Prospectus - Notowania

segment recorded a similar trend, benefiting from sustained growth in loans to
customers.
( in millions of Euros) % Change
Income from brokerage and other
income (Reclassified) 2008
- 236 -
2007
Reconstructed 2006 2008/2007 2007/2006
Retail 3,678 4,091 3,007 -10.1% 36.1%
Corporate 1,574 1,697 1,442 -7.2% 17.7%
Private Banking 840 1,029 775 -18.4% 32.8%
Asset Management 1,035 1,522 1,302 -32.0% 17.0%
Markets & Investment Banking (2,264) 1,504 1,958 -250.5% -23.2%
Poland's Markets 866 945 925 -8.4% 2.1%
Central Eastern Europe (CEE) 1,668 1,216 1,043 37.2% 16.6%
Parent Company and other
companies* 84 379 152 -77.8% 148.7%
Total 7,481 12,383 10,604 -39.6% 16.8%
* Includes netting and write-downs.
The deterioration in the financial markets, which partly favoured growth in direct
deposits, had a heavy impact on trading and other income, not only in terms of the
losses recorded in trading income, but also lower fee and commission flows,
especially in terms of assets under management. On the whole, trading and other
income stood at € 7,481 million, down by 39.6% compared with the reconstructed
year including Capitalia.
The trend per business segment shows a heavy loss incurred by Markets & Investment
Banking, whose income fell from € 1,504 million to € -2,264 million.
The main components of trading and other income, or the trading, hedging and fair
value income and net fees and commissions, both fell in the period in question; in
particular, trading, hedging and fair value income moved from a profit in the previous
period to a loss of almost € 2 billion and net fees and commissions recorded a drop of
15% in relative terms but € 1.6 billion in absolute terms.
As regards trading, hedging and fair value income, the reasons for the loss were
predominantly attributable to the Markets & Investment Banking business segment
which, in all its lines of business, suffered from the negative market trend in 2008.
The business segment, which in 2007 recorded income of € 827 million, registered a
loss of € 2,586 million in 2008, especially in the fourth quarter as a result of the
gradual erosion of its revenues and simultaneous write-down of its assets. The
performance of activities in the Business Market line and, in particular, the credit
related segment, affected the end result.