2 Why foreign banks are investing in Poland? Large market & geographySupport global/regional clientPotential growthPolitical & regulatory frameworkEuropean convergence
3 Banks assets are mainly managed by foreign banks Market share for loans and depositsSTRATEGIESuniversalgroupopportunisticglobalregionalspecializedNon retail group
4 Global Bank’s predominant business model Retail BankingDomestic Retail BankingRetail Financial ServicesInternational Retail BankingCorporate and Investment BankingAsset Management and ServicesAdvisory & Capital MarketsSpecialised FinancingCorporate BankingSecurities ServicesInsurancePrivate BankingAsset Management
6 Investing in PolandWhat resource?What constraints?Secure an internal decision!AwarenessContribution to group growth & resultsSponsoring of business linesGroup’s strategy
7 Investing in PolandIndustrialize your processes & MISMass processingOutsourcingEuropean platforms (Back Office, Systems, Booking)Telecom, Intranet, InternetNetwork
8 Investing in PolandCOMPLY!Local, international & group regulationsCode of ethicsKnow your clients and transactionsBe prepared to be audited!
9 Master your risks to be competitive! Investing in PolandMaster your risks to be competitive!Country riskSovereign riskOperational riskGet the best limits!Utilize it!Control it!Reputation riskCounterparty riskMarket risk
10 The most important: give great care to your human resources! Investing in PolandThe most important: give great care to your human resources!Jobs are not only to be offered, but also to be marketed:Values of the groupStrategy of the bankMission & objectivesTraining & coachingCareer developmentCurrent gap between offer & demand:Senior client coverageMarket, credit & operational risk skillsMIS project management & controlling….Initiative, autonomy, professionalism….
12 Get profitable & recurrent business: A thrilling challenge!Daily, budget and business plan positive stress!Constantly evolving landscapeRely upon your team: trust & controlClients, clients, clients…..39 mio inhabitants and EU accession: substantial sources of revenue for banks?
13 Recurrent performance Market Capitalization Main growth enginesfor PolandKeys to successRetail bankingAsset managementStructured productsConsumer bankingBusiness solutions:hedging, cash mgt, structured financingA long term visionA global & skilled team with valuesReassess, review, question your businessBuild up a healthy businessFranchiseMarket shareSolvencyRisk/equityEfficiencyCost to incomeRatingRecurrent performanceMarket CapitalizationMake your futurePerformanceROE
14 Markets: Solid Prospects for Medium-term Growth Growth driversMarketsGrowth trendsFast-growing new markets:- credit derivatives- alternative mgt- fund admin,...Stronger influence of capital markets,customer sophistication>15%Capital market activities, Savings and investmentPopulation ageingexpanding markets+8 to 12%GDP and credit growthRetail banking (Europe)+4 to 5%
15 Future is uncertain… Mergers, synergies, industrialization Bankinsurance doesn’t seem to be a modelNew playersWeakening systems:Japan, GermanyNew regulations might affect current competitionCrisis: countries, global groupreputation
16 Leading Banks in Euro Zone Market capitalization (Bio Eur)
17 Leading Banks in Euro Zone Net Income in 2001 (Bio Eur)