VUB Group net profit of EUR 33.9 mil

Bratislava, April, 30. 2010 – VUB Group, the member of international banking group Intesa Sanpaolo, earned in first quarter of 2010 operating profit of EUR 62 mil. and net profit of EUR 33,9 mil. The Group´s net loan portfolio reached EUR 5.9 bn, representing 2% y-o-y growth.

VUB Group revenues in first quarter of 2010 reached the level of EUR 116.7 mil., representing moderate 3.4% decrease y-o-y, mainly as a result of decreasing loan rates as well as sluggish performance of the leasing subsidiary due to the lasting effects of the economic crisis. On the other hand, the net fee income was up 15% y-o-y, driven by increased contributions from sale of mutual funds and insurance products.

Operating expenses recorded a nominal increase by 15.6%, only due to the fact that in first quarter 2009 VUB Group released litigation reserves created in prior years for an amount of EUR 11.5 mil. Without this extraordinary effect, operating expenses would show an actual drop of 7,7% y-o-y. This was achieved through higher cost efficiencies Group wide, which led to a further remarkable drop of cost/income ratio to 46.9%, from 48.9% the year before (without extraordinary effects).

The consolidated operating profit before impairment and provisions reached EUR 62 mil., which represents 15.6% nominal drop y-o-y, again due to the above mentioned extraordinary effect, without which the Group profit from operations would be at the same level as the year before. Profit before tax reached level of EUR 42 mil., recording nominal drop of 12.5% y-o-y, but actual increase of 17%.

The volume of VUB Group net loan portfolio reached EUR 5.9 bil. representing 1.5% actual y-o-y growth. Deposits reached volume of EUR 6.7 bil., representing 5.4% y-o-y decrease, mainly due to expected outflow of “EURO related” deposits which came to bank at the end of 2008 and partially to the shift of retail deposits to the Group´s asset management operation, which increased its volumes by almost 79% y-o-y. In any case, the Group’s Loan/Deposit Ratio is still standing at the comfortable level of 88%.

Selected financial indicators from the consolidated income statement:

Selected indicators from the consolidated balance sheet:

The VUB Group comprises VUB bank and its 100% subsidiaries: Consumer Finance Holding, VUB Asset Management, VUB Factoring, VUB Leasing and Recovery. The consolidation perimeter also includes VUB Generali DSS (50% share).