GENERAL MEETING DRAFT - Bankier.pl

Key Ratios and Indicators
CENTRAL EASTERN EUROPE
2009 CONSOLIDATED REPORTS AND ACCOUNTS
2009 2008 AMOUNT %
EVA (€ million) 46 767 -721 - 94.0%
Absorbed Capital (€ million) 6,671 6,692 -21 - 0.3%
RARORAC 0.69% 11.46% n.s.
Operating Income/RWA (avg) 6.40% 6.32% 7bp
Cost/Income 42.3% 47.0% -472bp
Cost of Risk 2.87% 0.90% 197bp
Tax rate 18.5% 21.0% -245bp
Staff Numbers
CENTRAL EASTERN EUROPE
YEAR CHANGE
AS AT CHANGE ON DEC '08
12.31.2009 09.30.2009 12.31.2008 AMOUNT %
Full Time Equivalent (KFS group 100%) 52,337 52,771 56,066 -3,729 - 6.7%
Full Time Equivalent (KFS Group proportional) 42,580 42,906 45,884 -3,304 - 7.2%
The market-driven relative slowdown in business and revenue growth was very quickly and effectively
counterbalanced by strict cost management: operating costs of €1,949 million in 2009 therefore
effectively decreased by 2.9% at constant rates and by as much as 12.3% at current rates even though
they now reflect the full effect of the branch expansion program implemented in 2008. Overall cost
efficiency thus further improved substantially as seen in the cost-income ratio of only 42.3% for 2009,
compared to the 47.0% reported last year.
Reflecting the adverse market conditions and, as a consequence, an even more prudent provisioning
policy, loan provisions had to be increased in 2009, to €1,718 million, more than three times the amount
booked in 2008. The cost of risk ratio (in percent of average loan volume) thus increased to 2.87%, up
from 0.90% in the previous year.
Due to this rise in risk provisions, and including the effect of lower profit and loss on investments
compared to the prior year (which included i.a. the proceeds from the sale of some subsidiaries), CEE net
profit of €740 million for 2009 reached only approximately half of last year’s contribution to the Group
results, but still represents a solid performance in an economically challenging environment.
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In 2009 overall initiatives in CEE Corporate Banking included common projects with Risk Management.
including a specific program to assist clients in evaluating their liquidity needs. Within this framework, the
CEE banks carry out a tailor-made action plan to help their clients cope with the difficult environment.
Additionally, in response to the worsening economic environment, a project for more proactive
management of existing corporate loan exposures in the CEE countries was started, aiming at further
enhancement of the credit risk monitoring process.
After the implementation of the Global Transaction Banking (GTB) product line across the CEE Division in
2008, results in 2009 have been positive, with a growth trend over 2008 despite the economic turmoil.
Integration between local Corporate Banking and GTB units led to improved service and a wider product
range for our customers.
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