Poland

In 2004 we profited both from the growth of the banking market and from our own efforts and innovative strength. We successfully introduced the new brand (and logo) of Bank BPH in the first quarter of 2004. The new brand name is the result of comprehensive market research aimed at creating a Polish name that can be easily understood and recognised, while using the Group design. With a market share of 10% Bank BPH is the third largest bank in Poland.

The gratifying strong growth in net income before taxes of 68%, from € 128.7 m in 2003 to € 216.6 m in 2004, is mainly due to a 34% increase in net interest income, reflecting positive margin trends and visibly higher business volumes – loans to corporates and retail customers rose by 20% (in euro terms), and deposits were 24% higher. Strict risk management led to a 10% lower provisioning charge. Income from services continued to grow as a result of good progress made in the areas of mortgage loans, consumer lending, credit card business, project finance and transactional banking. Lower general administrative expenses reflected active cost management. In a ranking of Poland’s 50 largest banks, Bank BPH was voted “leading universal bank”.

The bank as a partner for loans under EU assistance programmes
In mid-2004 Bank BPH set up an EU Office to act as a link between the bank’s sales units and the EU institutions responsible for assistance programmes. The EU Office coordinates cooperation with EU advisory centres at a central and regional level and trains sales staff to sell EU-related products. As the business partner of its customers, Bank BPH continually adapts its range of products to customers’ needs by implementing new solutions and improving existing ones, and thus optimally fulfils the requirements of modern banking in an enlarged Europe.

From 2004 to 2006 the European Union will provide Poland alone with financial assistance of almost € 13 bn. Municipalities, companies, NGOs, farmers, educational institutions and hospitals are applying for subsidies. Bank BPH provides intermediate financing as investments have to be financed in advance and costs are refunded by the EU after completion of the projects.