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 group opportunistic global regional specialized Non retail group

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

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

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

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

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

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

The most important: give great care to your human resources! 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 Transparency Clients Shareholders Employees Ethics - Corporate governance - Compliance - Sustainable development Corporate values Commitment Ambition Responsiveness Creativity

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

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

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