Prospectus - Notowania

amounting to € 1,222 million in absolute terms or to 13.9%, which can be linked to
both the net interest income and the net fees and commissions. Similar trends have
affected the performance of the Poland’s Markets and CEE business segments, while
Private Banking and Asset Management have specifically undergone the effects of the
reduction in net fees and commissions caused by the trends in managed and
administered savings. The results posted by CIB are decidedly higher than the same
period of the previous years, thanks mainly to the recovery obtained by the brokerage
components and in particular the net trading, hedging and fair value income.
Moving on to examine the main income components, as mentioned above, it is
reported that during the first nine months of 2009 the net interest income experienced
an erosion (-4.4%) mainly attributable to the trends in interest rates in the two years
which led to a widening of spread in the first nine months of 2008 compared to the
opposite phenomenon of narrowing experienced in 2009.
(in millions of Euro) % Change
Net interest income (Reclassified) 30.09.2009 30.09.2008 2009/2008
Retail 4,870 5,601 -13.1%
Corporate & Investment Banking 5,925 5,179 14.4%
Private Banking 218 250 -12.8%
Asset Management 10 40 -75.0%
Central Eastern Europe (CEE) 2,238 2,297 -2.6%
Poland's Market 657 1,021 -35.7%
Parent company and other companies* (410) (259) 58.3%
Total 13,508 14,129 -4.4%
* Including netting and write-downs.
The Retail business segment, of which the downturn amounted to € 731 million, was
adversely affected by the negative performance of the net interest income, caused by
the sharp fall in interest rates, which intensified in Q3, bringing the EURIBOR to alltime
minimum levels (at the end of September, the 1-month EURIBOR fell below the
threshold of 50 basis points with an average decrease of 400 basis points in the first
nine months of 2009 compared to the same period of the previous year). This
phenomenon of progressive reduction of the market rates meant that it was impossible
to control the cost of customer deposits and this in turn had a negative effect on the
profitability of the Retail segment arising from the spread in deposits. A further factor
which caused a contraction in the net interest income, on the loans side, is represented
by the effect of the measures concerning abolition of the maximum overdraft
commission which penalised the Q3 results. These effects have modified the net
interest income’s contribution to the operating income for Q3 2009 to 64.4%
compared to the 63.7% recorded in the same period of the previous year.
The Private Banking net interest income has also been adversely affected by the same
trends, even if the volumes involved are different. In 2008 net interest income had
benefited from the distribution of dividends by companies of the Wealth Capital
Group located in Germany.
The reduction in the Poland’s Markets net interest income partly derives from the
exchange rate effect, that is, from depreciation of the Zloty against the Euro. The
trends in market rates, which have led to a progressive increase in costs of deposits
against a contraction in interest income, have had a considerable effect on Poland’s
Markets.
- 243 -