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Consolidated, unaudited figures, as of 30 June 2010, calculated according to the International Financial Reporting Standards (IFRS). Comparisons are made with the results
as of 30 June 2009.

„Slovenská sporiteľňa achieved excellent business results in the first half of the year, confirming the recent positive trend despite the difficult economic environment. Owing to the trust of our clients, we were able to grow in our business resulting in a 48% increase of operating profit. Along with strong focus on keeping operating costs under control and prudent risk management, we doubled our net profit to EUR 60 million. We continue to support our clients and the Slovak economy by steadily growing our credit portfolio, especially for retail clients,” said Štefan Máj, Deputy Chairman of the Board of Directors of Slovenská sporiteľňa.

FINANCIAL HIGHLIGHTS AS OF 30 JUNE 2010 (COMPARISON Y/Y)

• Net interest income increased by 16% from EUR 189 million to EUR 219 million y/y
• Net fee and commission income grew by 2% from EUR 53 million to EUR 54 mil y/y
• Operating profit reached EUR 160 million, 47% up compared to EUR 109 million in the first half of 2009
• Profit after tax increased by 100 % from EUR 30 million to EUR 60 million
• Volume of loans and advances to retail customers rose by 18 % to EUR 3.7 billion y/y
• Amounts owed to customers decreased by 3% from EUR 6.3 billion to EUR 6.1 billion  y/y
• Total assets increased by 3% to EUR 11.5 billion y/y
• Cost income ratio improved to 42.2%, from 55.8% in the first half of 2009
• Capital adequacy ratio reached 11,96% and and thus exceeded the 8% limit stipulated by the law (according to the NBS, Basel II requirements, and IRB approach)

BUSINESS PERFORMANCE OVERVIEW OF SLOVENSKÁ SPORITEĽŇA AS OF 30 JUNE 2010
Net interest income continued to develop in a positive trend and in the first half year increased by 16% from EUR 189 million to EUR 219 million It was supported by strong growth of retail loans during the whole last year and the first half of this year along with a responsible credit policy. Another factor influencing the development of the net interest income is the improved balance sheet structure while applying a consistent credit policy. 

Fee and commission income remained – also due to legislative changes - on a stable level of EUR 54 million compared with the first half year of 2009 when it reached EUR 53 million EUR, accounting for an increase of 2 %. Fees related to payment transfers and administration of clients’ accounts represented the largest share on fee and commission income. 

General administrative expenses decreased by 15% from EUR 137 million
to EUR 117 million mainly as a result of a strong efficiency improvement of the bank. Strict expenses management along with the growth of operating income resulted in an operating profit of EUR 160 million (increase by 47% y/y). The Cost income ratio also significantly improved to 42.2 % from last year’s 55.8%.

Risk costs rose by 21% from EUR 58 million to EUR 70 million compared with the same period of last year in line with our expectations and prudent attitude of the bank to credit risk assessment with regard to the general economic situation. Compared with H2 2009, risk costs are lower by EUR 33 million and the first half of this year indicates a positive trend in development of defaulted loans while at the same time applying a conservative approach to creation of provisions. Defaulted loans are covered by provisions (without accounting for collateral) at a comfortable level of 87 %, which represents an increase of 13 percentage points compared to the end of 2009.

Consolidated profit after tax was up by 100% from EUR 30 million to EUR 60 million y/y.  

The volume of loans to customers increased by 2% compared to first half of 2009 and reached EUR 6.1 billion. Loans to retail customers represent EUR 3.7 billion from this volume; they increased by 18.4 % in comparison with the same period of last year. Housing loans recorded a y/y growth of 23.5 % owing to excellent sales results of the Úver na bývanie housing loans. The growth trend of consumer loans continued from the previous year recording an increase by 13.1 % compared to H1 2009. „Slovenská sporiteľňa as the leader in retail loans knows well the market and behaviour of its clients. This knowledge enables us to correctly set up the risk processes and at the same time, we took advantage of our strong position in the liquidity area. As a result, we strengthened our dominant market share in housing loans and consumer loans while maintaining a healthy risk portfolio,“ said Štefan Máj, Deputy Chairman of the Board of Directors of Slovenská sporiteľňa.

Amounts owed to customers decreased by 5% from EUR 8.5 billion to EUR 8 billion in line with the development on the market. Retail deposits also dropped by 3% from EUR 6.3 billion to EUR 6.06 billion mainly due to the outflow of a high volume of deposits which were deposited by clients in the bank for the purpose of a smooth conversion from Slovak crowns to euros. On the other hand, the bank was able to significantly improve the deposit structure. At the end of June 2009, client deposits with a maturity of 2 to 3 years represented 2.6 percent from the volume of term deposits and at the end of June 2010, it was already almost 34.9%. 
 
Current ratings of Slovenská sporiteľňa (as of 30 June 2010):

Fitch Ratings 

Standard & Poor's