BONJOUR YVES DRIEUX CEO BNP PARIBAS POLAND Jeudi

BONJOUR! YVES DRIEUX CEO BNP PARIBAS POLAND Jeudi, 23 Janvier, 2003

Why foreign banks are investing in Poland? ☞Large market & geography ☞Support global/regional client ☞Potential growth ☞Political & regulatory framework ☞European convergence

Banks assets are mainly managed by foreign banks Market share for loans and deposits STRATEGIES universal • opportunistic group • global • regional • specialized Non retail group

Global Bank’s predominant business model Domestic Retail Banking Retail Financial Services International Retail Banking Advisory & Capital Markets Corporate and Investment Banking Specialised Financing Private Banking Asset Management and Services Asset Management Corporate Banking Insurance Securities Services

Corporate & Investment Bank’s Business model CLIENT’S COVERAGE • Energy & Commodities • Corporate • Institutions • Banks • Industries • Trade Finance • Export Finance • Project Finance • Origination • Corporate Finance CORPORATE & INVESTMENT BANKING • Syndications • Cash Management • Equity, debt, interest, FX, Sales & Trading • Structured Finance BOOK MANAGEMENT • Credit • Sales • Hedging

Investing in Poland • What resource? • What constraints? üSecure an internal decision! Awareness Contribution to group growth & results Sponsoring of business lines Group’s strategy

Investing in Poland üIndustrialize your processes & MIS Mass processing Outsourcing European platforms (Back Office, Systems, Booking) Telecom, Intranet, Internet Network

Investing in Poland 4 COMPLY! Local, international & group regulations Code of ethics Know your clients and transactions Be prepared to be audited!

Investing in Poland Master your risks to be competitive! Country risk Sovereign risk Operational risk • Get the best limits! • Utilize it! Counterparty risk • Control it! Market risk Reputation risk

Investing in Poland The most important: give great care to your human resources! Jobs are not only to be offered, but also to be marketed: • Values of the group • Strategy of the bank • Mission & objectives • Training & coaching • Career development Current gap between offer & demand: • Senior client coverage • Market, credit & operational risk skills • MIS project management & controlling …. Initiative, autonomy, professionalism….

Values : Demanding Standards Ethics - Corporate governance - Compliance - Sustainable development Transparency – Clients – Shareholders – Employees Corporate values – Commitment – Ambition – Responsiveness – Creativity

Get profitable & recurrent business: • Daily, budget and business plan positive stress! • Constantly evolving landscape • Rely upon your team: trust & control • Clients, clients…. . • 39 mio inhabitants and EU accession: substantial sources of revenue for banks?

Main growth engines Keys to success for Poland • Retail banking • A long term vision • Asset management • A global & skilled team with values Structured products • Reassess, review, question your business • Consumer banking • Business solutions: hedging, cash mgt, structured financing Build up a healthy business Franchise Efficiency Solvency Market share Cost to income Risk/equity Performance ROE Rating Market Capitalization Recurrent performance Make your future

Markets: Solid Prospects for Medium-term Growth drivers Markets Growth trends Stronger influence of capital markets, customer sophistication Fast-growing new markets: - credit derivatives - alternative mgt - fund admin, . . . >15% Population ageing expanding markets GDP and credit growth Capital market activities, Savings and investment Retail banking (Europe) +8 to 12% +4 to 5%

Future is uncertain… • Mergers, synergies, industrialization • Bankinsurance doesn’t seem to be a model • New players • Weakening systems: Japan, Germany • New regulations might affect current competition • Crisis: countries, global group • reputation

Leading Banks in Euro Zone Market capitalization (Bio Eur)

Leading Banks in Euro Zone Net Income in 2001 (Bio Eur)

MERCI!