VUB Group’s Operating Profit Up by 19%

Bratislava, October 30, 2007 – In the first three quarters of 2007 VUB Group earned a consolidated operating profit of SKK 4.8 bln. and a net profit of almost SKK 3.3 bln. representing a 19% and 24% y-o-y increase respectively. The Group’s loan portfolio rose by nearly 35% y-o-y to SKK 115.6 bln.

Continuing significant rise in mortgage and consumer finance volumes in combination with positive development in corporate loans and net trading income favourably impacted VUB Group revenues in the given period.

Operating profit of the VUB Group grew by 19% y-o-y reaching the volume of SKK 4.75 bln. With operating expenses dropping by further 2.9% y-o-y resulting from cost optimization, the Group continued to strengthen efficiency of its operating platform to arrive at Cost/Income Ratio of 49% compared to 53% the year before.

The volume of VUB Group’s loan portfolio totalled SKK 115.5 bln. leaping thus by 35.5% y-o-y. Financing of real estates marked a massive 47% growth recording SKK 46.2 bln. at the end of September. Also consumer loans portfolio went up by 16% standing at SKK 19.7 bln. at the end of the reviewed period.

Moreover, the VUB Group has continued to collect more deposits from customers by 9% totalling SKK 195.4 bln. with strong contributions from both the retail and corporate segments.

Selected financial indicators from the consolidated income statement:

SKK mil.	September 2007	September 2006	Change
Operating income	9,524	8,910	6.9%
Operating expenses	(4,771)	(4,911)	-2.9%
Operating profit before impairment and provisions	4,753	3,999	18.9%
Profit before tax	4,108	3,298	24.5%
Net profit for the year	3,319	2,675	24.1%
Basic and diluted earnings per share	256	206	24.1%
Cost Income Ratio	49%	53%	-8.3%

Selected indicators from the consolidated balance sheet:

SKK mil.	September 2007	September 2006	Change
Loans to customers	115,577	85,813	34.7%
Deposits from customers	195,409	179,249	9.0%
Total assets	262,980	235,958	11.5%

The VUB Group consists of VUB, a.s. and its 100% subsidiaries: Consumer Finance Holding, a.s., VUB Asset Management, a.s., VUB Factoring, a.s., VUB Leasingová, a.s. and Recovery, a.s. In addition, the consolidated data also include VUB´s stakes in VUB Generali DSS, a.s. and Slovak Banking Credit Bureau, s.r.o.

On July 20th 2007, the Bank signed an agreement on acquiring a 70% stake in B.O.F., a.s. leasing company pursuing thus its strategy to enhance its SME business franchise. The transaction is to be completed by the end of 2007.

VUB is a member of the international banking group Intesa Sanpaolo operating in more than 40 countries worldwide. The Bank runs 207 retail branches and 11 mortgage centres throughout Slovakia. VUB also operates 35 corporate branches, the widest network of its kind in Slovakia, specializing in servicing SME clients and municipalities.

Information for media:
Alena Walterová
Spokeswoman and Head of Press Sub-department
Corporate and Marketing Communication Department
Tel.: +421-2-5055 2130
E-mail: awalterova@vub.sk

Štefan Demovič
Head of Financial Reporting and Accounting Governance
Tel.: +421-2-5055 2502
E-mail: sdemovic@vub.sk