Prospectus - Notowania

and Romania). Growth in the Poland’s Markets (+8.8%) business segment was, by
contrast, partly due to the trend in the exchange rate.
The increase registered by the Markets & Investment Banking (+39.0%) business
segment was also significant, which despite feeling the effects of a lower contribution
from dividends from private equity funds, affected by the market crisis, was able to
benefit from strengthening in Investment Banking (in particular, in relation to
financing), from results derived from interest rate risk management and the impact of
the reclassification effected following changes to IAS 39.
Although the contribution from the Private Banking business segment to the overall
total of net interest income fell (3%), it did record growth of 19.8% in its own net
interest income, driven by the increase in the volumes of deposits and repos deriving
from the customer’s preference for more liquid products.
The Corporate business segment recorded an increase of 10.7%, due to a rise in loans
to customers based on a selective approach aimed at improving the profitability of
capital used. The performance of the main countries in which the business segment
operates was almost homogeneous and the result of an increase in loans sustained by
consistent growth in deposits. In 2008, the segment was also able to benefit from
growth in leasing activities (+15.5% as regards net interest income). This result was
obtained thanks to the combination of units in Italy, Germany and Austria with
companies in the CEE, which allowed the group to transfer products and specific
know how and implement cross-border commercial strategies.
The Retail business segment saw a 6.1% increase, due to an expansion in the spread
on deposits in the presence of moderate growth in volumes, especially in the first part
of the year. In terms of net interest income, the result is also tied to a lower risk
propensity on the part of customers due to uncertainty in the financial markets, which
drove growth in direct deposits to the detriment of indirect deposits. In 2008, Germany
and Austria both consolidated their retail position.
With regards to the 2007 results, although the changes were of little significance
owing to the consolidation of Capitalia, it should be pointed out that the Retail
segment benefited from the increase in trading volumes and a rise in interest rates (the
1-month Euribor rose by 116 basis points compared to the 2006 average). Despite a
context of significant competition on the international markets, the result of the
Corporate segment benefited from the positive trend in volumes and the
aforementioned rise in reference interest rates. Despite being relatively high, growth
in the Private Banking business segment did not have an altogether decisive impact on
the Group's results. Its growth was due mainly to greater use of money market
products by its main customers.
The significant increase in the Markets & Investment Banking business segment in
2007 was driven mainly by Investment Banking activities, the Fixed Income area in
management of interest rates and dividends from private equity funds.
In 2007, the CEE business segment saw substantial growth, thanks to the favourable
development in loans and deposits, in particular in the Retail and Corporate markets in
Russia, the Czech Republic, Bosnia and Croatia. The Poland’s Market business
- 235 -