Announcement 30/2009

Bank BPH SA hereby announces that on July 29, 2009, its Supervisory and Management Boards adopted a middle-term 2009-2012 growth strategy for the Combined Bank, to be created after the integration of Bank BPH SA and GE Money Bank. As announced on November 25, 2008 due to macroeconomic changes the Banks have verified key components of their business plans.

Bank BPH and GE Money Bank have made progress with merging the two banks and becoming a top 5 universal bank in Poland.

The Combined Bank’s aspiration is to create a top choice institution for individual customers, SMEs and Mid-caps. When the merger is completed, the Combined Bank will have: 319 branches; 150 franchise outlets; 11 Corporate Centers; 18 SME Centers and 250 mobile agents dedicated to this segment, as well as 2,700 agents and 3,300 sales finance points. Based on Strategy assumptions, by the year 2012 the network will include: 337 branches; 350 franchise outlets; 11 Corporate Centers; 25 SME Centers and 350 SME mobile agents, as well as 2,300 agents and 2,800 sales finance points. The strategy is based on providing access to banking through leveraging multi-channel distribution, with strong focus on Internet and telephone banking, which is expected to boost the number of e-accounts from 400 ths in 2009 to 1.5 million in 2012.

By 2012, the Combined Bank will aim to enhance its market position in the SME segment, where it plans to achieve a 10% share of loans. In terms of private individuals, the Combined Bank’s aspiration is to reach an 11% share of the credit card market segment, 8% in personal loans and 4% in current accounts as well as maintain a 30% share in sales finance market segment, and 7% in mortgages. The Bank will also target strong growth in Corporate Banking by increasing its share in loans and through the development of modern transactional banking products. The Combined Bank will also aim to win a 7% segment share in the Treasury negotiated non-banking plain vanilla F/X products and 4% in deposits from private individuals, SMEs and Corporate clients.

The Strategy is to deliver the following financial objectives in 2012:

Return on Equity of 17% or above;
Return on Assets of 2% or above;
Cost/Income Ratio below 50%;
Capital adequacy ratio 10% or above;
Average annual assets growth rate in 2009-2012 - ca. 6% from PLN 39B in 2009 to PLN 47B in 2012;
Average annual total loan growth rate in 2009-2012 - ca. 8%;
Average annual total deposit growth rate in 2009-2012 - ca. 15% from PLN 13B in 2009 to PLN 19B in 2012;
Average annual retail and SME loans growth rate in 2009-2012 - ca. 7% from PLN 31B in 2009 to PLN 39B in 2012;
Average annual corporate loans growth rate in 2009-2012 - ca. 19% from PLN 2B in 2009 to PLN 3B in 2012;
Average investments in 2009-2012: ca. PLN 200MM p.a.;
One-off integration costs: ca. PLN 85MM;
Annual synergy impact before tax by 2012 – 240MM.

Disclaimer
The forecasts and forward-looking statements contained in this release are necessarily based uponnumber of assumptions and estimates that, while considered reasonable by us, are inherently subject to business, operational, economic and competitive uncertainties and contingencies, many of which are beyond our control. Actual results may differ materially from those projected.