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2008 RESULTS

12 Feb 2009. PRESS CONFERENCE. 2008 RESULTS. 2008 RESULTS. 2008: Another satisfactory year in a troubled environment. AGENDA. Activity : BRD has continued its development in 2008 and shown a strong resilience

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2008 RESULTS

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  1. 12 Feb 2009 PRESS CONFERENCE 2008 RESULTS

  2. 2008 RESULTS 2008: Another satisfactory year in a troubled environment

  3. AGENDA • Activity: BRD has continued its development in 2008 and shown a strong resilience • General expenses : in spite of important investments, they have been well controlled and even frozen in the middle of the year • Risks: the net cost of risk is one of the lowest of the banking system • Performances: • Stay at high level in spite of the difficult environment • BRD Stock price suffers from the financial crisis due to the very low volume of the stock market

  4. Activity CLIENTS An expanding clientele Corporate Clients (*) (x 1000) Individual Clients (*) (x 1000) (*) Clients having performed transactions during the past three months

  5. Activity NETWORK Network: maintaining the expansion… Number of branches (end of period) +124 +206 BRD Express +274 • Mainlynext door banking: small customer oriented units (BRD Express). +114 • 751 branches opened since June 2003. • In 2008 expansion continued but at lower pace and 2009 will mark a pause in the development.

  6. 44 + 9 32+7 69+1 82+8 34+3 32+2 59+18 50+2 38+2 32+12 44+4 32+3 57+14 29+15 109+20 VALAHIA 28+ 2 35+2 Activity NETWORK 806agenciesat the end of2007 + 124 agencies opened in 2008 … and covering all areas with growth potential

  7. Activity DEPOSITS / LOANS Continuation of growth in spite of the crisis Customers’ deposits (BRD consolidated) (end of year, MRON) Loans to customers (BRD consolidated) (end of year, MRON) + 6% +27% + 37% Individuals 46% Individuals 48% + 44% Corporates 54% Corporates 52%

  8. Activity TOTAL COMMITMENTS A continuous and powerful contribution to the economic activity Structure of total commitments as at 31 Dec 2008 Small enterprises 7.1 Individuals 17.4 Medium enterprises 10.8 Large corporate 8.2 Total commitments = 43.5 bnRON

  9. Activity FOCUS ON SUBSIDIARIES Consumer finance (BRD Finance): strong growth in consumer credit Balances of loans to customers (MRON) • Maintaining good results in a highly competitive market • Strong growth in balances +129 MRON (+21% vs. 31 Dec 2007).

  10. Activity FOCUS ON SUBSIDIARIES Leasing (BRD Sogelease) – vendor and equipment finance Customer balances (MRON) +32% • A strong growth since inception x 3.4 • A key player in corporate asset financing (3rd rank among leasing bank affiliates) • A well balanced portfolio

  11. Activity FOCUS ON SUBSIDIARIES Operational vehicle leasing and fleet management (ALD) • Still an emerging business in Romania, servicing both SME’s and large corporates Vehicles under management (number) • A good start (July 2005), leveraging on ALD International – member of SG Group – expertise (2nd European player) Corporate clients (number) • Fleet under management +2,212 vehicles in one year (+85%)

  12. Activity NET BANKING INCOME Solid increase in revenues Net banking income (BRD consolidated) MRON) • Net banking income +27% vs. 2007 • Interest margin +21% vs. 2007 • Commissions +31% vs. 2007 • FX and others +38% vs. 2007 • Commisions contributed with 41% to 2008 NBI • 2008 NBI from Corporates customers 46% in total NBI, from individuals 38% FX and others Commissions Interest margin 2008 - Exceptional result from Asiban not included

  13. AGENDA • Activity: BRD has continued its development in 2008 and shown a strong resilience • General expenses : in spite of important investments, they have been well controlled and even frozen in the middle of the year • Risks: the net cost of risk is one of the lowest of the banking system • Performances: • Stay at high level in spite of the difficult environment • BRD Stock price suffers from the financial crisis due to the very low volume of the stock market

  14. General expenses EXPENSES Pursuing a strong investment effort Investments (MEUR) IT 19 Real estate 20 Other 25

  15. General expenses EMPLOYEES Pursuing the recruitment effort but at slower pace and a strict management of administrative expenses Employees (end of year - consolidated) +954

  16. GROSS OPERATING INCOME 2008: Maintaining a high increase in revenues Gross Operating Income (BRD consolidated) (MRON) • Low cost/income ratio despite ongoing commercial investment • Accelerated growth of Gross Operating Income Operating ratio 2008 - Exceptional result from Asiban not included

  17. AGENDA • Activity: BRD has continued its development in 2008 and shown a strong resilience • General expenses : in spite of important investments, they have been well controlled and even frozen in the middle of the year • Risks: the net cost of risk is one of the lowest of the banking system • Performances: • Stay at high level in spite of the difficult environment • BRD Stock price suffers from the financial crisis due to the very low volume of the stock market

  18. Risks COST OF RISK Limited increase of the cost of credit risk Net Cost of Commercial Risk/Commitments (BRD consolidated) • From the Net Cost of Risk of 2008 16 b.p. represents “regulatory impact” • The BRD’s credit risk rate is lower than the banking system: • On balance sheet: 3.86% (6.52% total banking system) • On and off balance sheet: 4.18% (7.67% total banking system) Total Loans (bnRON)

  19. AGENDA • Activity: BRD has continued its development in 2008 and shown a strong resilience • General expenses : in spite of important investments, they have been well controlled and even frozen in the middle of the year • Risks: the net cost of risk is one of the lowest of the banking system • Performances: • Stay at high level in spite of the difficult environment • BRD Stock price suffers from the financial crisis due to the very low volume of the stock market

  20. Performances PROFIT AND LOSS ACCOUNT 2008: Another satisfactory year in a troubled environment (*) BRD + BRD Sogelease + BRD Finance + BRD Securities

  21. Performances RETURN ON EQUITY Financial strength and strong recurrent profitability Total B/S as of 31 December 2008 : 51.4 bnRON • Equity – 95% increase over the last two years, due to the excellent increase in net profit (+66% vs. 31 Dec 2006). BRD + BRD Sogelease + BRD Finance + BRD Securities

  22. Performances - Stock price STOCKMARKET PRICE BRD share price above BET index Evolution on the Stock Exchange average price (area 2008 – the 100 basis in 2001) Market capitalisation at 09.02.2009 = 928 MEUR BRD RON BET RON *01.01 – 06.02.2009

  23. 2008 RESULTS 2008: Another satisfactory year in a troubled environment 2008 Evolution 08/07 MRON nominal Net banking income 3,199 27% Operating profit 1,841 31% Net consolidated profit (*) 1,138 22% Net consolidated profit with Asiban 1,364 46% Net profit (BRD stand alone) 1,127 23% Net profit with Asiban (BRD stand alone) 1,353 48% (*) BRD + BRD Sogelease + BRD Finance+ BRD Securities

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