Levon Hampartzoumian - CEO BULBANK London, December 5 th, nd UCI INVESTOR DAY Focus on New Europe

2 Agenda Why Bulgaria ? Bulbank Key Highlights Key projects and strategies

3 Year 2001 Bulgaria Population, mln Inflation rate, % Per Capita GDP, Eur 1, E Real GDP growth, % Ref. interest rate Inflation rate, % E Ref. interest rate, % E S&P country rating BB+ WHY BULGARIA? Macroeconomic stability Low inflation Currency board providing for monetary discipline Increasing sovereign rating GDP growth over av.NE and av.EU Low inflation Stable interest rates Low-cost manufacturing, opportunity for de-localisation Source: NE Research Network and Bulbank, based on BNB statistics.

4 Fast increase in volumes with high growth potential Intensified lending in the last 1.5 year, 33% growth in 2001, 40% expected in 2002 Retail volumes grow faster than corporate ones Competition driving spreads down E E BANKING SECTOR GROWING FAST, WITH GREAT POTENTIAL 272 EU 580 Branches per mln inhabitants (Loans+Deposits)/GDP Privatisation of banking sector almost completed. The last one, SSB (13% market share in asset terms), to be privatised in early More than 80% of assets now owned by foreign investors High concentration, >45% of assets and deposits held by the 3 largest banks Relatively low efficiency (71% in 2001) Fast growing and improving banking sector yet still low penetration and underdeveloped markets Bulgaria 45% EU 203% Bulgaria 2004E Rate on Loans (2), % Rate on Dep. (2), % Spread (2), % (2) End-of-period Banking System data; rates calculated on local currency denominated Loans and Deposits (1) Nominal growth Loans growth (1), % Deposits growth (1), % Source: NE Research Network and Bulbank, based on BNB statistics.

5 Agenda Why Bulgaria ? Bulbank Key Highlights Key projects and strategies

6 Affluent 37% Large 50% Mid and small 11% Private 38% Total Assets mkt share Deposits mkt share Loans mkt share o/w Corporate loans Loans/Deposits, % Total revenues Net Income mkt share Cost/Income, % ROE, % Branches Employees Customers o/w retail o/w corporate THE LEADING BANK IN BULGARIA Euro mln (1), as at Sep 02, IAS BULBANK (1) Eur 1 = Bgn 1.96, Bgn is pegged to Euro under the Currency Board arrangement. (2) ROE and cost/income compared only with 10 largest banks. MARKET SHARES as of Dec. 01 1, % 1,029 21% 256 9% % % , , ,000 31,000 Ranking (2) 31 Dec 01 1 st 2 nd 1 st 3 rd 4 th Leader by size Leader by efficiency Low credit risk, thus good potential for growth Distinctive corporate profile Unravelled leadership in top segments Good positions in mid and small business segment Well developed balanced branch network

7 POSITIVE PERFORMANCE IN 2002, 15% GROWTH IN OPERATING INCOME AND 45% GROWTH IN FEE INCOME 23% growth in net income for growth in core business revenues Operating income and profitability growth due to 45% increase in fee income (for launch of new products and cross selling thanks to increase of salesforce) offsetting 11% drop in net interest margin (for the fall in international interest rates) Tight cost control benefiting from UCI synergy C/I Ratio improved from 45% to 39% Operating Income (IAS, Euro mln) Total Revenues Operating Costs 9M % 9M % 9M % 9M M M M % 9M % 9M M M % 9M01 6 Net Interest Income Net Fee Income Other Operating Income

8 BULBANK 13.5 Net Income (provision adjusted), y/y % ch. 5.0 Banking System BULBANK -2.8 Operating costs, y/y % ch. 8.9 Banking System 45.1 Net Fee Income, y/y % ch Banking System BULBANK 38.9 Cost /Income, % 60.4 Banking System BULBANK AHEAD OF THE SYSTEM IN TERMS OF REVENUE GROWTH, PROFITABILITY AND EFFICIENCY BULBANK 14.7 Net Operating Income, y/y % ch. 9.4 Banking System NOTE: Figures as at end of Sept Data for the banking system is under NAS. Figures from Bulbank under NAS would be generally slightly better than under IAS, and respectively 16.1% for Net Income, 9.3% for Net Op. Income, 35.7% for Cost/Income, 47.3% for Net Fee Income, 1.7% for Operating costs and 2.7% for ROAA BULBANK 2.2 ROAA, % 1.6 Banking System (As at September 2002)

9 Net NPLs and Doubtful Loans as % of Total Loans (eop, Euro mln) 6.5% M02 2.8% 0.43% 0.36% 142% Q02 restated 152% 65.0% 85.3% Coverage ratios Doubtful Loans/ Total Loans NPLs/ Total Loans On Gross Doubtful Loans On Gross NPLs* Improved loan-book quality due to successful work outs Improvement of coverage ratios Conservative provisioning, covering also regular exposures calculated on the basis of risk by sector ASSET QUALITY IMPROVING, WITH INCREASED COVERAGE RATIOS Total doubtful loans o/w NPLs Dec % ch. (Euro mln) Sept. 2002

10 Agenda Why Bulgaria ? Bulbank Key Highlights Key projects and strategies

11 KEY PROJECTS RESULTS (1) New commercial approach implemented with dedicated sales people by segment Accountability and target setting Value added, fee based package products launch Retail reinforcement – loans, utilities, cards, asset management MBO and sales stimulation programs introduction UCI synergy use Cost cutting New investment policy Credit underwriting New IT Controlling MARKED ACHIEVEMENTS WITHIN THE PARTNERSHIP PROGRAMME WITH UCI 230 new sales people 44% increase in no. of customers >60% growth in revenues >80% growth in fee income >16K packages sold >20% growth in the amount of cross- border payments 25% Net fee income/Revenues (19.4% in 2000 and 21% in 2001) 150% Net fee income/Personnel costs 200 people with MBO >2mn cost saving Negotiation power increase Low risk of securities portfolio NPL/Loans halved down to below 5% New IT implementation by mid-2003 Tight monitoring on all levels with new approach and sophisticated tools (1) Compared to pre-acquisition period (2000). REVENUES COSTS RISK & OPERATIONS

12 Dec No. of customers (eop, in ths.) 259 Sept.02 Dec No. of salesforce (eop) 58 Sept No. of active customers (eop, in ths.) 31 Sept.02 Dec.01 10,305 No. of products sold (1) 12,013 10M STRONG COMMERCIAL APPROACH EXPANDING BUSINESS AND IMPROVING PRODUCTIVITY Dec No. of salesforce (eop) 180 Sept ,213 No. of contacts (2) 16,655 10M02 RETAIL CORPORATE (1) Including packages, consumer loans, mortgages and intl.cards. (2) Meetings.

13 AMBITIOUS STRATEGIC PLAN BUSINESS STRATEGY Divisionalisation HNW customer acquisition model Opening of leasing company Asset management products launch (mutual funds, bancassurance, structured depos) and market leadership in the area Value proposition distinctiveness OPERATIONAL STRATEGY New branch model New credit underwriting system for Corporate customers, pilot project for all UCI NE banks New IT system New risk management system Alternative channels development Intensified conversion from back-office to front-office Active training and focused career development for talents Outsourcing of non-core activities PEOPLE

14 Strong financial standing: high capitalisation, critical mass, low risk on assets, high efficiency, UCI support Distinctive market leadership: 1 st bank in asset, deposit, payment, corporate loan, FC operations, upper-end markets terms Deep changes and model: active relationship management on a broad basis, innovative servicing approach and products AMBITIOUS TARGETS AND DEVELOPMENT PLAN: double digit annual income growth, deeper segmentation, enrichment of value propositions, alternative channels, new IT, fast systems’ upgrade, investment in people CUSTOMER CENTRIC BUSINESS MODEL: knowledge, flexibility, proficiency, tailored approach SHAREHOLDER COMMITMENT: UCI commitment to Bulgarian economy development and strong monitoring of the bank’s operations and development STRONG POSITIONING SUMMING UP: BULBANK – BIG,SAFE, SOUND AND INNOVATIVE

15 Annexes

16 Interest margin (incl. div.) Net non interest income Total revenues Operating costs (incl. dep.) Net operating income Net income - of which: Staff costs Dec Net loan loss provisions (Euro mln, IAS) Taxes (2) Dec Ch. % 2001/ Sep Sept Ch. % Sept. 02/ Sept (1) Extraordinary income/loss BULBANK 9M02 INCOME STATEMENT - of which: Fee income (1) Including EUR 78.4mn gains from sale of equity investments mainly in UBB, HVB Bulgaria and Corporate Commercial Bank. (2) Statutory tax rate for legal entities: 23.5% (28% until the end of 2000) (3) Less gains from sale of equity investments Net income (adj.) (3) Pre-tax profit/loss

17 Cash and deposits with Central Banks (Euro mln, IAS) Sept Sept Ch. % Sept. 02/ Sept. 01 ASSETS Bank placements Dec. 01 Ch. % Sept. 02/ Dec. 01 Securities Fixed assets Other assets LIABILITIES TOTAL ASSETS AND LIABILITIES 1,4121,3971, Deposits: 1,0331,0481, Due to Customers Other liabilities ,3971, Due to Banks Reserve fund for possible loan losses Customer Deposits- adj. (1) 1,0481, BULBANK 9M02 BALANCE SHEET TOTAL ASSETS AND LIABILITIES- adj. (1) (1) With Sept.02 figures recalculated at BGN/USD exchange rate ruling on 31 Dec.01. Shareholders’ equity Customer loans ,412 1,