Prospectus - Notowania

markets recorded in 2007 (Croatia, Turkey, Bulgaria and Romania). The Corporate
segment in particular profited from the growth in operating lease volumes, while the
Private segment was driven by strong performances in Germany and Austria.
( in millions of Euros) % Change
Operating costs (Reclassified)
Retail
Corporate
Private Banking
Asset Management
Markets & Investment Banking
Poland's Markets
Central Eastern Europe (CEE)
Parent Company and other companies*
Total
2008
(7,319)
(2,039)
(892)
(508)
(1,421)
(1,060)
(2,233)
(1,220)
(16,692)
2007
Reconstructed
(7,327)
(1,975)
(895)
(652)
(1,611)
(972)
(1,729)
(995)
(16,156)
2006
(5,220)
(1,651)
(718)
(616)
(1,543)
(1,031)
(1,520)
(959)
(13,258)
2008/2007
-0.1%
3.2%
-0.3%
-22.1%
-11.8%
9.1%
29.1%
22.6%
3.3%
2007/2006
40.4%
19.6%
24.7%
5.8%
4.4%
-5.7%
13.8%
3.8%
21.9%
* Includes netting and write-downs. The item Parent Company and other companies includes Q4 of the former Capitalia Group
for the 2007 financial year.
The breakdown of operating costs per business segment shows that those which
suffered the most as a result of the market trends managed to lower operating costs,
although to a disproportionate extent.
Operating costs in the Retail segment were stable compared to the previous year but
down by 3% net of extraordinary effects (reform of Employee Severance Indemnity in
2007 and harmonisation of contributions for former Capitalia banks), thanks to
significant savings in Austria (-9%) and in Germany (-3%). The increase in the
Corporate segment (+3.3%) was due almost exclusively to staff expenses through
which, it should be specified however, 2007 was able to benefit from the positive
effect of the reform of Employee Severance Indemnity. The Private Banking segment
was essentially stable which, if considered net of changes in the perimeter, due to the
consolidation of Wealth Capital Management, and the effects of the reform of
Employee Severance Indemnity, would have recorded a decrease (-5% on a
homogeneous basis). The reduction in the Asset Management segment (-22%) was
due to the fall in both staff expenses and in other administrative expenses, partially
offset by the growth in amortisation and depreciation. Markets & Investment Banking
managed to achieve a reduction of € 190 million (-11.8%) due to more stringent cost
management which is even more significant in light of the general market conditions.
The increase registered by the Poland’s Markets segment was predominantly down to
the revaluation of the Zloty. Finally, as regards the CEE segment, growth was partly
connected with the expansion of the area involved. On a like-for-like basis, the
increase would equal 15%, however well below the growth in revenues, and mainly
linked to the network expansion program and investments aimed at developing
additional inter-regional synergies.
In 2007, operating costs remained essentially stable net of the costs relating to
Capitalia. Net of Capitalia, staff expenses recorded a decrease of 1.5%, also thanks to
the positive effect of the reform of Employee Severance Indemnity and the BA
pension fund, while total other expenses saw a 3.5% increase, partly due to expenses
for the development of CEE country networks.
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