Structured Finance and Financial Institutions Department / February 2005 1

February 2005

PKO IN A NUTSHELL

Structured Finance and Financial Institutions Department / February 2005 2

Total Assetsof Polish Banks

0

50

100

150

200

250

300

350

400

450

500

1999 2000 2001 2002 2003

bn PLN

Structured Finance and Financial Institutions Department / February 2005 3

PKO Bank Polski

Overview

85 years of tradition

Largest branch network in Poland(1 266 own branches, 2 725 agencies)

Ratings: Moody’s: Long-Term A2, Short-Term P-1

Capital Intelligence: LT BBB+, ST A2

Standard & Poors: Long-Term BBBpi

PKO is handling 5,5 mio accounts for

individual customers

5,4 mio banking cards issued

Structured Finance and Financial Institutions Department / February 2005 4

Retail banking

Private and corporate lending

Foreign exchange

International settlements

Trade finance

Brokerage

Leasing

Internet banking

PKO Productsand Services

Structured Finance and Financial Institutions Department / February 2005 5

Bank’s Organization

Specialist Units 13 Regional CorporateBranches

B ra n ch B ra n ch B ra n ch

12 Regional RetailBranches

H ead O ffice

M anag em ent Bo ard

Supervisory B oardCorporate Centres: 70

Branches: 1266

December, 2004

Structured Finance and Financial Institutions Department / February 2005 6

PKO Group PKO/Credit Suisse Mutual Fund - mutual fund created in co-operation with Credit Suisse in July 1997. PKO was the first bank in Poland which obtained The Security Commission’s permission to sell units through the banking network

Bankowy PTE S.A. - wholly-owned common pension fund established in August 1998 in order to conduct activity within the so-called second pillar of social security system

BANKOWY Fundusz Leasingowy S.A. - leasing subsidiary created in February 1999

PKO Inwestycje S.A. - investment company, specializing in big developmental projects, established in 2001

eService - electronic payment (cards) settlements centre established in August 1999 (as the third one on the market)

Inteligo Financial Services S.A. - internet banking services

Structured Finance and Financial Institutions Department / February 2005 7

PKO Growth1991-2004

Balance Sheet Total

in PLN bn(nominal value)

€ 1 = PLN 4.0 (Feb 05)8,05 10,32

13,4417,85

27,868

36,54

47,88

58,2360,53

69,25

79,2582,0284,42

87,42

0

10

20

30

40

50

60

70

80

90

100

1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004

Structured Finance and Financial Institutions Department / February 2005 8

PKO’s privatisation

Changes in the ownership structure

51,0%

10,5%

29,2%

8,5%

0,8%

State Treasury employees domestic investors

foreign investors additional pool

Offer structure

22,1%

34,3%

41,6%

2,0%

Foreign investors Domestic institutional inverstors

Individual investors Additional pool

11 X

Launch of PKO BP stock sales to holders of privatization

deposits

21 X

Announcing of the official price range for the shares

22 X - 3 XI

Individuals subscribing to shares in the brokerage

houses

22 X - 3 XI

Registration of shares purchase statement from

institutional investors

3 XI

Setting of the share price

6 XI

Allocation of shares to individual investors during the

special stock exchange session

10 XI

Date of PKO BP's first listing at the Warsaw Stock

Exchange

Structured Finance and Financial Institutions Department / February 2005 9

Client Base

Over 5.5 million personal current accounts

Ca. 2.6 million savings books

Ca. 440 thousand corporate accounts - mainly small

and medium size companies December 2004

Structured Finance and Financial Institutions Department / February 2005 10

Personal Current Accounts

PKO market shareDecember 2004

34,0%

14,0%8,0%

7,5%6,5%

6,5%

23,5%

PKO BP SA Pekao SA Bank BPH BZ WBK

ING BSK BRE Bank Others

Source: IBnGR

Structured Finance and Financial Institutions Department / February 2005 11

Personal Internet Bank Accounts

PKO market share

December 2004

13,8%

22,5%

14,2%11,0%

7,3%

31,2%

Inteligo PKO BP mbank BZ WBK Pekao SA Bank BPH Others

Structured Finance and Financial Institutions Department / February 2005 12

PKO’s Position in the

Polish Banking Market

(estimations)

No 1 in terms of assets - ca 17% of the banking sector (September 2004)

No 1 in terms of capital - ca 15% of the banking sector (September 2004)

No 1 in terms of outlets *( 3 991 outlets, including agencies)- ca 40% of the market (December 2004)

No 1 in terms of current accounts for individuals - ca 34% of the market (December 2004)

No 1 in terms of credits granted - ca 14% of the

market (December 2004)

No 1 in cash and payment cards issued

(5,44 million) – ca.25% of the market (December 2004)

No 1 in number of ATMs - 1785 installed machines, ca 22% of the market (December 2004)

* without co-operative banks

Structured Finance and Financial Institutions Department / February 2005 13

Total AssetsSeptember 2004

0

10000

20000

30000

40000

50000

60000

70000

80000

90000

PKO BP Pekao Bank BPH Citibank ING BSK BRE Bank

mio PLN

Structured Finance and Financial Institutions Department / February 2005 14

Net Profits – 3rd quarter of 2004

0

200

400

600

800

1000

1200

1400

PKO BP Pekao Bank BPH BZ WBK Citibank

mio PLN

Structured Finance and Financial Institutions Department / February 2005 15

Ratio Analysis 2002 2003 I-IX 2004*

(C/I ratio) 62,90% 65,76% 67,18%

ROA 1,30% 1,43% 1,75%

ROE 22,27% 20,05% 20,94%**

Capital adequacy ratio 13,15% 15,04% 16,73%

Profit (loss) before taxation mil PLN

1 429 1 634 1 803

Profit (loss) after taxation mil PLN

1 051 1 228 1 514

Total assets mil PLN 82 018 84 372 87 426

*data not audited **ROE net computed as proportion of net profit/ (loss) for the 12 month period to the arithmetic average of equity (including profits brought forward and profit for the year) at the beginning and at the end of the period

Structured Finance and Financial Institutions Department / February 2005 16

DEPARTAMENT FINANSOWANIA STRUKTURALNEGO I INSTYTUCJI FINANSOWYCH

ul. Puławska 1500-975 Warszawa

tel: (48 22) 521 80 67fax.: (48 22) 521 80 68