CA~IB Annual Emerging Europe Conference 5-6 October 2006, Istanbul.

CA~IB Annual Emerging Europe Conference5-6 October 2006, Istanbul

2

Overview

BRD, the second largest bank in Romania, is part of the Societe Generale Group, one of the leading financial services provider in Europe (45,1 bln. Euro market capitalization).

BRD – GSG is operating as a universal bank, active in retail, corporate and investment banking, directly or through subsidiaries: BRD SOGELEASE – financial and operational leasing; ALD AUTOMOTIVE – car fleet management; BRD FINANCE – point of sale consumer loans; BRD SECURITIES – brokerage house; SG ASSET MANAGEMENT BRD – asset management firm; BRD/SG CORPORATE FINANCE – investment banking advisory services.

3

Summary

I. Key figures

II. Strong five-years performance

III. Positive outlook in the context of EU integration

4

Share capital EUR 210 million

Shareholder’s Equity EUR 546 million

Number of shares 696,901,518

Nominal value of the shares EUR 0,3

Market capitalisation (August 2006) EUR 3.5 bil

BRD, Key FiguresBRD, Key Figures

Societe Generale 58,33%

Others11.43%

BERD4,99%

SIF Banat Crisana4,73%

SIF Oltenia5,34%

SIF Muntenia5,27%

SIF Transilvania5,00%

SIF Moldova5,05%

5

STEADY GROWTH OF SHARE PRICESTEADY GROWTH OF SHARE PRICE


BRD capitalization exceeds 1 bilEUR

Variation of BRD shares price compared to BET

(1 January 2001 = 100)

0

500

1,000

1,500

Jan-

01

Apr-0

1Ju

l-01

Oct-

01

Jan-

02

Apr-0

2Ju

l-02

Oct-

02

Jan-

03

Apr-0

3Ju

l-03

Oct-

03

Jan-

04

Apr-0

4Ju

l-04

Oct-

04

Jan-

05

Apr-0

5Ju

l-05

Oct-

05

Jan-

06

BRD

BET

CBRD capitalization exceeds 1 bil EUR

BRD capitalization exceeds 2 bil EUR

BRD capitalization exceeds 3 bil EUR

6

NET BANKING INCOME

GROSS OPERATING INCOME

NET PROFIT

TOTAL ASSETS

SHAREHOLDERS’ EQUITY

BRD, Key figuresBRD, Key figures

2003 ( mil € )

(*)

(*)

(*)

203 211

100

63

1,975

290

92

72

1,830

237

267

2004 ( mil € )

139

89

2,956

379

367367

198198

5,25,22727

151533

551212

2002 ( mil € )

2005 ( mil € )

EMPLOYEES 4,340 4,250 4, 500 6,0006,000

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COST/INCOME RATIO

ROE

BRD, Key figuresBRD, Key figures

2001 2002 2003 2004

48,9% 54,2% 52,6% 48%

34,9% 30,7% 24,7% 30%

2005

47%

37%

8

Market share

Corporate Loans 15%

Loans to individuals 20%

Corporate deposits 18%

Individuals deposits 16%


Number of cards 23%

26%Placement funds

9

RATINGRATINGS BRDS BRD

BRD – key figuresBRD – key figures

FITCH

Short term foreign currency debt F2

Long term issuer default A-

Support 1

Long term rating perspective Stable

Moody’s

Long term foreign currency debt Ba2

Financial strength perspective Positive

FITCH AA

Moody’s Aa2

S&P AA-

RATING SOCIETE GENERALERATING SOCIETE GENERALE

10

Summary

I. Key figures



11

178

2,055

191

441326

212181

1,059

1,327 1,2491,366

1,622

910

1,3941,784

1,006591670

6,645

4,365 4,258

5,636

4,5664,507

-

500

1,000

1,500

2,000

2,500

2001 2002 2003 2004 2005 30 Juin 2006

-

1,000

2,000

3,000

4,000

5,000

6,000

7,000

Nombre d'agences Nombre de clients actifs (y.c. BRD Finance) x 1000

Nombres de cartes x 1000 Effectifs

STRONG FIVE YEARS PERFORMANCESTRONG FIVE YEARS PERFORMANCE

Number of units

Number of cards x1000

Number of active clients (including BRD Finance) x 1000

Staff number

12

2001 2002 2003 2004 2005 30 Juin 2006

Cost income

ratio48,9% 54,2% 52,6% 47,8% 46,8%

1 394

1 105

808

627523

Cost

Net Income

652

742

528

577

425340

261

383

287

262

REVENUES AND PRODUCTIVITY (MRON)

49,6%

806

406

400

Operating Income

+25%

+16%+14% / year

STRONG FIVE YEARS PERFORMANCE

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NET BANKING INCOME

Total = 1.403 million RON

Interest margin770 million RON

(2004: +2,5%)

554,94,9%%110,40,4%%

34,734,7%%

Commissions487 million RON

(2004 +27,5%)

OthersOthers141466 mmilillionlion

RONRON

Structure of the net banking income in 2005

Net banking income(BRD consolidated)

(million RON)

2001 2002 2003 2004 2005

526

627

808

+1%

+13%

1.105

+25%

1.403

+17%

% - evolution in comparable terms

(2004 = 32%)(2004 = 32%)

(2004 = 63%)(2004 = 63%)

14


1.8582.524

3.6514.839

6.1107.325

272499

1.361

2.158

4.354

7.086

2001 2002 2003 2004 2005 30 Juin 2006

2 129

3 023

5 012

CLIPRI49%

CLICOM51%

+32% / year

6 997

+28%

+38%

10 464

14 410

+32%

CREDIT EXPANSION (MRON)

15

STRONG FIVE-YEARS PERFORMANCESTRONG FIVE-YEARS PERFORMANCE

A BALANCED DEVELOPMENT OF CREDITS AND DEPOSITS

2001 2002 2003 2004 2005

Loans to customers(BRD consolidated)

(end of period, millions of RON)

2.129

3.023

5.012

Individuals42%

Legal entities58%

+32% / an

2001 2002 2003 2004 2005

Customers’ deposits(BRD consolidated)

(end of period, millions of RON)


4.121

4.844

6.115

Individuals36%

Legal entities64%

+22% / an

8.587

6.997

+28%

+57%

+28%

+38%

14.681 10.464

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BRD FINANCE – POINT OF SALE CONSUMER LOANSBRD FINANCE – POINT OF SALE CONSUMER LOANS


T4 04 T1 05 T2 05 T3 05 T4 05

Balance of loans to customers(million RON)

83

131

178

259

338

Loans by card

BRD FINANCE started operations in 2004

Loans granted in stores

+ 274%/trim


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BRD SOGELEASE – A TOP PLAYER ON THE LOCAL MARKET

STRONG FIVE YEARS PERFROMANCESTRONG FIVE YEARS PERFROMANCE Leasing portfolio evolution(end of period, milions of RON)

Total market (Output 2005) = around 7.250 million RON (55% held by bank subsidiaries 55%)

2002 2003 2004 2005

+281%

+54%

+28%

56

343

409

566

+ 96%/an


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TOTAL COMMITEMENTS (BRD consolidated)

2001 2002 2003 2004 2005

Total assets

5,4 6,4 8,2 12,1 19,8

(end of period, billion RON)13,8

9,5

6,9

4,6

2,7

+34%

+26%

+34% / an

Loans

Off-balance sheet commitments (*)

(*) Unused limits, letters of indemnity, letters of credit etc

10,5

3,3

7,0

2,5

5,03,02,1

1,9

1,6

0,6



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2001 2002 2003 2004 2005


Breakdown of OC Growth in 2005- Development of activity 5,8%- Social costs 4,4%- Others 2,3%- ∆ Consolidation area 1,3% 13,8%

Investments 2005: 29 million€ (2001-2005 164 million €)

CAREFULLY MANAGED OPERATING COSTS Operating cost

(BRD consolidated)(million RON)

425

340

257

+12%

+9,5%

528

+13,7 %

652

+13,8 %


20

6.997

2.129

3.023

5.012

10.464

2001 2002 2003 2004 2005


Decrease in the cost of riskNCR/loans = 0,74 % in 2005(2004: 0,87%)

Decrease in the n° of non-performing loans also due to the improvement of the business environment in the past few years

COST OF RISK WELL UNDER CONTROL Net Cost of Risk (NCR)

(BRD consolidated)(million RON)

Non-commercial4

Commercial77

14 16

77

NPL/Total loans 1,7% 2,9% 2,2%

Total loans(millionRON)

1,4%

722003: a new calculation

method, according to

NBR regulations

81

1.0%

21

Operating profit

Cost of Risk

ROE

205 225 244

370335

1416

77

72

81

16

569

30,4%

34,9%

30,7%

24,9%

38,3% 37,2%

2001 2002 2003 2004 2005 30 Juin 2006


406

742

577

383

287 523

RBE

RETURN ON EQUITY

22

Summary

I. Key figures



23

MACROECONOMIC TRENDS

The EU integration process will continue to have a positive impact on Romania’s economy: Estimated average growth in the range of 5-6.5% per year for the next five

years; Discipline in public policies will be encouraged due to EU monitoring;

o Romania has already a low public deficit and public debt, while inflation is continuously coming down.

Foreign investment is encouraged by increased stability Convergence forces will play an increasing role as the country moves

towards the euro. EU funds (30 bn. Euros until 2012) can help in much needed infrastructure

improvement.

POSITIVE OUTLOOKPOSITIVE OUTLOOK

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SIGNIFICANT GROWTH POTENTIAL FOR THE FINANCIAL SECTOR

The Romanian financial sector is less developed than CEE peers: Penetration rate for banking services is less than 30%; Non-government loans at 21% of GDP; Households’ stock of debt is less than 20% of GDP; 9000 inhabitants per banking unit; Around 17% of adult population has a bank card;

Catch up expected if other countries’ experience is to be considered relevant.


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BANKING SYSTEM INCREASINGLY COMPETITIVE


Structure of the banking system – 39 banks and subsidiaries of foreign banks. In 2006 over 90% of the banking assets owned by foreign banks:

1 Romanian private bank: Banca Transilvania 1 Romanian state owned bank (the Savings House) About twenty foreign banks, of which:

o 3 Austrian (BCR/Erste, Raiffeisen, Volksbank);o 2 Dutch (ING, ABN Amro)o 1 American (Citibank)o 4 Italian (of which Unicredit/HVB Tiriac)o 6 Greeko 1 Hungariano 1 French (BRD – GSG)

26


STRUCTURE OF THE BANKING SYSTEM – by market share in loansSTRUCTURE OF THE BANKING SYSTEM – by market share in loans

Banca Transilvania

4%

ING5%

Tiriac+HVB +Unicredit

10%

30 Other Banks25%

BCR25%

Raiffeisen Bank10%

Banc Post5%

BRD16%

27

BANKING SYSTEM INCREASINGLY SAFE


Improved regulations and strengthened supervision of the National Bank of Romania have contributed to increased safety of the banking system: Compliance with EU regulations, international accounting

standards became the norm;

Strict anti money laundering legislation;

Good capitalization of the banks (CAR 12% NBR threshold, most banks have more than 15%);

Some risks related to the foreign currency lending;

But the National Bank is taking preventive measures (high regulatory reserves; administrative constraints on credits);

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BRD IS WELL POSITIONED TO TAKE ADVANTAGE OF THE MARKET DYNAMICS BRD IS WELL POSITIONED TO TAKE ADVANTAGE OF THE MARKET DYNAMICS


BRD’s main competitive advantages: Presence on all segments of the market – retail, micro finance, SMEs,

corporate clients, private banking, investment banking, asset management – with carefully tailored products;

Best network coverage – over 500 agencies all over Romanian territory; Excellent knowledge of the local market combined with the commercial

expertise of Societe Generale; Efficient organization and procedures – advanced integration with Societe

Generale’s procedures, organization, risk management, internal audit functions, financial consolidation etc.

Easy access to financing due to the good rating and SG’s support; Good capacity to innovate in response to market tendencies; Close contacts with Romanian central and local authorities and international

financial institutions;

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A RAPIDLY EXPANDING NETWORK

12 + 7 9 + 5 13 + 5

5 + 2

5 + 4

10 + 8

9 + 11

37 + 26

11

15 + 9

6 + 2

16 + 5

8 + 5

11 + 6

19 + 6

16 + 7

10 + 6

+ 114 agencies opened in 2005

+ 175 agencies opened in 2006 (until September)

(BRD Express)

Focus on high growth potential areas

VALAHIA

CA~IB Annual Emerging Europe Conference 5-6 October 2006, Istanbul.

Documents

cost brd

years performance slide

bil brd

overview brd

brd gsg

key figures slide

net banking income brd

key figures brd capitalization