3,994,028 7,617,018 8,915,452
---------------------------------------------------------------------------------------------------------------------
a) current account 503,047 642,735 975,058 1,452,205
---------------------------------------------------------------------------------------------------------------------
b) other short-term dues 2,089,454 3,351,293 6,641,960 7,463,247
---------------------------------------------------------------------------------------------------------------------
2. Long-term dues 323,150 322,137 97,953 42,956
---------------------------------------------------------------------------------------------------------------------
IV. Dues from the non-financial
sector 22,312,487 21,054,920 19,332,343 19,280,369
---------------------------------------------------------------------------------------------------------------------
1. Short-term dues 11,916,196 11,570,980 10,841,152 10,824,593
---------------------------------------------------------------------------------------------------------------------
a) current account 3,017,439 2,896,213 3,411,712 3,387,036
---------------------------------------------------------------------------------------------------------------------
b) other short-term dues 8,898,757 8,674,767 7,429,440 7,437,557
---------------------------------------------------------------------------------------------------------------------
2. Long-term dues 10,396,291 9,483,940 8,491,191 8,455,776
---------------------------------------------------------------------------------------------------------------------
V. Dues from the public sector 1,374,663 1,892,377 1,042,110 995,340
---------------------------------------------------------------------------------------------------------------------
1. Short-term dues 657,525 672,648 559,132 605,070
---------------------------------------------------------------------------------------------------------------------
a) current account 52,292 31,866 165,947 110,758
---------------------------------------------------------------------------------------------------------------------
b) other short-term dues 605,233 640,782 393,185 494,312
---------------------------------------------------------------------------------------------------------------------
2. Long-term dues 717,138 1,219,729 482,978 390,270
---------------------------------------------------------------------------------------------------------------------
VI. Receivables from securities
purchased under repurchase
agreements - - - -
---------------------------------------------------------------------------------------------------------------------
VII. Debt securities 13,274,376 12,110,247 10,788,660 10,012,139
---------------------------------------------------------------------------------------------------------------------
VIII. Dues from subsidiaries priced
by equity accounting 57,891 107,521 158,782 204,686
---------------------------------------------------------------------------------------------------------------------
1. Subsidiaries 57,891 64,422 112,559 150,081
---------------------------------------------------------------------------------------------------------------------
2. Inter-related - - - -
---------------------------------------------------------------------------------------------------------------------
3. Affiliated 0 43,099 46,223 54,605
---------------------------------------------------------------------------------------------------------------------
IX. Shares of subsidiary companies
priced by equity accounting 143,930 154,740 161,783 153,610
---------------------------------------------------------------------------------------------------------------------
X. Shares of inter-related
companies priced by equity
accounting - - - -
---------------------------------------------------------------------------------------------------------------------
XI. Shares of affiliated companies
priced by equity accounting 8,961 10,621 18,408 20,274
---------------------------------------------------------------------------------------------------------------------
XII. Shares of other companies 59,183 28,413 30,264 35,014
---------------------------------------------------------------------------------------------------------------------
XIII. Other securities and
financial assets 1,247,524 1,394,975 967,824 882,256
---------------------------------------------------------------------------------------------------------------------
XIV. Intangible assets, including: 468,812 483,966 516,128 537,643
---------------------------------------------------------------------------------------------------------------------
- company goodwill 297,093 311,624 355,384 369,997
---------------------------------------------------------------------------------------------------------------------
XV. Goodwill of subsidiaries 1,325 1,630 1,860 2,080
---------------------------------------------------------------------------------------------------------------------
XVI. Tangible fixed assets 1,073,146 1,091,601 1,197,124 1,172,210
---------------------------------------------------------------------------------------------------------------------
XV. Other assets 384,988 397,001 319,483 231,430
---------------------------------------------------------------------------------------------------------------------
1. Assets acquired for
disposal 2,559 2,559 2,601 2,642
---------------------------------------------------------------------------------------------------------------------
2. Inventory 4,725 4,972 9,969 10,435
---------------------------------------------------------------------------------------------------------------------
3. Other 377,704 389,470 306,913 218,353
---------------------------------------------------------------------------------------------------------------------
XVI. Prepayments and accrued income 962,385 915,629 863,740 853,696
---------------------------------------------------------------------------------------------------------------------
1. Deferred corporate income tax 925,089 867,377 813,737 779,376
---------------------------------------------------------------------------------------------------------------------
2. Other prepayments and accrued
income 37,296 48,252 50,003 74,320
---------------------------------------------------------------------------------------------------------------------
Total assets 46,044,350 45,458,865 44,996,810 45,347,538
---------------------------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------------------------
Liabilities
---------------------------------------------------------------------------------------------------------------------
I. Dues to the central bank 50,012 79,870 146,024 1,046,644
---------------------------------------------------------------------------------------------------------------------
II. Dues to the financial sector 4,984,756 4,735,164 5,210,268 4,847,740
---------------------------------------------------------------------------------------------------------------------
1. Short-term dues 1,970,362 2,938,522 3,805,703 3,229,053
---------------------------------------------------------------------------------------------------------------------
a) current account 676,565 1,029,257 487,753 738,637
---------------------------------------------------------------------------------------------------------------------
b) other short-term dues 1,293,797 1,909,265 3,317,950 2,490,416
---------------------------------------------------------------------------------------------------------------------
2. Long-term dues 3,014,394 1,796,642 1,404,565 1,618,687
---------------------------------------------------------------------------------------------------------------------
III. Dues to the non-financial
sector 26,453,627 26,222,987 27,312,401 27,345,469
---------------------------------------------------------------------------------------------------------------------
1. Short-term dues 25,608,938 25,432,192 26,479,676 26,492,894
---------------------------------------------------------------------------------------------------------------------
a) in the current account,
including: 7,195,162 6,841,795 5,958,449 6,661,431
---------------------------------------------------------------------------------------------------------------------
- savings 3,439,128 3,380,545 2,536,004 2,480,608
---------------------------------------------------------------------------------------------------------------------
b) other short-term dues,
including: 18,413,776 18,590,397 20,521,227 19,831,463
---------------------------------------------------------------------------------------------------------------------
- savings 8,506 10,822 21,376 25,147
---------------------------------------------------------------------------------------------------------------------
2. Long-term dues, including: 844,689 790,795 832,725 852,575
---------------------------------------------------------------------------------------------------------------------
- savings - - - -
---------------------------------------------------------------------------------------------------------------------
IV. Dues to the public sector 3,410,731 3,298,293 3,831,228 3,459,469
---------------------------------------------------------------------------------------------------------------------
1. Short-term dues 3,379,701 3,268,060 3,765,026 3,393,923
---------------------------------------------------------------------------------------------------------------------
a) current account 2,189,357 2,121,344 1,868,521 1,716,540
---------------------------------------------------------------------------------------------------------------------
b) other short-term dues 1,190,344 1,146,716 1,896,505 1,677,383
---------------------------------------------------------------------------------------------------------------------
2. Long-term dues 31,030 30,233 66,202 65,546
---------------------------------------------------------------------------------------------------------------------
V. Liabilities arising from
securities sold under repurchase
agreements 1,161,792 1,505,451 0 341,262
---------------------------------------------------------------------------------------------------------------------
VI. Liabilities from debt
securities issued 149,333 143,298 77,895 76,437
---------------------------------------------------------------------------------------------------------------------
1. short-term 109,518 98,418 70,595 70,155
---------------------------------------------------------------------------------------------------------------------
2. Long-term 39,815 44,880 7,300 6,282
---------------------------------------------------------------------------------------------------------------------
VII. Other liabilities from
financial instruments 1,766,304 1,432,925 983,256 867,363
---------------------------------------------------------------------------------------------------------------------
VIII. Liabilities to controlled
companies priced by equity
accounting 46,624 73,472 63,136 46,199
---------------------------------------------------------------------------------------------------------------------
1. Subsidiaries 46,624 70,373 61,177 44,316
---------------------------------------------------------------------------------------------------------------------
2. Inter-related - - - -
---------------------------------------------------------------------------------------------------------------------
3. Affiliated 0 3,099 1,959 1,883
---------------------------------------------------------------------------------------------------------------------
IX. Special funds and other
liabilities 1,092,690 1,040,431 826,732 786,718
---------------------------------------------------------------------------------------------------------------------
X. Accrued costs and deferred
income including suspended items 896,350 881,397 837,738 789,971
---------------------------------------------------------------------------------------------------------------------
1. Accrued costs 102,912 106,211 182,013 95,704
---------------------------------------------------------------------------------------------------------------------
2. Negative goodwill 241 277 6,557 6,283
---------------------------------------------------------------------------------------------------------------------
3. Other deferred income and
suspended items 793,197 774,909 649,168 687,984
---------------------------------------------------------------------------------------------------------------------
XI. Negative goodwill of
subsidiaries - - - -
---------------------------------------------------------------------------------------------------------------------
XII. Reserves 706,733 787,929 627,250 674,705
---------------------------------------------------------------------------------------------------------------------
1. Deferred corporate income
tax reserve 410,665 457,847 355,585 380,864
---------------------------------------------------------------------------------------------------------------------
2. Other reserves 296,068 330,082 271,665 293,841
---------------------------------------------------------------------------------------------------------------------
a) short-term 43,894 49,070 65,497 72,157
---------------------------------------------------------------------------------------------------------------------
b) long-term 252,174 281,012 206,168 221,684
---------------------------------------------------------------------------------------------------------------------
XIII. Subordinated liabilities - - 3,025 3,027
---------------------------------------------------------------------------------------------------------------------
XIV. Minority shareholders' capital 66,583 64,165 60,752 58,220
---------------------------------------------------------------------------------------------------------------------
XV. Share capital 143,581 143,581 143,581 143,581
---------------------------------------------------------------------------------------------------------------------
XVI. Payments due for share capital
(negative amount) - - - -
---------------------------------------------------------------------------------------------------------------------
XVII. Own shares (negative amount) - - - -
---------------------------------------------------------------------------------------------------------------------
XVIII. Supplementary capital 1,524,271 1,524,109 1,498,474 1,498,473
---------------------------------------------------------------------------------------------------------------------
XIX. Revaluation reserve 75,663 77,203 76,938 72,412
---------------------------------------------------------------------------------------------------------------------
XX. Other reserve capital 3,192,444 3,192,447 3,104,036 3,104,036
---------------------------------------------------------------------------------------------------------------------
XXI. Exchange differences from re-
pricing subsidiaries - - - -
---------------------------------------------------------------------------------------------------------------------
1. Positive exchange
differences - - - -
---------------------------------------------------------------------------------------------------------------------
2. Negative exchange
differences - - - -
---------------------------------------------------------------------------------------------------------------------
XXII. Retained earnings or
uncovered loss brought forward 51,586 51,582 67,892 70,786
---------------------------------------------------------------------------------------------------------------------
XXIII. Net profit (loss) 271,270 204,561 126,184 115,026
---------------------------------------------------------------------------------------------------------------------
Total liabilities 46,044,350 45,458,865 44,996,810 45,347,538
---------------------------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------------------------
Capital adequacy ratio 13.48 13.67 16.70 17.16
---------------------------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------------------------
Book value 5,258,815,000 5,193,483,000 5,017,105,000 5,004,314,000
---------------------------------------------------------------------------------------------------------------------
Number of shares 28,716,230 28,716,230 28,716,230 28,716,230
---------------------------------------------------------------------------------------------------------------------
Book value per share (PLN) 183.13 180.86 174.71 174.27
---------------------------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------------------------
Expected number of shares - - - -
---------------------------------------------------------------------------------------------------------------------
Diluted book value per share (PLN) - - - -
---------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------
as at as at as at as at
OFF-BALANCE SHEET ITEMS 30.09.2003 end of 30.06.2003 30.09.2002 end 30.06.2002
quarter (current end of previous of quarter end of previous
year) quarter (current year) quarter
(current
year) (current year)
------------------------------------------------------------------------------------------------------------------------
I. Off-balance contingencies and
commitments 14,447,815 13,598,784 12,302,343 13,472,130
---------------------------------------------------------------------------------------------------------------------
1. Commitments undertaken: 9,501,214 8,072,308 6,945,717 8,439,094
---------------------------------------------------------------------------------------------------------------------
a) financing 8,429,231 6,971,853 5,591,523 7,221,653
---------------------------------------------------------------------------------------------------------------------
b) guarantees 1,071,983 1,100,455 1,354,194 1,217,441
---------------------------------------------------------------------------------------------------------------------
2. Commitments received: 4,946,601 5,526,476 5,356,626 5,033,036
---------------------------------------------------------------------------------------------------------------------
a) financing 1,471,642 2,090,078 1,859,137 1,499,377
---------------------------------------------------------------------------------------------------------------------
b) guarantees 3,474,959 3,436,398 3,497,489 3,533,659
---------------------------------------------------------------------------------------------------------------------
II. Commitments under buy/sell
transactions 78,816,432 65,591,289 64,470,072 71,522,161
---------------------------------------------------------------------------------------------------------------------
III. Other: 186,890,006 148,802,175 87,002,025 64,388,993
---------------------------------------------------------------------------------------------------------------------
- securities provided as guarantees 781,920 727,821 313,750 1,428,714
---------------------------------------------------------------------------------------------------------------------
- securities received as guarantees
and other collateral reducing
risk-weighed assets 9,443,286 8,406,342 7,767,567 7,486,742
---------------------------------------------------------------------------------------------------------------------
- transactions in securities 4,513,020 1,970,221 4,463,820 1,863,961
---------------------------------------------------------------------------------------------------------------------
- liabilities under transactions in
derivatives 172,151,780 137,697,791 74,456,888 53,609,576
---------------------------------------------------------------------------------------------------------------------
Total off-balance items 280,154,253 227,992,248 163,774,440 149,383,284
---------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------
CONSOLIDATED PROFIT III quarter 3 rd quarter in III quarter 3 rd quarter in
(current accruals accruals
year) (current year) (previous year) (previous year)
AND LOSS ACCOUNT from 01.07.2003 from 01.01.2003 from from
to 30.09.2003 to 01.07.2002 01.01.2002
30.09.2003 to to
30.09.2002 30.09.2002
------------------------------------------------------------------------------------------------------------------------
I. Interest income 595,380 1,844,430 789,264 2,482,014
---------------------------------------------------------------------------------------------------------------------
II. Interest expense -281,186 -927,834 -456,632 -1,569,805
---------------------------------------------------------------------------------------------------------------------
III. Result on interest (I-II) 314,194 916,596 332,632 912,209
---------------------------------------------------------------------------------------------------------------------
IV. Commission income 228,595 613,385 179,748 521,324
---------------------------------------------------------------------------------------------------------------------
V. Commission expense -27,875 -83,162 -21,481 -64,876
---------------------------------------------------------------------------------------------------------------------
VI. Result on commission (IV-V) 200,720 530,223 158,267 456,448
---------------------------------------------------------------------------------------------------------------------
VII. Net sales of products, goods
and materials - - - -
---------------------------------------------------------------------------------------------------------------------
VIII. Cost of products, goods and
materials sold - - - -
---------------------------------------------------------------------------------------------------------------------
IX. Selling costs - - - -
---------------------------------------------------------------------------------------------------------------------
X. Result on sales (VII-VIII-IX) - - - -
---------------------------------------------------------------------------------------------------------------------
XI. Income from shares, interests,
other variable-income securities
and property rights 6,337 45,251 1,063 1,063
---------------------------------------------------------------------------------------------------------------------
1. From subsidiaries - -2,273 - -
---------------------------------------------------------------------------------------------------------------------
2. From inter-related
companies - - - -
---------------------------------------------------------------------------------------------------------------------
3. From affiliates 6,301 44,614 - -
---------------------------------------------------------------------------------------------------------------------
4. From other companies 36 2,910 1,063 1,063
---------------------------------------------------------------------------------------------------------------------
XII. Result on financial operations 25,193 248,840 64,084 69,495
---------------------------------------------------------------------------------------------------------------------
XIII. Foreign exchange result 57,907 167,917 171,551 635,329
---------------------------------------------------------------------------------------------------------------------
XIV. Result on banking operations 604,351 1,908,827 727,597 2,074,544
---------------------------------------------------------------------------------------------------------------------
XV. Other operating income 14,491 43,331 13,344 43,564
---------------------------------------------------------------------------------------------------------------------
XVI. Other operating expense -37,578 -99,622 -31,387 -91,574
---------------------------------------------------------------------------------------------------------------------
XVII. Bank operating costs and
overheads -350,511 -1,053,073 -425,909 -1,139,017
---------------------------------------------------------------------------------------------------------------------
XVIII. Depreciation of fixed assets
and amortisation of intangible
assets -49,958 -180,867 -48,851 -183,597
---------------------------------------------------------------------------------------------------------------------
XIX. Charges to provisions and
adjustments -377,312 -1,100,408 -492,385 -1,215,421
---------------------------------------------------------------------------------------------------------------------
1. Charges to specific
provisions and general risk
provision -377,174 -1,099,321 -492,385 -1,203,192
---------------------------------------------------------------------------------------------------------------------
2. Financial asset re-
pricing -138 -1,087 - -12,229
---------------------------------------------------------------------------------------------------------------------
XX. Release of provisions and
adjustment-related decrease 322,298 895,695 280,289 681,556
---------------------------------------------------------------------------------------------------------------------
1. Release of specific
provisions and general risk
provision 321,544 886,782 280,289 675,432
---------------------------------------------------------------------------------------------------------------------
2. Financial asset re-
pricing 754 8,913 - 6,124
---------------------------------------------------------------------------------------------------------------------
XXI. Difference between provisions
and adjustments (XIX- XX) -55,014 -204,713 -212,096 -533,865
---------------------------------------------------------------------------------------------------------------------
XXII. Operating result 125,781 413,883 22,698 170,055
---------------------------------------------------------------------------------------------------------------------
XXIII. Result on extraordinary
activities - 11 3 111
---------------------------------------------------------------------------------------------------------------------
1. Extraordinary profit - 11 3 112
---------------------------------------------------------------------------------------------------------------------
2. Extraordinary losses - - - -1
---------------------------------------------------------------------------------------------------------------------
XXIV. Write-down of subsidiaries'
goodwill -305 -924 -224 -682
---------------------------------------------------------------------------------------------------------------------
XXV. Write-down of negative
subsidiaries' goodwill - - - -
---------------------------------------------------------------------------------------------------------------------
XXVI. Gross profit (loss) 125,476 412,970 22,477 169,484
---------------------------------------------------------------------------------------------------------------------
XXVII. Corporate income tax -42,406 -124,752 -15,337 -44,770
---------------------------------------------------------------------------------------------------------------------
1. Current -147,122 -320,304 -76,063 -238,253
---------------------------------------------------------------------------------------------------------------------
2. Deferred 104,716 195,552 60,726 193,483
---------------------------------------------------------------------------------------------------------------------
XXVIII. Other obligatory decrease
of profit (increase in loss) - - - -
---------------------------------------------------------------------------------------------------------------------
XXIX. Share of net profits (losses)
of companies valued by equity
accounting -13,359 -7,841 6,307 10,673
---------------------------------------------------------------------------------------------------------------------
XXX. Minority shareholders' profit
(loss) -3,002 -9,107 -2,289 -9,203
---------------------------------------------------------------------------------------------------------------------
XXXI. Net profit (loss) 66,709 271,270 11,158 126,184
---------------------------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------------------------
Net profit (loss) (per annum) - 278,621,000 - 341,731,000
---------------------------------------------------------------------------------------------------------------------
Weighed average number of ordinary
shares - 28,716,230 - 28,716,230
---------------------------------------------------------------------------------------------------------------------
Profit (loss) per ordinary share
(PLN) - 9.70 - 11.90
---------------------------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------------------------
Average weighed diluted number of
ordinary shares - - - -
---------------------------------------------------------------------------------------------------------------------
Diluted profit (loss) per ordinary
share (PLN) - - - -
---------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------
CHANGES IN CONSOLIDATED III quarter 3 rd quarter in III quarter 3 rd quarter in
(current year) accruals accruals
(current year) (previous year) (previous year)
SHAREHOLDERS' FUNDS from 01.07.2003 from 01.01.2003 from from
to 30.09.2003 to 01.07.2002 01.01.2002
30.09.2003 to to
30.09.2002 30.09.2002
------------------------------------------------------------------------------------------------------------------------
I. Shareholders' funds at beginning
of period (opening balance sheet) 5,193,483 5,019,828 5,004,314 5,010,461
---------------------------------------------------------------------------------------------------------------------
a) changes in accounting policies - - -2,894 -11,649
---------------------------------------------------------------------------------------------------------------------
b) correction of material errors - - - -
---------------------------------------------------------------------------------------------------------------------
I.a.Shareholders' funds at
beginning of period (opening
balance sheet) after adjustment to
comparable data 5,193,483 5,019,828 5,001,420 4,998,812
---------------------------------------------------------------------------------------------------------------------
1. Share capital at beginning of
period 143,581 143,581 143,581 143,581
---------------------------------------------------------------------------------------------------------------------
1.1. Changes in share capital - - - -
---------------------------------------------------------------------------------------------------------------------
a) Increase: - - - -
---------------------------------------------------------------------------------------------------------------------
- issue of shares - - - -
---------------------------------------------------------------------------------------------------------------------
b) Decrease - - - -
---------------------------------------------------------------------------------------------------------------------
- share redemption - - - -
---------------------------------------------------------------------------------------------------------------------
1.2. Share capital at period
end 143,581 143,581 143,581 143,581
---------------------------------------------------------------------------------------------------------------------
2. Due payments for initial capital
at beginning of period - - - -
---------------------------------------------------------------------------------------------------------------------
2.1. Change in due payments for
initial capital - - - -
---------------------------------------------------------------------------------------------------------------------
a) increase - - - -
---------------------------------------------------------------------------------------------------------------------
b) decrease - - - -
---------------------------------------------------------------------------------------------------------------------
2.2. Due payments for initial
capital at period end - - - -
---------------------------------------------------------------------------------------------------------------------
3. Own shares at beginning of
period - - - -
---------------------------------------------------------------------------------------------------------------------
a) increase - - - -
---------------------------------------------------------------------------------------------------------------------
b) decrease - - - -
---------------------------------------------------------------------------------------------------------------------
3.1. Own shares at period end - - - -
---------------------------------------------------------------------------------------------------------------------
4. Supplementary capital at
beginning of period 1,524,109 1,499,285 1,498,473 1,483,064
---------------------------------------------------------------------------------------------------------------------
4.1. Changes in supplementary
capital 162 24,986 1 15,410
---------------------------------------------------------------------------------------------------------------------
a) increase 164 24,988 1 15,410
---------------------------------------------------------------------------------------------------------------------
- transfer within
shareholder's funds - - 1 7
---------------------------------------------------------------------------------------------------------------------
- due to sell of HVB
Hipoteczny share 107 107 - -
---------------------------------------------------------------------------------------------------------------------
- allocation of
profit - 24,702 - 15,403
---------------------------------------------------------------------------------------------------------------------
- fixed asset sales 57 179 - -
---------------------------------------------------------------------------------------------------------------------
b) decrease -2 -2 - -
---------------------------------------------------------------------------------------------------------------------
- movement to
minority interest -2 -2 - -
---------------------------------------------------------------------------------------------------------------------
- fixed asset sales - - - -
---------------------------------------------------------------------------------------------------------------------
- issue of
supplementary
capital shares - - - -
---------------------------------------------------------------------------------------------------------------------
4.2. Supplementary capital at
period end 1,524,271 1,524,271 1,498,474 1,498,474
---------------------------------------------------------------------------------------------------------------------
5. Revaluation reserve at beginning
of period 77,203 67,028 72,412 72,455
---------------------------------------------------------------------------------------------------------------------
5.1. Changes in revaluation
reserve -1,540 8,635 4,526 4,483
---------------------------------------------------------------------------------------------------------------------
a) increase -2,507 13,619 5,480 5,586
---------------------------------------------------------------------------------------------------------------------
- changes in accounting
policies - - 386 386
---------------------------------------------------------------------------------------------------------------------
- valuation of available
for sale securities
portfolio -2,507 13,619 5,094 5,094
---------------------------------------------------------------------------------------------------------------------
- tax effect of valuation
of available for sale
securities portfolio - - - 106
---------------------------------------------------------------------------------------------------------------------
b) decrease 967 -4,984 -954 -1,103
---------------------------------------------------------------------------------------------------------------------
- valuation of available
for sale securities
portfolio 1,355 - - -
---------------------------------------------------------------------------------------------------------------------
- tax effect of valuation
of available for sale
securities portfolio -331 -4,805 -953 -1,096
---------------------------------------------------------------------------------------------------------------------
- fixed asset sales -57 -179 -1 -7
---------------------------------------------------------------------------------------------------------------------
5.2. Revaluation reserve at
period end 75,663 75,663 76,938 76,938
---------------------------------------------------------------------------------------------------------------------
6. General banking risk fund at
beginning of period 867,523 779,112 779,112 627,547
---------------------------------------------------------------------------------------------------------------------
6.1. Change in general banking
risk fund -3 88,408 0 151,565
---------------------------------------------------------------------------------------------------------------------
a) increase - 88,411 - 151,565
---------------------------------------------------------------------------------------------------------------------
- allocation of
profit - 88,411 - 151,565
---------------------------------------------------------------------------------------------------------------------
b) decrease -3 -3 - -
---------------------------------------------------------------------------------------------------------------------
- movement to
minority interest -3 -3 - -
---------------------------------------------------------------------------------------------------------------------
6.2. General banking risk fund
at period end 867,520 867,520 779,112 779,112
---------------------------------------------------------------------------------------------------------------------
7. Other reserve capital at
beginning of period 2,324,924 2,324,924 2,324,924 2,293,696
---------------------------------------------------------------------------------------------------------------------
7.1. Change in other reserve
capital - - 0 31,228
---------------------------------------------------------------------------------------------------------------------
a) increase - - 0 31,228
---------------------------------------------------------------------------------------------------------------------
- allocation of
profit - - - 25,000
---------------------------------------------------------------------------------------------------------------------
- tax effect of the
reserve for bank
employee
remuneration under
anniversary awards,
old-age and ill-
health retirement
severance payment
calculated by
actuarial methods - - - 6,228
---------------------------------------------------------------------------------------------------------------------
b) decrease - - - -
---------------------------------------------------------------------------------------------------------------------
7.2. Other reserve capital at
period end 2,324,924 2,324,924 2,324,924 2,324,924
---------------------------------------------------------------------------------------------------------------------
8. Exchange difference from pricing
subsidiaries - - - -
---------------------------------------------------------------------------------------------------------------------
9. Retained earnings (uncovered
loss) brought forward at beginning
of period 51,582 205,898 70,786 390,118
---------------------------------------------------------------------------------------------------------------------
9.1. Retained earnings brought
forward at beginning of period 51,582 205,898 70,786 390,118
---------------------------------------------------------------------------------------------------------------------
a) accounting policy
changes - - -2,894 -11,649
---------------------------------------------------------------------------------------------------------------------
b) material error
correction - - - -
---------------------------------------------------------------------------------------------------------------------
9.2. Retained earnings brought
forward at beginning of
period, adjusted to comparable
data 51,582 205,898 67,892 378,469
---------------------------------------------------------------------------------------------------------------------
9.3. Change in retained
earnings brought forward 4 -154,312 0 -310,089
---------------------------------------------------------------------------------------------------------------------
a) increase 4 4 - -
---------------------------------------------------------------------------------------------------------------------
- previous years'
profit distribution - - - -
---------------------------------------------------------------------------------------------------------------------
- due to sell of HVB
Hipoteczny share 4 4 - -
---------------------------------------------------------------------------------------------------------------------
b) decrease 0 -154,316 0 -310,089
---------------------------------------------------------------------------------------------------------------------
- allocation of
profit - -154,316 - -310,089
---------------------------------------------------------------------------------------------------------------------
9.4. Retained earnings brought
forward at period end 51,586 51,586 67,892 68,380
---------------------------------------------------------------------------------------------------------------------
9.5. Uncovered loss brought
forward at beginning of period - - - -
---------------------------------------------------------------------------------------------------------------------
a) accounting policy
changes - - - -
---------------------------------------------------------------------------------------------------------------------
b) material error
correction - - - -
---------------------------------------------------------------------------------------------------------------------
9.6. Uncovered loss brought
forward at beginning of
period, adjusted to comparable
data - - - -
---------------------------------------------------------------------------------------------------------------------
9.7. Change in uncovered loss
brought forward - - 0 -488
---------------------------------------------------------------------------------------------------------------------
a) increase - - 0 -488
---------------------------------------------------------------------------------------------------------------------
- acquistion of Dom
Maklerski PBK - - 0 -488
---------------------------------------------------------------------------------------------------------------------
b) decrease - - -
---------------------------------------------------------------------------------------------------------------------
9.8. Uncovered loss brought
forward at period end - - 0 -488
---------------------------------------------------------------------------------------------------------------------
9.9. Retained earnings or
uncovered loss brought forward
at period end 51,586 51,586 67,892 67,892
---------------------------------------------------------------------------------------------------------------------
10. Net result 66,709 271,270 11,158 126,184
---------------------------------------------------------------------------------------------------------------------
a) net profit 66,709 271,270 11,158 126,184
---------------------------------------------------------------------------------------------------------------------
b) net loss - - - -
---------------------------------------------------------------------------------------------------------------------
II. Shareholders' funds at period
end (closing balance) 5,054,254 5,258,815 4,902,079 5,017,105
---------------------------------------------------------------------------------------------------------------------
III. Shareholders' funds after
proposed profit distribution (loss
covering) 5,054,254 5,258,815 4,902,079 5,017,105
---------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------
CONSOLIDATED CASH FLOW III quarter 3 rd quarter in III quarter 3 Rd quarter in
(current year) accruals accruals
(current year) (previous year) (previous year)
STATEMENT from 01.07.2003 from 01.01.2003 from from
to 30.09.2003 to 01.07.2002 01.01.2002
30.09.2003 to to
30.09.2002 30.09.2002
------------------------------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------------------------
A. Operating cash flow - indirect
method
---------------------------------------------------------------------------------------------------------------------
I. Net profit (loss) 66,709 271,270 11,158 126,184
---------------------------------------------------------------------------------------------------------------------
II. Total adjustments -899,689 -1,909,967 351,269 350,368
---------------------------------------------------------------------------------------------------------------------
1. Minority shareholders'
profit (loss) 3,002 9,107 2,289 9,203
---------------------------------------------------------------------------------------------------------------------
2. Share of net profit (loss)
of subsidiaries priced by
equity accounting 13,359 7,841 6,307 10,673
---------------------------------------------------------------------------------------------------------------------
3. Write-down 64,596 226,638 63,888 230,728
---------------------------------------------------------------------------------------------------------------------
- write-down of
subsidiaries' goodwill and
negative subsidiaries'
goodwill 305 924 224 682
---------------------------------------------------------------------------------------------------------------------
4. Foreign exchange (profit)
loss 1,591 4,063 1,935 4,811
---------------------------------------------------------------------------------------------------------------------
5. Interest and profit
sharing (dividend) -29,518 32,760 -132,744 -70
---------------------------------------------------------------------------------------------------------------------
6. (Profit) loss on
investment activities 1,470 -36,034 -385 -814
---------------------------------------------------------------------------------------------------------------------
7. Change in reserves -33,279 5,111 -132,267 -34,642
---------------------------------------------------------------------------------------------------------------------
8. Change in inventories 247 3,629 2,573 986
---------------------------------------------------------------------------------------------------------------------
9. Change in debt securities -1,180,656 -3,645,217 -881,308 -3,351,074
---------------------------------------------------------------------------------------------------------------------
10. Change in dues from the
financial sector 1,303,674 4,005,653 755,730 4,908,366
---------------------------------------------------------------------------------------------------------------------
11. Change in dues from the
non-financial and public
sector -700,812 -3,222,000 -80,868 -717,583
---------------------------------------------------------------------------------------------------------------------
12 . Change in receivables
from securities bought under
repurchase agreements 0 0 0 0
---------------------------------------------------------------------------------------------------------------------
13. Change in shares, other
securities and financial
assets 115,825 447,601 -392,850 -389,803
---------------------------------------------------------------------------------------------------------------------
14. Change in dues to the
financial sector -808,391 -1,405,905 431,990 -1,429,283
---------------------------------------------------------------------------------------------------------------------
15. Change in dues to the
non-financial and public
sector 341,413 -22,669 336,420 -146,805
---------------------------------------------------------------------------------------------------------------------
16. Change in liabilities
from securities sold under
repurchase agreements -343,658 1,161,793 -341,263 0
---------------------------------------------------------------------------------------------------------------------
17. Change in liabilities
from securities -357 -1,362 1,619 -11,989
---------------------------------------------------------------------------------------------------------------------
18. Change in other
liabilities 422,368 641,781 264,981 1,010,154
---------------------------------------------------------------------------------------------------------------------
19. Change in accrued costs 12,484 -3,203 241,029 35,122
---------------------------------------------------------------------------------------------------------------------
20. Change in deferred income
and suspended items 13,250 89,527 50,581 95,363
---------------------------------------------------------------------------------------------------------------------
21. Other adjustments -96,297 -209,081 153,612 127,025
---------------------------------------------------------------------------------------------------------------------
III. Net operating cash flow
(I+/-II) - indirect method -832,980 -1,638,697 362,427 476,552
---------------------------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------------------------
B. Cash flow from investment
activities
---------------------------------------------------------------------------------------------------------------------
I. Income 98,836 1,038,861 217,343 1,616,683
---------------------------------------------------------------------------------------------------------------------
1. Sales of subsidiaries'
shares 115 115 0 0
---------------------------------------------------------------------------------------------------------------------
2. Sales of shares of inter-
related companies 0 0 0 0
---------------------------------------------------------------------------------------------------------------------
3. Sales of shares of
affiliated companies 57,033 57,033 0 0
---------------------------------------------------------------------------------------------------------------------
4. Sales of shares of other
companies, other securities
and financial assets 40,300 962,972 194,895 1,560,086
---------------------------------------------------------------------------------------------------------------------
5. Sales of intangible and
tangible fixed assets 1,388 2,108 2,001 4,073
---------------------------------------------------------------------------------------------------------------------
6. Sales of investments in
real-estate and intangible
assets 0 0 0 0
---------------------------------------------------------------------------------------------------------------------
7. Other investment income 0 16,633 20,447 52,524
---------------------------------------------------------------------------------------------------------------------
II. Expense -64,845 -100,115 -109,269 -599,669
---------------------------------------------------------------------------------------------------------------------
1. Purchase of shares of
subsidiaries 0 -330 -42 -22,687
---------------------------------------------------------------------------------------------------------------------
2. Purchase of shares of
inter-related companies 0 0 0 0
---------------------------------------------------------------------------------------------------------------------
3. Purchase of shares of
affiliated companies 0 0 0 0
---------------------------------------------------------------------------------------------------------------------
4. Purchase of other shares,
securities and financial
assets -21,890 -27,404 0 -366,071
---------------------------------------------------------------------------------------------------------------------
5. Purchase of intangible
assets and tangible fixed
assets -42,955 -72,381 -77,082 -178,748
---------------------------------------------------------------------------------------------------------------------
6. Investment in real estate
and intangible assets 0 0 0 0
---------------------------------------------------------------------------------------------------------------------
7. Other investment expense 0 0 -32,145 -32,163
---------------------------------------------------------------------------------------------------------------------
III. Net cash flow from
investment activities (I-II) 33,991 938,746 108,074 1,017,014
---------------------------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------------------------
C. Cash flow from financing
activities
---------------------------------------------------------------------------------------------------------------------
I. Income 1,202,314 1,454,569 0 854,570
---------------------------------------------------------------------------------------------------------------------
1. Long-term loans from banks 1,191,780 1,356,923 0 854,570
---------------------------------------------------------------------------------------------------------------------
2. Long-term loans from other
financial institutions 0 21,890 0 0
---------------------------------------------------------------------------------------------------------------------
3. Issues of debt securities 10,533 35,659 0 0
---------------------------------------------------------------------------------------------------------------------
4. Increase in subordinated
loans 0 0 0 0
---------------------------------------------------------------------------------------------------------------------
5. Net income from own shares
issued and additional
capital payments 0 0 0 0
---------------------------------------------------------------------------------------------------------------------
6. Other financing income 1 40,097 0 0
---------------------------------------------------------------------------------------------------------------------
II. Expense -256,667 -1,133,163 -1,086,004 -1,707,311
---------------------------------------------------------------------------------------------------------------------
1. Repayment of long-term
loans extended by banks -204,418 -1,023,611 -959,756 -1,431,947
---------------------------------------------------------------------------------------------------------------------
2. Repayment of long-term
loans extended by other
financial institutions -230 -15,566 -230 -6,659
---------------------------------------------------------------------------------------------------------------------
3. Debt securities redemption 0 0 0 -78,220
---------------------------------------------------------------------------------------------------------------------
4. On account of other
financial liabilities 0 -7,119 0 -7,659
---------------------------------------------------------------------------------------------------------------------
5. Financial leasing rent
payment -9 -117 -7 -111
---------------------------------------------------------------------------------------------------------------------
6. Decrease in subordinated
debt 0 0 -3 -14
---------------------------------------------------------------------------------------------------------------------
7. Dividend and other
payments to shareholders -40,203 -40,203 -109,122 -109,122
---------------------------------------------------------------------------------------------------------------------
8. Dividend and other profit
sharing paid to minority
shareholders 0 0 0 0
---------------------------------------------------------------------------------------------------------------------
9. Profit distribution
expense other than payments
to shareholders 0 0 0 0
---------------------------------------------------------------------------------------------------------------------
10. Own share buy-back 0 0 0 0
---------------------------------------------------------------------------------------------------------------------
11. Other financial expense -11,807 -46,547 -16,886 -73,579
---------------------------------------------------------------------------------------------------------------------
III. Net cash flow from
financing activities (I-II) 945,647 321,406 -1,086,004 -852,741
---------------------------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------------------------
D. Total net cash flow (A.III+/-
B.III+/-C.III) 146,658 -378,545 -615,503 640,825
---------------------------------------------------------------------------------------------------------------------
E. Balance-sheet change in cash,
including: 146,658 -378,545 -615,503 640,825
---------------------------------------------------------------------------------------------------------------------
- change in cash related to
foreign exchange differences - - - -
---------------------------------------------------------------------------------------------------------------------
F. Cash at beginning of period 2,027,249 2,552,452 3,471,786 2,215,458
---------------------------------------------------------------------------------------------------------------------
G. Cash at period end (F+/- D),
including: 2,173,907 2,173,907 2,856,283 2,856,283
---------------------------------------------------------------------------------------------------------------------
- limited availability cash - - - -
---------------------------------------------------------------------------------------------------------------------
ABBREVIATED QUARTERLY FINANCIAL REPORT
---------------------------------------------------------------------------------------------------------------------
as at as at as at as at
BALANCE SHEET 30.09.2003 end of 30.06.2003 30.09.2002 end 30.06.2002
quarter (current end of previous of quarter end of previous
year) quarter (current year) quarter
(current year)
(current year)
------------------------------------------------------------------------------------------------------------------------
Assets
---------------------------------------------------------------------------------------------------------------------
I. Cash, transactions with the
Central Bank 1,603,923 1,326,209 1,675,929 1,714,113
---------------------------------------------------------------------------------------------------------------------
II. Debt securities eligible for
rediscounting at the Central Bank 48,901 47,289 72,224 91,330
---------------------------------------------------------------------------------------------------------------------
III. Dues from the financial sector 3,071,452 4,007,380 7,711,788 8,818,888
---------------------------------------------------------------------------------------------------------------------
1. Current account 417,509 592,565 973,932 1,465,199
---------------------------------------------------------------------------------------------------------------------
2. Term 2,653,943 3,414,815 6,737,856 7,353,689
---------------------------------------------------------------------------------------------------------------------
IV. Dues from the non-financial
sector 20,473,286 19,409,622 17,889,296 17,924,428
---------------------------------------------------------------------------------------------------------------------
1. Current account 2,952,675 2,829,489 3,341,787 3,317,339
---------------------------------------------------------------------------------------------------------------------
2. Term 17,520,611 16,580,133 14,547,509 14,607,089
---------------------------------------------------------------------------------------------------------------------
V. Dues from the public sector 1,295,246 1,817,395 989,685 953,875
---------------------------------------------------------------------------------------------------------------------
1. Current account 38,690 10,566 153,533 95,887
---------------------------------------------------------------------------------------------------------------------
2. Term 1,256,556 1,806,829 836,152 857,988
---------------------------------------------------------------------------------------------------------------------
VI. Receivables from securities
purchased under repurchase
agreements - - - -
---------------------------------------------------------------------------------------------------------------------
VII. Debt securities 12,264,389 11,354,719 9,745,657 9,013,907
---------------------------------------------------------------------------------------------------------------------
VIII. Shares of subsidiary
companies 464,511 470,888 453,081 437,885
---------------------------------------------------------------------------------------------------------------------
IX. Shares of inter-related
companies - - - -
---------------------------------------------------------------------------------------------------------------------
X. Shares of affiliated companies 8,961 10,621 18,408 20,274
---------------------------------------------------------------------------------------------------------------------
XI. Shares of other companies 55,704 24,834 27,828 32,578
---------------------------------------------------------------------------------------------------------------------
XII. Other securities and financial
assets 1,246,221 1,394,482 967,824 882,250
---------------------------------------------------------------------------------------------------------------------
XIII. Intangible assets, including 466,921 481,732 507,373 527,659
---------------------------------------------------------------------------------------------------------------------
- goodwill 297,093 311,624 355,384 369,997
---------------------------------------------------------------------------------------------------------------------
XIV. Tangible fixed assets 1,021,267 1,037,883 1,141,089 1,116,108
---------------------------------------------------------------------------------------------------------------------
XV. Other assets 409,366 418,450 286,969 229,240
---------------------------------------------------------------------------------------------------------------------
1. Assets acquired for
disposal 2,559 2,559 2,541 2,577
---------------------------------------------------------------------------------------------------------------------
2. Other 406,807 415,891 284,428 226,663
---------------------------------------------------------------------------------------------------------------------
XVI. Prepayments and accrued income 924,298 879,318 815,158 813,470
---------------------------------------------------------------------------------------------------------------------
1. Deferred corporate income tax 889,117 833,321 771,616 741,899
---------------------------------------------------------------------------------------------------------------------
2. Other prepayments and accrued
income 35,181 45,997 43,542 71,571
---------------------------------------------------------------------------------------------------------------------
Total assets 43,354,446 42,680,822 42,302,309 42,576,005
---------------------------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------------------------
Liabilities
---------------------------------------------------------------------------------------------------------------------
I. Dues to the central bank 50,012 79,870 146,024 1,040,644
---------------------------------------------------------------------------------------------------------------------
II. Dues to the financial sector 4,912,322 4,659,079 5,308,105 4,899,927
---------------------------------------------------------------------------------------------------------------------
1. Current account 691,393 937,565 400,773 743,313
---------------------------------------------------------------------------------------------------------------------
2. Term 4,220,929 3,721,514 4,907,332 4,156,614
---------------------------------------------------------------------------------------------------------------------
III. Dues to the non-financial
sector 24,379,257 24,112,181 25,161,849 25,192,013
---------------------------------------------------------------------------------------------------------------------
1. Savings accounts,
including: 3,295,972 3,229,166 2,431,987 2,387,821
---------------------------------------------------------------------------------------------------------------------
a) current 3,295,652 3,228,846 2,431,665 2,387,500
---------------------------------------------------------------------------------------------------------------------
b) term 320 320 322 321
---------------------------------------------------------------------------------------------------------------------
2. Other, including: 21,083,285 20,883,015 22,729,862 22,804,192
---------------------------------------------------------------------------------------------------------------------
a) current 3,648,622 3,342,559 3,299,624 4,052,735
---------------------------------------------------------------------------------------------------------------------
b) term 17,434,663 17,540,456 19,430,238 18,751,457
---------------------------------------------------------------------------------------------------------------------
IV. Dues to the public sector 3,182,813 3,036,171 3,511,453 3,078,916
---------------------------------------------------------------------------------------------------------------------
1. Current account 1,994,277 1,890,825 1,656,385 1,458,431
---------------------------------------------------------------------------------------------------------------------
2. Term 1,188,536 1,145,346 1,855,068 1,620,485
---------------------------------------------------------------------------------------------------------------------
V. Liabilities arising from
securities sold under repurchase
agreements 1,161,792 1,505,451 - 341,262
---------------------------------------------------------------------------------------------------------------------
VI. Liabilities from debt
securities issued 114,018 102,918 77,895 76,437
---------------------------------------------------------------------------------------------------------------------
1. short-term 109,518 98,418 70,595 70,155
---------------------------------------------------------------------------------------------------------------------
2. Long-term 4,500 4,500 7,300 6,282
---------------------------------------------------------------------------------------------------------------------
VII. Other liabilities from
financial instruments 1,755,896 1,429,866 983,256 867,357
---------------------------------------------------------------------------------------------------------------------
VIII. Special funds and other
liabilities 1,067,611 1,009,010 770,745 735,739
---------------------------------------------------------------------------------------------------------------------
IX. Accrued costs and deferred
income including suspended items 811,844 808,946 769,565 733,857
---------------------------------------------------------------------------------------------------------------------
1. Accrued costs 92,905 97,775 168,419 83,312
---------------------------------------------------------------------------------------------------------------------
2. Negative goodwill 241 277 5,823 6,283
---------------------------------------------------------------------------------------------------------------------
3. Other deferred income and
suspended items 718,698 710,894 595,323 644,262
---------------------------------------------------------------------------------------------------------------------
X. Reserves 678,215 769,832 579,552 632,301
---------------------------------------------------------------------------------------------------------------------
1. Deferred corporate income
tax reserve 418,059 474,307 344,824 373,663
---------------------------------------------------------------------------------------------------------------------
2. Other reserves 260,156 295,525 234,728 258,638
---------------------------------------------------------------------------------------------------------------------
a) short-term 42,037 44,452 63,989 69,044
---------------------------------------------------------------------------------------------------------------------
b) long-term 218,119 251,073 170,739 189,594
---------------------------------------------------------------------------------------------------------------------
XI. Subordinated liabilities - - - -
---------------------------------------------------------------------------------------------------------------------
XII. Initial capital 143,581 143,581 143,581 143,581
---------------------------------------------------------------------------------------------------------------------
XIII. Payments due for initial
capital (negative amount) - - - -
---------------------------------------------------------------------------------------------------------------------
XIV. Own shares (negative amount) - - - -
---------------------------------------------------------------------------------------------------------------------
XV. Supplementary capital 1,458,452 1,458,452 1,457,571 1,457,571
---------------------------------------------------------------------------------------------------------------------
XVI. Revaluation reserve 76,763 77,779 73,086 73,086
---------------------------------------------------------------------------------------------------------------------
XVII. Other reserve capital 3,168,265 3,168,265 3,080,654 3,080,654
---------------------------------------------------------------------------------------------------------------------
XVIII. Retained earnings (uncovered
loss) brought forward 117,374 117,374 129,279 129,279
---------------------------------------------------------------------------------------------------------------------
XIX. Net profit (loss) 276,231 202,047 109,694 93,381
---------------------------------------------------------------------------------------------------------------------
Total liabilities 43,354,446 42,680,822 42,302,309 42,576,005
---------------------------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------------------------
Capital adequacy ratio 13.15 13.32 16.25 16.72
---------------------------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------------------------
Book value 5,240,666,000 5,167,498,000 4,993,865,000 4,977,552,000
---------------------------------------------------------------------------------------------------------------------
Number of shares 28,716,230 28,716,230 28,716,230 28,716,230
---------------------------------------------------------------------------------------------------------------------
Book value per share (PLN) 182.50 179.95 173.90 173.34
---------------------------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------------------------
Expected number of shares - - - -
---------------------------------------------------------------------------------------------------------------------
Diluted book value per share (PLN) - - - -
---------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------
as at as at as at as at
OFF-BALANCE SHEET ITEMS 30.09.2003 end of 30.06.2003 30.09.2002 end 30.06.2002
quarter (current end of previous of quarter end of previous
year) quarter (current year) quarter
(current year)
(current year)
------------------------------------------------------------------------------------------------------------------------
I. Off-balance contingencies and
commitments 13,779,179 13,025,943 11,835,198 13,018,957
---------------------------------------------------------------------------------------------------------------------
1. Commitments undertaken: 9,321,230 7,932,669 6,743,958 8,273,418
---------------------------------------------------------------------------------------------------------------------
a) financing 8,250,994 6,834,045 5,407,824 7,074,069
---------------------------------------------------------------------------------------------------------------------
b) guarantees 1,070,236 1,098,624 1,336,134 1,199,349
---------------------------------------------------------------------------------------------------------------------
2. Commitments received: 4,457,949 5,093,274 5,091,240 4,745,539
---------------------------------------------------------------------------------------------------------------------
a) financing 1,118,743 1,801,663 1,764,928 1,393,877
---------------------------------------------------------------------------------------------------------------------
b) guarantees 3,339,206 3,291,611 3,326,312 3,351,662
---------------------------------------------------------------------------------------------------------------------
II. Commitments under buy/sell
transactions 79,286,591 66,133,159 64,620,610 71,443,978
---------------------------------------------------------------------------------------------------------------------
III. Other: 185,817,744 147,523,120 86,711,591 64,182,277
---------------------------------------------------------------------------------------------------------------------
securities provided as guarantees 240,656 270,635 313,750 1,428,686
---------------------------------------------------------------------------------------------------------------------
securities received as guarantees
and other collateral reducing
risk-weighed assets 8,731,948 7,935,609 7,487,006 7,280,054
---------------------------------------------------------------------------------------------------------------------
transactions in securities 4,498,758 1,921,530 4,453,947 1,863,961
---------------------------------------------------------------------------------------------------------------------
liabilities under transactions in
derivatives 172,346,382 137,395,346 74,456,888 53,609,576
---------------------------------------------------------------------------------------------------------------------
Total off-balance items 278,883,514 226,682,222 163,167,399 148,645,212
---------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------
PROFIT AND LOSS ACCOUNT III quarter 3 rd quarter in III quarter 3 rd quarter in
(current year) accruals accruals
(current year) (previous year) (previous year)
from 01.07.2003 from 01.01.2003 from from
to 30.09.2003 to 01.07.2002 01.01.2002
30.09.2003 to to
30.09.2002 30.09.2002
------------------------------------------------------------------------------------------------------------------------
I. Interest income 536,198 1,661,858 708,412 2,218,532
---------------------------------------------------------------------------------------------------------------------
II. Interest expense -261,190 -862,122 -419,860 -1,442,890
---------------------------------------------------------------------------------------------------------------------
III. Result on interest (I-II) 275,008 799,736 288,552 775,642
---------------------------------------------------------------------------------------------------------------------
IV. Commission income 211,905 565,989 172,012 483,257
---------------------------------------------------------------------------------------------------------------------
V. Commission expense -21,167 -65,648 -20,571 -54,353
---------------------------------------------------------------------------------------------------------------------
VI. Result on commission (IV-V) 190,738 500,341 151,441 428,904
---------------------------------------------------------------------------------------------------------------------
VII. Income from shares, interests,
other variable-income securities
and property rights 6,337 45,251 1,063 1,063
---------------------------------------------------------------------------------------------------------------------
1. From subsidiaries - -2,273 - -
---------------------------------------------------------------------------------------------------------------------
2. From inter-related
companies - - - -
---------------------------------------------------------------------------------------------------------------------
3. From affiliates 6,301 44,614 - -
---------------------------------------------------------------------------------------------------------------------
4. From other companies 36 2,910 1,063 1,063
---------------------------------------------------------------------------------------------------------------------
VIII. Result on financial
operations 27,598 245,678 63,971 69,236
---------------------------------------------------------------------------------------------------------------------
IX. Foreign exchange result 47,760 149,859 166,637 621,695
---------------------------------------------------------------------------------------------------------------------
X. Result on banking operations 547,441 1,740,865 671,664 1,896,540
---------------------------------------------------------------------------------------------------------------------
XI. Other operating income 11,424 35,137 11,328 35,843
---------------------------------------------------------------------------------------------------------------------
XII. Other operating expense -33,695 -89,227 -28,627 -82,242
---------------------------------------------------------------------------------------------------------------------
XIII. Bank operating costs -320,802 -963,208 -396,887 -1,049,250
---------------------------------------------------------------------------------------------------------------------
XIV. Depreciation of fixed assets
and amortisation of intangible
assets -47,121 -172,390 -45,784 -174,510
---------------------------------------------------------------------------------------------------------------------
XV. Charges to provisions and
adjustments -345,974 -1,002,584 -445,566 -1,106,451
---------------------------------------------------------------------------------------------------------------------
1. Charges to specific
provisions and general risk
provision -345,936 -1,001,954 -445,566 -1,094,747
---------------------------------------------------------------------------------------------------------------------
2. Financial asset re-
pricing -38 -630 - -11,704
---------------------------------------------------------------------------------------------------------------------
XVI. Release of provisions and
adjustment-related decrease 299,622 820,992 247,582 608,957
---------------------------------------------------------------------------------------------------------------------
1. Release of specific
provisions and general risk
provision 298,868 812,079 247,582 602,833
---------------------------------------------------------------------------------------------------------------------
2. Financial asset re-
pricing 754 8,913 - 6,124
---------------------------------------------------------------------------------------------------------------------
XVII. Difference between provisions
and adjustments (XV- XVI) -46,352 -181,592 -197,984 -497,494
---------------------------------------------------------------------------------------------------------------------
XVIII. Operating result 110,895 369,585 13,710 128,887
---------------------------------------------------------------------------------------------------------------------
XIX. Result on extraordinary
activities 0 11 3 111
---------------------------------------------------------------------------------------------------------------------
1. Extraordinary profit - 11 3 112
---------------------------------------------------------------------------------------------------------------------
2. Extraordinary losses - - - -1
---------------------------------------------------------------------------------------------------------------------
XX. Gross profit (loss) 110,895 369,596 13,713 128,998
---------------------------------------------------------------------------------------------------------------------
XXI. Corporate income tax -27,898 -106,528 -10,688 -51,449
---------------------------------------------------------------------------------------------------------------------
1. Current -140,153 -298,506 -69,242 -212,277
---------------------------------------------------------------------------------------------------------------------
2. Deferred 112,255 191,978 58,554 160,828
---------------------------------------------------------------------------------------------------------------------
XXII. Other obligatory decrease of
profit (increase in loss) - - - -
---------------------------------------------------------------------------------------------------------------------
XXIII. Share of net profits
(losses) of companies valuated by
equity accounting -8,813 13,163 13,288 32,145
---------------------------------------------------------------------------------------------------------------------
XXIV. Net profit (loss) 74,184 276,231 16,313 109,694
---------------------------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------------------------
Net profit (loss) (per annum) - 296,129,000 - 314,865,000
---------------------------------------------------------------------------------------------------------------------
Weighed average number of ordinary
shares - 28,716,230 - 28,716,230
---------------------------------------------------------------------------------------------------------------------
Profit (loss) per ordinary share
(PLN) - 10.31 - 10.96
---------------------------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------------------------
Average weighed diluted number of
ordinary shares - - - -
---------------------------------------------------------------------------------------------------------------------
Diluted profit (loss) per ordinary
share (PLN) - - - -
---------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------
CHANGES IN III quarter 3 rd quarter in III quarter 3 rd quarter in
(current year) accruals accruals
(current year) (previous year) (previous year)
SHAREHOLDERS' FUNDS from 01.07.2003 from 01.01.2003 from from
to 30.09.2003 to 01.07.2002 01.01.2002
30.09.2003 to to
30.09.2002 30.09.2002
------------------------------------------------------------------------------------------------------------------------
I. Shareholders' funds at beginning
of period (opening balance sheet) 5,167,498 4,995,042 4,977,552 4,945,234
---------------------------------------------------------------------------------------------------------------------
a) changes in accounting policies - - 51,356
---------------------------------------------------------------------------------------------------------------------
b) correction of material errors - - - -
---------------------------------------------------------------------------------------------------------------------
I.a. Shareholders' funds at
beginning of period (opening
balance sheet) after adjustment to
comparable data 5,167,498 4,995,042 4,977,552 4,996,590
---------------------------------------------------------------------------------------------------------------------
1. Share capital at beginning of
period 143,581 143,581 143,581 143,581
---------------------------------------------------------------------------------------------------------------------
1.1. Changes in share capital - - - -
---------------------------------------------------------------------------------------------------------------------
a) Increase: - - - -
---------------------------------------------------------------------------------------------------------------------
- issue of shares - - - -
---------------------------------------------------------------------------------------------------------------------
b) Decrease - - - -
---------------------------------------------------------------------------------------------------------------------
'- share redemption - - - -
---------------------------------------------------------------------------------------------------------------------
1.2. Share capital at period
end 143,581 143,581 143,581 143,581
---------------------------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------------------------
4. Supplementary capital at
beginning of period 1,458,452 1,458,346 1,457,571 1,457,571
---------------------------------------------------------------------------------------------------------------------
4.1. Changes in supplementary
capital 0 106 0 0
---------------------------------------------------------------------------------------------------------------------
a) increase 0 106 0 0
---------------------------------------------------------------------------------------------------------------------
- fixed asset sales 106 - -
---------------------------------------------------------------------------------------------------------------------
b) decrease - - - -
---------------------------------------------------------------------------------------------------------------------
- fixed asset sales - - - -
---------------------------------------------------------------------------------------------------------------------
4.2. Supplementary capital at
period end 1,458,452 1,458,452 1,457,571 1,457,571
---------------------------------------------------------------------------------------------------------------------
5. Revaluation reserve at beginning
of period 77,779 66,273 73,086 73,123
---------------------------------------------------------------------------------------------------------------------
5.1. Changes in revaluation
reserve -1,016 10,490 - -37
---------------------------------------------------------------------------------------------------------------------
a) increase -805 15,401 - 106
---------------------------------------------------------------------------------------------------------------------
- valuation of
available for sale
securities
portfolio -805 15,401 - -
---------------------------------------------------------------------------------------------------------------------
- tax effect of
valuation of
available for sale
securities
portfolio - - - 106
---------------------------------------------------------------------------------------------------------------------
b) decrease -211 -4,911 - -143
---------------------------------------------------------------------------------------------------------------------
- fixed asset sales - -106 - -
---------------------------------------------------------------------------------------------------------------------
- tax effect of
valuation of
available for sale
securities
portfolio -211 -4,805 -143
---------------------------------------------------------------------------------------------------------------------
5.2. Revaluation reserve at
period end 76,763 76,763 73,086 73,086
---------------------------------------------------------------------------------------------------------------------
6. General banking risk fund at
beginning of period 843,341 755,730 755,730 613,472
---------------------------------------------------------------------------------------------------------------------
6.1. Change in general banking
risk fund 0 87,611 0 142,258
---------------------------------------------------------------------------------------------------------------------
a) increase 0 87,611 0 142,258
---------------------------------------------------------------------------------------------------------------------
- allocation of
profit - 87,611 - 142,258
---------------------------------------------------------------------------------------------------------------------
b) decrease - - - -
---------------------------------------------------------------------------------------------------------------------
6.2. General banking risk fund
at period end 843,341 843,341 755,730 755,730
---------------------------------------------------------------------------------------------------------------------
7. Other reserve capital at
beginning of period 2,324,924 2,324,924 2,324,924 2,293,696
---------------------------------------------------------------------------------------------------------------------
7.1. Change in other reserve
capital - - 0 31,228
---------------------------------------------------------------------------------------------------------------------
a) increase - - 0 31,228
---------------------------------------------------------------------------------------------------------------------
- allocation of
profit - - 25,000
---------------------------------------------------------------------------------------------------------------------
- tax effect of the reserve
for bank employee remuneration under
anniversary awards, old-age and
ill-health retirement severance
pay calculated by actuarial methods 6,228
---------------------------------------------------------------------------------------------------------------------
b) decrease - - - -
---------------------------------------------------------------------------------------------------------------------
7.2. Other reserve capital at
period end 2,324,924 2,324,924 2,324,924 2,324,924
---------------------------------------------------------------------------------------------------------------------
8. Retained earnings brought
forward at beginning of period 117,374 246,188 129,767 363,791
---------------------------------------------------------------------------------------------------------------------
8.1. Retained earnings brought
forward at beginning of period 117,374 246,188 129,767 363,791
---------------------------------------------------------------------------------------------------------------------
a) accounting policy
changes - - 51,356
---------------------------------------------------------------------------------------------------------------------
b) material error
correction - - - -
---------------------------------------------------------------------------------------------------------------------
8.2. Retained earnings brought
forward at beginning of
period, adjusted to comparable
data 117,374 246,188 129,767 415,147
---------------------------------------------------------------------------------------------------------------------
8.3. Change in retained
earnings brought forward 0 -128,814 0 -285,380
---------------------------------------------------------------------------------------------------------------------
a) increase - - -
---------------------------------------------------------------------------------------------------------------------
b) decrease 0 -128,814 0 -285,380
---------------------------------------------------------------------------------------------------------------------
- allocation of
profit -128,814 -285,380
---------------------------------------------------------------------------------------------------------------------
8.4. Retained earnings brought
forward at period end 117,374 117,374 129,767 129,767
---------------------------------------------------------------------------------------------------------------------
8.5. Uncovered loss brought
forward at beginning of period - - -
---------------------------------------------------------------------------------------------------------------------
a) accounting policy
changes - - - -
---------------------------------------------------------------------------------------------------------------------
b) material error
correction - - - -
---------------------------------------------------------------------------------------------------------------------
8.6. Uncovered loss brought
forward at beginning of
period, adjusted to comparable
data - - - -
---------------------------------------------------------------------------------------------------------------------
8.7. Change in uncovered loss
brought forward - - 0 -488
---------------------------------------------------------------------------------------------------------------------
a) increase - - 0 -488
---------------------------------------------------------------------------------------------------------------------
- acquistion of Dom
Maklerski PBK - - -488
---------------------------------------------------------------------------------------------------------------------
b) decrease - - - -
---------------------------------------------------------------------------------------------------------------------
8.8. Uncovered loss brought
forward at period end - - -488 -488
---------------------------------------------------------------------------------------------------------------------
8.9. Retained earnings or
uncovered loss brought forward
at period end 117,374 117,374 129,279 129,279
---------------------------------------------------------------------------------------------------------------------
9. Net result 74,184 276,231 16,313 109,694
---------------------------------------------------------------------------------------------------------------------
a) net profit 74,184 276,231 16,313 109,694
---------------------------------------------------------------------------------------------------------------------
b) net loss - - - -
---------------------------------------------------------------------------------------------------------------------
II. Shareholders' funds at period
end (closing balance) 5,038,619 5,240,666 4,900,484 4,993,865
---------------------------------------------------------------------------------------------------------------------
III. Shareholders' funds after
proposed profit distribution (loss
covering) 5,038,619 5,240,666 4,900,484 4,993,865
---------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------
CASH FLOW STATEMENT III quarter 3 rd quarter in III quarter 3 rd quarter in
(current year) accruals accruals
(current year) (previous year) (previous year)
from 01.07.2003 from 01.01.2003 from from
to 30.09.2003 to 01.07.2002 01.01.2002
30.09.2003 to to
30.09.2002 30.09.2002
------------------------------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------------------------
A. Operating cash flow - indirect
method
---------------------------------------------------------------------------------------------------------------------
I. Net profit (loss) 74,184 276,231 16,313 109,694
---------------------------------------------------------------------------------------------------------------------
II. Total adjustments -847,888 -1,772,544 552,073 490,495
---------------------------------------------------------------------------------------------------------------------
1. Share of net profit
(loss) of subsidiaries
priced by equity
accounting 8,813 -13,163 13,288 32,145
---------------------------------------------------------------------------------------------------------------------
2. Depreciation 61,146 216,068 60,397 218,349
---------------------------------------------------------------------------------------------------------------------
3. Foreign exchange
(profit) loss - - - -
---------------------------------------------------------------------------------------------------------------------
4. Interest and profit
sharing (dividend) -27,395 38,181 -105,406 39,656
---------------------------------------------------------------------------------------------------------------------
5. (Profit) loss on
investment activities 1,681 -35,461 -957 -1,150
---------------------------------------------------------------------------------------------------------------------
6. Change in reserves -35,369 828 -23,909 -45,090
---------------------------------------------------------------------------------------------------------------------
7. Change in debt
securities -890,116 -3,054,195 -749,001 -3,212,809
---------------------------------------------------------------------------------------------------------------------
8. Change in dues from the
financial sector 745,369 3,372,706 615,471 4,600,912
---------------------------------------------------------------------------------------------------------------------
9. Change in dues from the
non-financial and public
sector -543,549 -2,822,273 17,428 -400,806
---------------------------------------------------------------------------------------------------------------------
10 . Change in receivables
from securities bought
under repurchase
agreements - - - -
---------------------------------------------------------------------------------------------------------------------
11. Change in shares, other
securities and financial
assets 115,896 443,306 -76,017 -389,803
---------------------------------------------------------------------------------------------------------------------
12.Change in dues to the
financial sector -684,656 -1,675,583 466,822 -1,345,646
---------------------------------------------------------------------------------------------------------------------
13. Change in dues to the
non-financial and public
sector 413,288 103,295 401,447 -237,339
---------------------------------------------------------------------------------------------------------------------
14. Change in liabilities
from securities sold under
repurchase agreements -343,658 1,161,793 -341,263 -
---------------------------------------------------------------------------------------------------------------------
15. Change in liabilities
from securities 567 685 1,458 -10,120
---------------------------------------------------------------------------------------------------------------------
16. Change in other
liabilities 424,834 625,998 260,026 981,682
---------------------------------------------------------------------------------------------------------------------
17. Change in accrued costs 10,816 -1,324 28,029 48,649
---------------------------------------------------------------------------------------------------------------------
18. Change in deferred
income and suspended items 2,897 65,396 35,709 84,829
---------------------------------------------------------------------------------------------------------------------
19. Other adjustments -108,452 -198,801 -51,449 127,036
---------------------------------------------------------------------------------------------------------------------
III. Net operating cash flow
(I+/-II) - indirect method -773,704 -1,496,313 568,386 600,189
---------------------------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------------------------
B. Cash flow from investment
activities
---------------------------------------------------------------------------------------------------------------------
I. Income 58,272 779,093 91,215 1,022,595
---------------------------------------------------------------------------------------------------------------------
1. Sales of subsidiaries'
shares 115 115 - -
---------------------------------------------------------------------------------------------------------------------
2. Sales of shares of inter-
related companies - - - -
---------------------------------------------------------------------------------------------------------------------
3. Sales of shares of
affiliated companies 57,033 57,033 - -
---------------------------------------------------------------------------------------------------------------------
4. Sales of shares of other
companies, other securities
and financial assets - 704,344 70,702 973,762
---------------------------------------------------------------------------------------------------------------------
5. Sales of intangible and
tangible fixed assets 1,124 1,510 1,067 2,165
---------------------------------------------------------------------------------------------------------------------
6. Sales of investments in
real-estate and intangible
assets - - -
---------------------------------------------------------------------------------------------------------------------
7. Other investment income - 16,091 19,446 46,668
---------------------------------------------------------------------------------------------------------------------
II. Expense -63,827 -90,520 -105,792 -223,986
---------------------------------------------------------------------------------------------------------------------
1. Purchase of shares of
subsidiaries - -330 -42 -22,687
---------------------------------------------------------------------------------------------------------------------
2. Purchase of shares of
inter-related companies - - - -
---------------------------------------------------------------------------------------------------------------------
3. Purchase of shares of
affiliated companies - - - -
---------------------------------------------------------------------------------------------------------------------
4. Purchase of other shares,
securities and financial
assets -21,890 -21,890 - -
---------------------------------------------------------------------------------------------------------------------
5. Purchase of intangible
assets and tangible fixed
assets -41,937 -68,300 -73,605 -169,154
---------------------------------------------------------------------------------------------------------------------
6. Investment in real estate
and intangible assets - - -
---------------------------------------------------------------------------------------------------------------------
7. Other investment expense - - -32,145 -32,145
---------------------------------------------------------------------------------------------------------------------
III. Net cash flow from
investment activities (I-II) -5,555 688,573 -14,577 798,609
---------------------------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------------------------
C. Cash flow from financing
activities
---------------------------------------------------------------------------------------------------------------------
I. Income 1,122,715 1,334,874 0 854,570
---------------------------------------------------------------------------------------------------------------------
1. Long-term loans from banks 1,112,182 1,277,325 - 854,570
---------------------------------------------------------------------------------------------------------------------
2. Long-term loans from other
financial institutions - 21,890 - -
---------------------------------------------------------------------------------------------------------------------
3. Issues of debt securities 10,533 35,659 - -
---------------------------------------------------------------------------------------------------------------------
4. Increase in subordinated
loans - - - -
---------------------------------------------------------------------------------------------------------------------
5. Net income from own shares
issued and additional
capital payments - - - -
---------------------------------------------------------------------------------------------------------------------
6. Other financing income - - - -
---------------------------------------------------------------------------------------------------------------------
II. Expense -256,721 -976,706 -1,084,624 -1,699,549
---------------------------------------------------------------------------------------------------------------------
1. Repayment of long-term
loans extended by banks -204,122 -868,205 -959,756 -1,428,638
---------------------------------------------------------------------------------------------------------------------
2. Repayment of long-term
loans extended by other
financial institutions -230 -15,566 -230 -6,659
---------------------------------------------------------------------------------------------------------------------
3. Debt securities redemption - - - -78,220
---------------------------------------------------------------------------------------------------------------------
4. On account of other
financial liabilities - -7,119 - -7,659
---------------------------------------------------------------------------------------------------------------------
5. Financial leasing rent
payment - - - -
---------------------------------------------------------------------------------------------------------------------
6. Decrease in subordinated
debt - - - -
---------------------------------------------------------------------------------------------------------------------
7. Dividend and other
payments to shareholders -40,203 -40,203 -109,122 -109,122
---------------------------------------------------------------------------------------------------------------------
8. Profit distribution
expense other than payments
to shareholders - - - -
---------------------------------------------------------------------------------------------------------------------
9. Own share buy-back - - - -
---------------------------------------------------------------------------------------------------------------------
10. Other financial expense -12,166 -45,613 -15,516 -69,251
---------------------------------------------------------------------------------------------------------------------
III. Net cash flow from
financing activities (I-II) 865,994 358,168 -1,084,624 -844,979
---------------------------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------------------------
D. Total net cash flow (A.III+/-
B.III+/-C.III) 86,735 -449,572 -530,815 553,819
---------------------------------------------------------------------------------------------------------------------
E. Balance-sheet change in cash,
including: 86,735 -449,572 -530,815 553,819
---------------------------------------------------------------------------------------------------------------------
- change in cash related to
foreign exchange differences - - - -
---------------------------------------------------------------------------------------------------------------------
F. Cash at beginning of period 1,892,312 2,428,619 3,153,746 2,069,112
---------------------------------------------------------------------------------------------------------------------
G. Cash at period end (F+/- D),
including: 1,979,047 1,979,047 2,622,931 2,622,931
---------------------------------------------------------------------------------------------------------------------
- limited availability cash - - - -
---------------------------------------------------------------------------------------------------------------------
