BONJOUR!

YVES DRIEUX

CEO BNP PARIBAS POLAND

Jeudi, 23 Janvier, 2003

Why foreign banks are investing in Poland?Why foreign banks are investing in Poland?

☞Large market & geography

☞Support global/regional client

☞Political & regulatory framework

☞European convergence

☞Potential growth

Banks assets are mainly managed by Banks assets are mainly managed by foreign banksforeign banks

STRATEGIES

universal

group

Non retail group

Market share for loans and deposits

0% 10% 20%

PKO BP

PKO SA

BPH PBK

Citi Handlowy

ING Slaski

Big Bank

Kredyt Bank

BZ WBK

ABN Amro

DB

BNP Paribas

Soc Gen

deposits loans

•opportunistic

•global

•regional

•specialized

Global Bank’s predominant Global Bank’s predominant business modelbusiness model

Retail Banking

Domestic Retail

Banking

Retail Financial Services

International Retail Banking

Corporate and Investment Banking

Asset Management and Services

Advisory & Capital Markets

Specialised Financing Corporate

Banking Securities Services

Insurance

Private Banking

Asset Management

CLIENT’S COVERAGE•Corporate•Institutions•Banks•Industries

CORPORATE & CORPORATE & INVESTMENT BANKINGINVESTMENT BANKING

BOOK MANAGEMENT•Credit•Sales•Hedging

•Energy & Commodities

•Trade Finance

•Export Finance

•Project Finance

•Syndications

•Structured Finance

•Origination

•Corporate Finance

•Cash Management

•Equity, debt, interest,

FX, Sales & Trading

Corporate & Investment Corporate & Investment Bank’s Business modelBank’s Business model

Investing in PolandInvesting in Poland

•What resource?

•What constraints?

Secure an internal decision!

Awareness

Contribution to group growth & results

Sponsoring of business lines

Group’s strategy

Investing in PolandInvesting in Poland

Industrialize your processes & MIS

Mass processing

Outsourcing

European platforms (Back Office, Systems, Booking)

Telecom, Intranet, Internet

Network

Investing in PolandInvesting in Poland

COMPLY!

Local, international & group regulations

Code of ethics

Know your clients and transactions

Be prepared to be audited!

Investing in PolandInvesting in Poland

Master your risks to be competitive!

•Get the best limits!

•Utilize it!

•Control it!

Sovereign risk

Country risk

Operational risk

Reputation risk

Market risk

Counterparty risk

Investing in PolandInvesting in Poland

The most important: give great care to your human resources!Jobs are not only to be offered, but also to be marketed:

•Values of the group

•Strategy of the bank

•Mission & objectives

•Training & coaching

•Career development

Current gap between offer & demand:

•Senior client coverage

•Market, credit & operational risk skills

•MIS project management & controlling

….Initiative, autonomy, professionalism….

Values : Demanding Standardsalues : Demanding Standards Values : Demanding Standardsalues : Demanding Standards

Ethics

- Corporate governance

- Compliance

- Sustainable development

Transparency

– Clients

– Shareholders

– Employees

Corporate values

– Commitment

– Ambition

– Responsiveness

– Creativity

Get profitable & recurrent business:Get profitable & recurrent business:

•Daily, budget and business plan positive stress!

•Constantly evolving landscape

•Rely upon your team: trust & control

•Clients, clients, clients…..

•39 mio inhabitants and EU accession: substantial sources of revenue for banks?

• Retail banking

•Asset management

Structured products

•Consumer banking

•Business solutions:

hedging, cash mgt, structured financing

Main growth engines

for PolandKeys to success

•A long term vision

•A global & skilled team with values

•Reassess, review, question your business

Build up a healthy business

Franchise

Market share

Efficiency

Cost to income

Solvency

Risk/equity

Performance

ROE

Rating

Recurrent performance

Market Capitalization

Make your future

Markets:Markets:Solid Prospects for Medium-term GrowthSolid Prospects for Medium-term Growth

Markets:Markets:Solid Prospects for Medium-term GrowthSolid Prospects for Medium-term Growth

Fast-growing new markets:- credit derivatives- alternative mgt- fund admin,...

Retail banking (Europe)

Capital market activities, Savings and investment

Stronger influence of capital markets,

customer sophistication

GDP and credit growth +4 to 5%

+8 to 12%Population ageing

expanding markets

>15%

Growth drivers Growth drivers

Markets Markets

Growth trends Growth trends

Future is uncertain…Future is uncertain…

•Mergers, synergies, industrialization

•Bankinsurance doesn’t seem to be a model

•New players

•Weakening systems:Japan, Germany

•New regulations might affect current competition

•Crisis: countries, global group

•reputation

Market capitalization (Bio Eur)Market capitalization (Bio Eur)

Leading Banks in Euro ZoneLeading Banks in Euro Zone

0 25 50 75 100 125

HSBC

RBoS

Lloyds TSB

UBS

Barclays

BNP Paribas

HBOS

Deutsche Bank

SCH

Credit Suisse

BBVA

SocGen

Fortis

ABN Amro

Credit Lyonnais

Credit Agricole

Unicredit

2001 2002

Leading Banks in Euro ZoneLeading Banks in Euro Zone

0.21.1

1.5

2.22.4

2.4

2.52.6

2.73.0

3.53.9

4.0

4.0

5.9HSBC

BNP ParibasLoyds TSB

BarclaysUBS

RBOS

HBOSFortis

SCHABN Amro

BBVA

Soc GenCredit Agricole

Credit SuisseDeutsche Bank

Net Income in 2001 Net Income in 2001 (Bio Eur)(Bio Eur)

MERCI!