BANK PEKAO S.A. GROUP Financial results after 2Q 2006 Istanbul, 5-6 October, 2006 Growth creating value CA IBs Annual Emerging Europe Conference.

BANK PEKAO S.A. GROUP

Financial results after 2Q 2006

Istanbul, 5-6 October, 2006

Growth creating value

CA IB’s Annual Emerging Europe Conference

DISCLAIMER

Forward looking statement

This presentation contains certain forward-looking statements with respect to the financial

condition, results of operations, and businesses of Bank Pekao S.A. These statements and

forecasts involve risk and uncertainty because they relate to events and depend upon

circumstances that will occur in the future. There are a number of factors which could cause

actual results or developments to differ materially from those expressed or implied by these

forward looking statements and forecasts. The statements have been made with reference

to forecast price changes, economic conditions and the current regulatory environment.

Nothing in this announcement should be construed as a profit forecast.

AGENDA

Macro scenario

3

Second quarter consolidated results

Integration process

7,97,7

7,8

7,1

6,9

6,8

6,6

7,37,37,2

6,06,2

6,7

5,96,46,2

5,85,6

5

6

7

8

9

JAN'0

5FEB

MAR

APRM

AYJU

NJU

LAUG

SEPO

CTNO

VDEC

JAN'0

6FEB

MAR

APRM

AYJU

N

EXPORT (EUR bn)

4

Source: Central Statistical Office, National Bank of Poland

GDP (% Y/Y)

4,0

2,22,9

5,55,2

3,9

4,3

5,9

4,24,7

6,8

4,8

4,0

0,0

1,0

2,0

3,0

4,0

5,0

6,0

7,0

8,0

2Q 03 3Q 03 4Q 03 1Q 04 2Q 04 3Q 04 4Q 04 1Q 05 2Q 05 3Q 05 4Q 05 1Q 06 2Q 06

POLISH ECONOMY TRENDS

-0,6

1,4

4

6,5

10,17,4

14,4

8,6

4,9

4,8

0,71,5

5,3

-3

-1

1

3

5

7

9

11

13

15

2Q 03 3Q 03 4Q 03 1Q 04 2Q 04 3Q 04 4Q 04 1Q 05 2Q 05 3Q 05 4Q 05 1Q 06 2Q 06

INVESTMENTS (% Y/Y)

2,6

4,9

2,8

2,31,41,4

5,2

2,7

5,1

2,22,7

5,1

4,4

0

1

2

3

4

5

6

2Q 03 3Q 03 4Q 03 1Q 04 2Q 04 3Q 04 4Q 04 1Q 05 2Q 05 3Q 05 4Q 05 1Q 06 2Q 06

CONSUMPTION (% Y/Y)

Source: National Bank of Poland

5

BANKING SECTOR TRENDS

9,4 9,1

11,6

8,4

-0,2

11,4

9,2

10,4

7,98,2

6,04,8

-1,0

1,0

3,0

5,0

7,0

9,0

11,0

13,0

15,0

3Q 03 4Q 03 1Q 04 2Q 04 3Q 04 4Q 04 1Q 05 2Q 05 3Q 05 4Q 05 1Q 06 2Q 06

TOTAL SECTOR LENDING (% Y/Y) TOTAL SECTOR DEPOSITS (% Y/Y)

DYNAMIC OF HOUSEHOLDS AND CORPORATE LENDING IN THE POLISH BANKING SECTOR (% Y/Y)

18,922,8

25,4

28,8

15,5

14,1

13,9

13,8

15,5

12,212,6

10,3

5,13,92,81,5

0,8

-3,4

-3,9

-8,2

-7,1

-4,8-2,3

1,6

-15,0

-10,0

-5,0

0,0

5,0

10,0

15,0

20,0

25,0

30,0

35,0

3Q 03 4Q 03 1Q 04 2Q 04 3Q 04 4Q 04 1Q 05 2Q 05 3Q 05 4Q 05 1Q 06 2Q 06

Households Corporate

DYNAMIC OF HOUSEHOLDS AND CORPORATE DEPOSITS IN THE POLISH BANKING SECTOR (% Y/Y)

-0,5

5,63,13,63,3 4,44,2

0,60,60,0-0,5

-6,2

17,7

21,7

16,8

21,5

14,1

24,4

24,8

25,9

32,828,5

2421,1

-12,0

-7,0

-2,0

3,0

8,0

13,0

18,0

23,0

28,0

33,0

38,0

3Q 03 4Q 03 1Q 04 2Q 04 3Q 04 4Q 04 1Q 05 2Q 05 3Q 05 4Q 05 1Q 06 2Q 06

Households Corporate

9,6

16,0

13,6

11,8

7,4

5,44,6

3,3

1,83,2

3,5

6,1

1,0

3,0

5,0

7,0

9,0

11,0

13,0

15,0

17,0

2Q 03 4Q 03 1Q 04 2Q 04 3Q 04 4Q 04 1Q 05 2Q 05 3Q 05 4Q 05 1Q 06 2Q 06

AGENDA

Macro scenario

6

Second quarter consolidated results

Integration process

NET INCOME (PLN mil.)

OPERATING INCOME (PLN mil.)

7

ROE (%)

20,518,7

1H 05 1H 06

+1.8 p.p.

395418

447

2Q05 1Q06 2Q06

525 552595

2Q05 1Q06 2Q06

+13.2%+6.8%

+13.4%+7.9%

NET INCOME UP BY 19.3% Y/Y, DRIVEN BY SOUND OPERATING INCOME GROWTH (+15.8% Y/Y), CONFIRMING CAPABILITY TO DELIVER SUSTAINABLE RESULTS. ROE IMPROVED TO 20.5%

725

865

1H 05 1H 06

991

1147

1H 05 1H 06

+19.3%

+15.8%

TOTAL REVENUES (PLN mil.)

OPERATING EXPENSES (PLN mil.)

8

COST / INCOME RATIO (%)1103 1134 1179

2Q05 1Q06 2Q06

50,453,8

1H 05 1H 06

-3.4 p.p.

+6.9%+4.0%

+1.0%+0.2%

REVENUES UP BY 7.9% Y/Y, OPERATING EXPENSES UNDER CONTROL. COST/INCOME RATIO IMPROVED TO 50.4%

21442313

1H 05 1H 06

+7.9%

1154 1166

1H 05 1H 06

+1.1%

REVENUES (PLN mil.)

9

589 573 577

381 460 469

133133101

2Q05 1Q06 2Q06

% ch2Q 06/1Q 06

% ch2Q 06/2Q 05

+0.2%

+23.0%

-2.0%

+32.0%

+1.9%

+0.7%

1103 1134 1179

+6.9%+4.0%

HEALTHY STRUCTURE OF REVENUES WITH GROWTH DRIVEN BY NET FEE AND COMMISSION (+24.2%)

1127 1150

748929

270233

1H 05 1H 06

Net interest income Net fee & commission income Other

2 144 2 313

+7.9%

-13.6%

+24.2%

+2.1%

4,44%4,20% 4,10%

2Q 05 1Q 06 2Q 06

NET INTEREST MARGIN *

NET INTEREST INCOME (PLN mil.)

10

589 573 577

2Q05 1Q06 2Q06

-2.0%

+0.7%

NET INTEREST INCOME INCREASE BY 2.1 % Y/Y DRIVEN BY FURTHER IMPROVEMENT OF ASSETS MIX. NIM ALMOST STABLE AT 4.1%

*excluding sell buy back and buy sell back

4,35% 4,15%

1H 05 1H 06

1 127 1 150

1H 05 1H 06

+2.1%

11

27 621 25 894 25 941

16 502

20 22319 23816 415

21 66620 120

JUN'05 DEC'05 JUN'06

Retail (**) Mutual Funds (*) Corporate

60 538 65 251 67 830

+31.3%

-6.1%

+23.2%

+12.0%

+4.0%

CUSTOMERS SAVINGS (PLN mil.)

* total PPIM mutual funds, ** Bank only

+7.7%

+5.1%

+0.2%

- savings of retail customers

+4.8% +2.3%45 132 46 16444 036

TOTAL SAVINGS UP BY 12% Y/Y, WITH CONTRIBUTION OF BOTH RETAIL AND

CORPORATE

% chJUN06/JUN05

% chJUN06/DEC05

20 22319 238

16 415

2Q 05 4Q 05 2Q 06

+5.1%

+23.2%

26,2%26,1%26,6%28,0%31,4%

36,4%

2Q 05 4Q 05 1Q 06 Apr 06 May 06 June 06

MUTUAL FUNDS – VOLUMES (PLN mil.)

MARKET SHARE

2Q 2006 MUTUAL FUNDS ASSETS STRUCTURE*

Bonds MF Equity MFBalanced MF

* all Pioneer funds - domestic and international

12

STRUCTURE OF MF SOLD BY PEKAO (%)

78,3%

26,1%10,5%

17,1%

60,3%

63,0%

4,6% 13,5%26,5%

2Q05 4Q 05 2Q 06

RESILIENT MUTUAL FUNDS, +5.1% YTD DESPITE DIFFICULT MARKET IN Q2.MARKET SHARE STARTED TO STABILISE. FURTHER IMPROVEMENT IN ASSETS MIX

33.7%

51.3%

15.0%

8 177 8 8577 313

24 332 25 058 25 371

JUN'05 DEC'05 JUN'06

Retail Corporate

31 645 33 235 34 229

* Nominal value

CUSTOMERS LOANS* (PLN mil.)

13

+8.2%

+3.0%

+21.1%

+4.3% +1.2%

+8.3%

% chJUN06/JUN05

% chJUN06/DEC05

TOTAL LOANS UP BY 8.2% Y/Y WITH „POŻYCZKA EKSPRESOWA” AND PLN

MORTGAGE LOANS AS MAIN DRIVERS IN RETAIL LENDING (+21.1% Y/Y)

14

SUCCESSFUL SALE OF „POŻYCZKA EKSPRESOWA” ALLOWED TO BUILD A STOCK OF PLN 1.8 BLN

STOCK VOLUME (in PLN mil.)

1790

581

1H 05 1H 06

VOLUME SOLD (in PLN mil.)

689

911

1H 05 1H 06

+32.2% +208.1%

15

VOLUME OF MORTGAGES SOLD (PLN mil)

615

456

2Q 05 2Q 06

VOLUME OF PLN MORTGAGES STOCK (PLN mil)

3242

3777

2672

JUN 05 DEC 05 JUN 06

VOLUME OF FX MORTGAGES STOCK (PLN mil)

716638

847

JUN 05 DEC 05 JUN 06

+41.4%

+16.5% -24.7%

-10.9%

CONTINUOUSLY IMPROVING SALES (+35% 2Q/2Q) ALLOWED FOR 41% INCREASE IN STOCK OF PLN MORTGAGE LOANS

+34.9%

1020

793

1H 05 1H 06

+28.6%

FEE AND COMMISSION INCOME (PLN mil.)

16

196 205 214

58 57 6340 46

5487

151 139

2Q05 1Q06 2Q06

+16.0%

-8.3%

+9.4%

+4.0%

+35.6%

+59.1%

+7.7%

+8.9%

381 460 469

+23.0%

+1.9%

STRONG GROWTH OF FEE AND COMMISSION INCOME (+24.2% Y/Y), WITH MUTUAL FUNDS (+68.1%) AND LENDING (+42.7%) AS MAIN DRIVERS

% ch2Q 06/1Q 06

% ch2Q 06/2Q 05

392 419

113 12070

100172

290

1H 05 1H 06

Accounts & transactions Cards Lending Mutual Funds

748 929

+42,7%

+68.1%

+6.5%

+6.8%

+24.2%

17

COSTS (PLN mil.)

300 302 304

80

201201198

7880

2Q05 1Q06 2Q06

-2.0%

+0.8%

+0.1%

578 582 584

-2.0%

+1.4%

+1.5%

2Q 05 1Q 06

Headcount 16 161 15 917 15 891

COSTS UNDER CONTROL, CONFIRMING GROUP EXCELLENT COST MANAGEMENT

2Q 06

595 606

397

161 158

401

1H 05 1H 06

Personnel costs Non-personnel+BGF Depreciation

-1.8%

+1.8%

+1.1%

1154 1166

+1.1%+1.0%

+0.2%

% ch2Q 06/1Q 06

% ch2Q 06/2Q 05

28 080 28 450 29 081

5 0645 191 5 169

DEC 05 MAR'06 JUN'06

Performing Impaired

NPL RATIO*

83,9% 85,7% 87,8%

DEC 05 MAR'06 JUN'06

PROVISION COVERAGE RATIO 0,93%0,75% 0,65%

2Q 05 1Q 06 2Q 06

COST OF RISK

* In accordance with IFRS

18

FURTHER IMPROVEMENT OF COST OF RISK, DOWN TO 0.65%, THANKS TO

BETTER MACROECONOMIC CONDITIONS AND EFFICIENT RISK MANAGEMENT

15.6% 15.4% 14.8% % chJUN06/MAR06

% chJUN06/DEC05

-2.4%

+3.6%

-2.0%

+2.2%

SUMMARY

Best ever profit

Growth volume both retail and corporate

Further improvement of the commercial

effectiveness throughout the Group

Efficient cost control and risk management

19

AGENDA

Macro scenario

20

Second quarter consolidated results

Integration process

21

Integration project launched on 22 May and proceeding at full speed

14 Task Forces were created, with ~300 people involved in the

integration planning

Proper integration governance process in place, with bi-weekly Program

Leader reviews and monthly Steering Committees, managed by Project

Management Office on daily basis

INTEGRATION PROJECT SET UP

22Completed

Phase 1 Phase 2 Phase 3 Phase 4

-Integration

implementation

- „As is”

assessment of

operating models

- Evaluation of

spin off options

New Bank fully in place

- Preparation to disposal

- Preparation of high level integration plan

- Pre-closing integration activities

PROJECT APPROACH REFLECTING AMBITIOUS TIMETABLE

July 2006 October 2006 December 2007*

* final deadline from IT perspective to be validated

Business assessment

Pekao• Supervisory

Board

Program Leadership

Steering Committee

• UniCredit• BPH • Pekao

UniCredit sponsorship

Compliance/Legal /Tax

M&A

Corporate and

Treasury

Retail

Project Management Office

Working teams

Target outlets

Subsidiaries

Focused on supporting other teams in the first phase

Pekao• Management

Board

BPH• Supervisory

Board

BPH• Management

Board

Communication

• PR, HR, Legal, IR

Financials

HR

Logistics IT/Operations

Risk

Accounting

Spin-off/ integration

Subsidiaries

PROJECT ORGANISATION

23

24

TASK FORCES ACHIEVED SIGNIFICANT PROGRESS, IN LINE WITH EXPECTATIONS

Methodology for outlets selection developed

„As is” comparison of the operating models completed, with high level

aspirations for the New Bank close to completion

Retention plan for key resources prepared, program to exchange of

middle management planned

Comprehensive communication program in place

25

Appendix

26

BANKING SECTOR TRENDS

DYNAMIC OF HOUSEHOLDS LENDING IN THE POLISH BANKING SECTOR (% YTD)

-2

3

8

13

18

23

28

I0 II III IV V VI VII VIII IX X XI XII

2003 2004 2005 2006

DYNAMIC OF HOUSEHOLDS DEPOSITS IN THE POLISH BANKING SECTOR (% YTD)

-3

-2

-1

0

1

2

3

4

5

I II III IV V VI VII VIII IX X XI XII

2003 2004 2005 2006

DYNAMIC OF CORPORATE DEPOSITS IN THE POLISH BANKING SECTOR (% YTD)

DYNAMIC OF CORPORATE LENDING IN THE POLISH BANKING SECTOR (% YTD)

-2

3

8

13

18

23

28

33

38

I II III IV V VI VII VIII IX X XI XII

2003 2004 2005 2006

-6

-4

-2

0

2

4

6

I II III IV V VI VII VIII IX X XI XII

2003 2004 2005 2006

27

Source: Central Statistical Office, National Bank of Poland

1,80,8

0,40,71,4

3,44,44,44,4

1,71,7

0,5 0,8

4,24,2

4,64,54,9

5,96,6

6,96,1

5,55,65,2

5,3

4,04,5 4,04,5

5,06,06,5

6,5

5,85,35,35,35,3

2Q 03 3Q 03 4Q 03 1Q 04 2Q 04 3Q 04 4Q 04 1Q 05 2Q 05 3Q 05 4Q 05 1Q 06 2Q 06

Inflation EOP 3M WIBOR Intervention rate

INFLATION, INTERVENTION RATE, 3M WIBOR

4500,0

4550,0

4600,0

4650,0

4700,0

4750,0

4800,0

4850,0

4900,0

4950,0

2004

I III V VII IX XI

2005

I III V VII IX XI

2006

I III V

AVER. EMPLOYMENT IN ENTERPRISES SECTOR (THS.)

28

Dynamics of USD and EURO rates(average in month)

84,6

81,7

100,098,6

101,5

104,5

96,2

80,5

88,985,8

83,484,4

89,7

83,885,184,4

80,5

83,7

100,0

104,3

85,6

96,0

102,4

89,2

87,288,0

84,384,385,382,882,281,5

83,2

84,2

86,383,7

70,0

75,0

80,0

85,0

90,0

95,0

100,0

105,0

110,0

XII-

03 II IV VI

VIII X

XII-

04 II IV VI

VIII X

XII-

05 II IV VI

PLN/USD PLN/EURO

PROFIT AND LOSS ACCOUNT

29

(PLN mil)2Q06 2Q05 1Q06

% ch. 2Q06/2Q05

% ch. 2Q06/1Q06

Net interest income 577,1 588,9 573,3 -2,0% 0,7%

Net fees & commissions 468,8 381,2 460,1 23,0% 1,9%

Other non interest income 132,8 132,6 100,6 0,2% 32,0%

Total revenues 1 178,8 1 102,7 1 134,0 6,9% 4,0%

Operating costs (incl. depr.) -583,6 -577,8 -582,4 1,0% 0,2%

Operating income 595,2 524,9 551,6 13,4% 7,9%

Net provisions -51,4 -65,4 -58,4 -21% -12,0%

Subsidiaries' results 15,2 10,6 20,8 43% -26,9%

Gross profit 559,0 470,2 514,0 19% 8,8%

Tax -112,2 -75,3 -95,7 49% 17,2%

Net income 446,9 394,9 418,3 13% 6,8%

BALANCE SHEET

30

(PLN mil)

30.06.2006 30.06.2005 31.12.2005% ch.

30.06.06/30.06.05

% ch. 30.06.06/31.12.05

Cash and balances with Central Bank 3 028,0 3 200,0 3 574,7 -5,4% -15,3%

Loans and advances to banks 9 051,0 7 286,1 6 966,0 24,2% 29,9%

Loans and advances to customers 29 048,3 26 748,4 28 229,8 8,6% 2,9%

Net investment in the finance lease 859,9 638,5 745,8 34,7% 15,3%

Securities 20 124,4 18 722,8 18 774,4 7,5% 7,2%

Investments in associated undertakings 155,0 149,3 167,8 3,8% -7,6%

Tangible and intangible fixed assets 2 028,4 2 119,2 2 087,7 -4,3% -2,8%

Other assets 2 497,9 1 652,2 1 425,3 51,2% 75,3%

TOTAL ASSETS AND LIABILITIES 66 793,0 60 516,6 61 971,9 10,4% 7,8%

Amounts due to the Central Bank 1 839,0 2 054,2 1 950,7 -10,5% -5,7%

Amounts due to other banks 4 484,4 2 081,1 1 997,0 115,5% 124,6%

Amounts due to customers 49 866,0 45 993,8 46 847,8 8,4% 6,4%

Other liabilities 2 691,5 2 556,6 2 644,3 5,3% 1,8%

Provisions 90,1 106,2 109,2 -15,2% -17,5%

Share capital 166,8 166,5 166,5 0,2% 0,2%

Other capital and reserves 7 640,0 6 815,0 8 241,0 12,1% -7,3%

LIA

BIL

ITIE

SA

SS

ET

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