BANK HANDLOWY W WARSZAWIE S.A. 3Q 2009 consolidated financial results

-1-

Significant increase of net income in 2009 /mln zł/

285

300

250

92

300% 200

150

172% 100

193

54% 50

46

71

0 1Q 09

2Q 09

3Q 09

* One-off event according to current report as of 15 October 2009: refers to correction of tax settlements.

-2-

Impact of oneoff event*

Macroeconomic situation in 3Q 2009 Investments and private consumption as factors of slowdown

Positive trade balance

7.0

25.0

6.0

20.0

5.0

50 40 30 20 10

15.0

4.0

10.0

3.0 2.0 1.0 0.0

5.0

0

0.0

-10 -20

-5.0 2q05

4q05

2q06

4q06

2q07

Private Consumption YoY

4q07

2q08

4q08

-30 -40

2q09

Jan-08

Investment growth YoY

Apr-08

Jul-08

Oct-08

Exsports r/r

Improvement in global market sentiment and strong fundamentals support the strengthening of the zloty

Jan-09

Apr-09

Jul-09

Imports r/r

WIBOR3M still much higher than the Polish Central Bank reference rate

120

4.6 4.4

115

4.2 4.0

110

3.8 105

3.6 3.4

100

3.2 95

3.0 O/N

90 Jan-09

3/31/2009 Mar-09

May-09 EURPLN

EURRON

Jul-09

Sep-09

EURCZK

-3Źródło: Citi Handlowy, GUS, NBP

1W

2W 6/30/2009

1M

3M 9/30/2009

Reference rate

Increase of operating margin in the last three quarters /PLN MM/ 700 600

90%

350

300

56%

60% 50%

200

40%

626

593

625

30%

475 336

20%

374

market +13%

250

53%

400

352

331

7%

market +18%

70%

63%

300

= +7

80%

71%

500

200

= +10

/PLN mln/

sektor -3%

25%

59%

150

274

294

219

100

138

10% 50

100 0% 0

0

-10% 4Q 08

Income

1Q 09

2Q 09

Cost

4Q 08

3Q 09

C/I

1Q 09

2Q 09

3Q 09

Operating margin

Increase of operating margin excluding one-off event (positive impact of VAT return) due to stable income and decreasing costs

Operating margin = income - cost -4-

Net income 3Q2009 vs 3Q2008 /PLN MM/

350

300

8 0

250 41

115

69 33

36

200

12 150

100

285 216

50

0 NET INCOME 3Q2008

Interests

12%

Fees

Treasury

0%

Expenses

Net impairment

69 MM

tax

Vat correction

10%

Other

NET INCOME 3Q2009

33 MM

(3Q09/3Q08)

(3Q09/3Q08)

(3Q09/3Q08)

(3Q09/3Q08)

(3Q09/3Q08)

Net interest income

Fee & commision income

Treasury

Expenses and depreciation

Net impairment losses

market -4%

market +9%

-5-

market -4%

Net income 3Q2009 vs 2Q2009 /PLN MM/ 350

300

19

250

115 45

200 125 150

285

100 7

20

Interests

Fees

5

20

Treasury

Expenses

50

71 0 NET INCOME 2Q2009

2%

15%

Net impairment

5 MM

tax

Vat correction

6%

Other

NET INCOME 3Q2009

125 MM

(3Q09/2Q09)

(3Q09/2Q09)

(3Q09/2Q09)

(3Q09/2Q09)

(3Q09/2Q09)

Net interest income

Fee & commision income

Treasury

Expenses and depreciation

Net impairment losses

market +13%

market -5%

market +3% -6-

FX Options’ impact on Bank’s income in 3Q2009 FX Options impact

/PLN MM/ 1Q 08

2Q 08

3Q 08

(2)

(3)

(2)

4Q 08

1Q 09

2Q 09

3Q 09

0

(10) (59)

-50

-100

(162)

-150

-200

(259)

-250

3Q 2009

-300

/PLN MM/

FX Options (PLN 10 MM)

400

7*

350

3

300

250

200

365

355

150

100

50

0 Profit before tax 3Q2009 excl. FX Options

Treasury

Net impairment losses

-7*Including FX Options hedging

Profit before tax 3Q2009

High quality of capital Strong capital base

Capital structure of the biggest banks in Poland**

(CAR)

16%

15,2% 13,2%*

14%

Citi Handlowy

13,5%

Bank 1

12,1% Bank 2 12%

Bank 3 10%

Bank 4

9,8% 8%

9,2%

9,2%

Bank 5 Bank 6

6% 4Q '08

1Q '09

2Q '09

3Q '09

Bank 7

Citi Handlow y

0%

Average for 7 biggest banks excl. Citi Handlow y (Tier 1 only, excl. subordinated debt) * incl. 2008 net income for data comparability; reported value amounted to 11.2%

2%

4%

6%

8% 10% 12% 14% 16%

CAR (Tier 1 only, excl. subordinated debt) ** for Citi Handlowy data as of 3Q 2009, for other banks data as of 2Q 2009

Source: Citi Handlowy, banks financial statements, own calculations

-8-

CAR

A high net interest margin Net interest income and net interest margin

73%

48%

(3Q09/3Q08)

(3Q09/3Q08)

Debt securities portfolio income

Deposits cost – non-financial sector

/PLN MM/

Net interest result Net interest margin Net interest margin (market)

450 400

3,8% 3,6%

350

3,4%

300

3,2%

250

3,0%

200

2,8%

150

2,6% 3Q07

4Q07

1Q08

2Q08

3Q08

4Q08

Net interest margin = sum of net interest results from 4 quarters to average assets from 4 quarters

-9-

1Q09

2Q09

3Q09

Successive QoQ improvement of fee & commission result Net fee & commission income

↑82%

↑21%

- brokerage

(3Q09/3Q08)

- credit cards

↑11%

- transaction services

(3Q09/3Q08)

(3Q09/2Q09)

/PLN MM/ 250

Increase of net fee & commission income in 3Q 2009

DMBH’s share in volume of trade in shares on WSE 3Q09 (%) Dom Maklerski Banku Handlowego

200 150

4%

14

15%

DM BZ WBK

58

100

11

50

7

10 ING Securities

0 3Q07

4Q07

1Q08

2Q08

3Q08

4Q08

1Q09

2Q09

3Q09

Others (38 brokerage houses)

- 10 -

DI BRE

Stable customer activity result Treasury 3Q 2008

I/D (PLN MM)

3Q 2009

(69.0)

95.3

164.3

Proprietary management

Customer activity

Proprietary management result

Customer activity result FXO 9 mln*

FXO (7 mln)* FXO (259 mln) FXO (105 mln) 3Q 07

4Q 07

1Q 08

2Q 08

3Q 08

4Q 08

1Q 09

2Q 09

3Q09

3Q 07

4Q 07

*Including FX Options hedging Scale on charts is incomparable

- 11 -

1Q 08

2Q 08

3Q 08

4Q 08

1Q 09

2Q 09

3Q09

Risk stabilisation in 3Q2009 Net impairment losses* 3Q 2008

3Q 2009

I/D (mln zł)

(22.6)

(52.8)

(30.2)

/PLN MM/

Net impairment losses Corporate Banking Retail Banking Total

Net impairment losses*

40 20 0 (20) (40) (60) (80) (100) (120)

3Q08 (4,0) (18,6) (22,6)

3Q09 (1,5) (51,2) (52,8)

Retail banking: Higher risk of credit cards and consumer loans portfolios

3Q07

4Q07

1Q08

2Q08

3Q08

4Q08

1Q09

2Q09

Coverage ratio as of 3Q 2009

3Q09

Corporate banking: Stabilisation of corporate portfolios – effect of restructuring activities and risk mitigation

70% 10 biggest banks 58%**

*excl. FX Options ** data as of 2Q09

- 12 -

Improvement of loan portfolio quality Nonbanking loans and advances - at risk of impairment to total loans 18%

Nonbanking loans and advances - at risk of impairment to total loans 20% 18% 16% 14% 12% 10% 8% 6% 4% 2% 0%

15.6%

16% 14%

11.5%

12% 10% 8% 6% 4% 2% 0% 2Q 2009

3Q 2009*

Individual clients

18.4%

Corporate clients 14.3%

7.7%

8.2%

2Q 2009

3Q 2009

Past due corporate loans structure (3Q 2009)

49%

Citi Handlowy

banking sector

8%

43%

72%

9%


Sale of non-performing loans portfolio
Intensifying colection activities

19%


Prudent credit policy 0%

20% below 1 year

40%

60% 1-3 years

80%

100%

above 3 years

* excl. derivatives; taking derivatives into account, the ratio amounts to 12.9% - 13 -

Expenses under control

market -4% /PLN MM/

400

367

Cost / Income

(10%) Corporate Banking Retail Banking Total

331

350

3Q08 48% 65% 56%

3Q09 44% 65% 53%

300 250

196

(10%) Retail banking: Optimisation of branch network, technology and infrastructure and lower marketing expenses

177

200 150 100

(10%) 171

Corporate banking: Lower external services and transaction costs

154

50 0 3Q2008 Corporate Banking

3Q2009 Retail Banking

- 14 -

Loans Non-financial sector loans /PLN MMM/

Corporate loans

9 8 7 6 5 4 3 2 1 0

Gross loans non-financial sector Currency structure

Retail loans

/PLN MMM/

6 5 4

10%

9%

3

90%

16% 12%

2 84% 88%

1 0

30.06.09

30.09.09

30.06.09

PLN

30.09.09

FX Market

32%

Changes

3Q2009/2Q2009

Market 3Q2009/2Q2009

(4%)

(1%)

68%

Changes* *excl. mortgage

Corporate loans: including public sector and local government institutions - 15 -

3Q2009/2Q2009

Market 3Q2009/2Q2009

1%

2%

Deposits Non-financial sector deposits Corporate deposits /mld zł/ 14

Deposits non-banking sector Currency structure

Retail deposits /mld zł/ 6

12 10

21%

22%

17% 79% 78%

8

4

83%

6

2

4 2 0

0

30.06.09

30.09.09

30.06.09

PLN Current

30.09.09

FX

Term

Current

Changes

3Q2009/2Q2009

Market 3Q2009/2Q2009

Current

3%

(2%)

Term

(19%)

5%

Total

(13%)

2%

Market 9% 91%

Stable level of average balances Corporate deposits including public sector and local government institutions - 16 -

Term

Changes

3Q2009/2Q2009

Market 3Q2009/2Q2009

Current

21%

3%

Term

(3%)

(2%)

Total

12%

0%

Leading partner for public sector 2009

2009

TRANSACTION OF THE YEAR PZU SA

DMBH

3 000 000 000 PLN

1 700 000 000 PLN

One of the biggest reverse repo transaction in the last 20 years

89% of MT’s minorities value concluded on WSE

2009

Bank Gospodarstwa Krajowego 600 000 000 PLN Roads bonds issue

Sale on order of Ministry of Treasury „minority interest” Pekao SA for PLN 1.1 billion.

2009

Miasto stołeczne Warszawa 4 000 000 000 PLN Bonds issue programme

Municipal bonds issue

Organiser Bank Handlowy w Warszawie SA

Organiser, Custodian, Payment Agent, Dealer

- 17 -

What will happen in the end of 2009? Summary

• Permanent trend of

improvement in the market situation

• Citi Handlowy – well positioned Bank for taking advantage in the market situation’s improvement • High level of the first class capital • High liquidity • Quick reaction on quality of the loan portfolio’s deterioration

- 18 -