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Consolidated, unaudited figures, as of 31 December 2009, calculated according to the International Financial Reporting Standards (IFRS). Comparisons are made with the results as of 31 December 2008.

„The business results of Slovenská sporiteľňa followed the trends of the economy and the financial sector and were in line with our expectations. In 2009, we could rely on the trust of our customers, strong shareholder Erste Group Bank and thanks to a strong liquidity position, the bank provided a larger volume of housing and consumer loans compared with last year. We were also consistently pursuing our strategy to provide financial services for private individuals and companies and improving the efficiency,” said Štefan Máj, Deputy Chairman of the Board of Directors of Slovenská sporiteľňa.

FINANCIAL HIGHLIGHTS AS OF 31 DECEMBER, 2009 (Y/Y COMPARISON)

• Net interest income increased by 7% y/y from EUR 379 million to EUR 404 million.
• Net fee and commission income saw a slight decrease of 8% from EUR 119 million to
  EUR 110 million y/y.
  
• Operating profit reached EUR 269 million, which is slightly above the previous year’s operating profit of EUR 267 million.
  
• Profit after tax declined by 79% to EUR 30 million from EUR 142 million in 2008.
  
• Gross volume of loans and advances to customers grew by 6% from EUR 5.7 billion to EUR 6.1 billion y/y.
  
• Amounts owed to customers decreased by 9% from EUR 8.6 billion to EUR 7.8 billion y/y.
  
• Total assets decreased by 9% y/y to EUR 11.5 billion.
  
• Capital adequacy ratio achieved 10.49% (according to the NBS and Basel II requirements, and IRB approach) and thus exceeded the 8% limit stipulated by the law.                                                               

BUSINESS PERFORMANCE OVERVIEW OF SLOVENSKÁ SPORITEĽŇA
AS OF 31 DECEMBER 2009

Net interest income increased by 7% from EUR 379 million to EUR 404 million this year despite an unfavourable development of the economy and the financial sector in Slovakia. This positive trend was mainly supported by continued growth of the lending business, responsible interest policy and improved balance sheet structure.

Fee and commission income slightly decreased by 8% from EUR 119 million to
EUR 110 million y/y in line with expectations, mainly due to Slovakia’s accession to Single Euro Payment Area. This led to a harmonisation of fees collected for both foreign and domestic payment transfers. The lower fee and commission income was also influenced by a lower level of fees from mutual funds and also legal limitations with regard to charging fees for euro coins exchange for six months.   

Net trading result recorded an expected decrease by 61% from EUR 33 million to
EUR 13 million y/y, which was influenced by a lower volume of exchange rate transactions after the euro conversion.

General administrative expenses went down by 2% from EUR 264 million to
EUR 258 million. The overall development of costs last year was influenced by increased costs connected with the euro conversion which were offset by cost saving measures.

Consistent management of costs and expenses resulted in an operating profit of
EUR 269 million (posting an increase by 1% y/y). The cost income ratio was also improved and reached 48.9%. „Last year, our bank was again able to slightly increase the operating profit mainly resulting from business growth and consistent management of operating costs with a strong focus on efficiency improvement,” Š. Máj added. 

Risk costs rose by 81% from EUR 89 million to EUR 161 million reflecting the increased volume of loans, prudent attitude of the bank to credit risk assessment with regard to the economic situation and overall pressure on loan portfolio quality. Due to a more complicated macroeconomic situation in 2009, the bank applied changes resulting in higher portfolio provisions mainly for loans provided to corporate clients and real estate financing. Defaulted loans are covered by provisions (without taking collateral amount into account) at a comfortable level of 75%.

The difference in other operating result is influenced mainly by the positive influence in connection with the sale of Poisťovňa Slovenskej sporiteľne (as part of sale of insurance business in Erste Group to the new owner Vienna Insurance Group) with an effect of
EUR 36 million in 2008 and revaluation of certain assets of the bank with regard to the situation on financial markets and costs for legal disputes in 2009. The contribution into the Deposit Protection Fund was EUR 13 million. 

Profit after tax decreased by 79% in y/y comparison from EUR 142 million to EUR 30 million.
The volume of loans to customers increased by 6% to EUR 6.1 billion. Out of this volume, loans to retail customers accounted for EUR 3.4 billion, posting a y/y increase by 20% and increasing y/y market share from 23.9% to 25.9%. Housing loans recorded again the strongest growth dynamics of 27% y/y, owing to excellent sales results of the ÚverPLUS na bývanie housing loan. Increasing trend in consumer loans from the previous year continued, recording an increase by 13% compared to the same period of last year. Despite applying a responsible credit policy, Slovenská sporiteľňa provided more retail loans in 2009 than in 2008. 

Amounts owed to customers decreased by 9% y/y from EUR 8.6 billion as of 31 December 2008 to EUR 7.8 billion as of 31 December 2009, mainly due to outflow of large volume of deposits deposited by customers for the purpose of smooth conversion of Slovak crowns to euro at the end of 2008.

Retail deposits decreased by 6% from EUR 6.4 billion to EUR 6.0 billion.

Current ratings of Slovenská sporiteľňa (as of 31 December 2010):

Fitch Ratings  

Standard & Poor's  

  Business results of Slovenská sporiteľňa as of 31 December 2009