Prospectus - Notowania

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Group Results
More specifically, current account deposits rose by 24.7% on an annual basis in Germany, by 15.4% y/y in Italy and by
19.5% y/y in Austria. On the other hand, the total deposit growth rate varied in the three reference countries with steady
growth in Italy (+15.1% y/y in August 2009), and a gradual slowdown in both Germany and Austria where total deposit growth
was +5.3% and +2.8% y/y respectively. The differences were largely attributable to time deposit performance in Germany,
and more generally, the performance of deposits other than current account deposits in Austria, which were down on an
annual basis by 6.4% and 4.0% y/y respectively. Finally, in Italy bank bonds continued to grow at a healthy pace of +15.4%
y/y in August.
In recent months, the reduction in bank rates has also continued, and these rates are starting to reflect the reduction in
official rates, although only to a partial extent and with differences between the three countries. To be specific, the decline in
rates on bank loans still appears to be less evident in Germany than in Austria, and especially in Italy. As a result, in Germany
bank spreads (the difference between lending and deposit rates) continued to rise with a level of 3.43% in August 2009, up
from 2.76% at the end of last year. On the other hand, there was a particularly sharp reduction in bank spreads in Austria (at
1.81% in August 2009, down from 2.34% in December 2008) and in Italy where the spread between the average lending rate
and average deposit rate stood at 3.13% in August, which was a ten-year low (the spread was 4.10% in December 2008).
In Q3 2009 stock markets solidified the recovery that started in Q2, due to a widespread improvement in stock prices in all
sectors and the strong recovery reflected in financial sector indices. At the end of September 2009, stock exchanges in all
three of the Group's reference countries reported increases close to (for the Italian stock exchange) or in excess of 20% (for
the German and Austrian stock exchanges) over Q2. Looking at stock performance from the beginning of the year, it can be
seen that the overall index was up by 18% for the Italian stock exchange, up by 20.6% for the German stock exchange and
by 50.6% for the Austrian stock exchange.
The mutual fund market also showed signs of recovery, but at a much slower growth rate. Compared to December 2008, in
Q3 mutual fund balances were up 5% in Italy, 7.6% in Austria and about 9% in Germany. Looking at the net inflow of funds
since the beginning of the year, in August 2009 this measure totaled €5.7 billion in Germany and €441 million in Austria. In
Italy from January to September 2009, there was still a net outflow of funds of €7.6 billion; however, after Q1 which saw
heavy outflows of funds, there was a net inflow throughout Q3, especially in funds registered abroad.
With regard to the CEE region, at the beginning of 2009, the banking sector, which has been under pressure due to slow
volume growth, and to a greater extent, due to the deterioration in loan quality, showed that it is able to react in a relatively
efficient manner. In H1 2009 all banking sectors in CEE countries reported profits (due to stable income and a significant
reduction in costs) with the exception of the Baltic countries, Ukraine and Kazakhstan. In these three areas, the ratio of loans
made to deposits is significantly higher than 100%, and thus, these areas are dependent on foreign funding. In the Baltic
countries, Latvia, which has the joint support of the IMF and the EU, continues to be a cause for concern, but it is set to suffer
an enormous economic slowdown, which is one of the worst in the world. The exchange rate parity will continue to be under
pressure. In Ukraine, several signs of improvement were seen in the area of exports and industrial production in recent
months, but the banking sector is faced with a visible deterioration in loan quality. Several small banks in Ukraine that are
having obvious problems have fallen under government control, and several banks in foreign hands have been recapitalized.
On the other hand, in Kazakhstan, two of the country's largest banks, which have also fallen under government control this
year, have been forced to plan the restructuring of their foreign debt.
These situations are even more indicative of a growing gap between stronger countries (especially those in Central Europe
that are ready to resume their growth trend, which this time will be driven by foreign demand) and the aforementioned
countries (which represent about 10% of the regional GDP) that have greater exposure to the international crisis and the
deterioration of the economic and banking environment.