Annual General Meeting

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29 May 2015 | Annual General Meeting. Bank BPH 2014 Performance | 1

Annual General Meeting

Bank BPH. Po Prostu Fair

2014 Performance

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Overview of 2014

2014 net income of PLN 112 MM and pre-tax income of PLN 172 MM

Retail loans and commercial limits granted of PLN 7.3 B in 2014 …

good sale of core products … record high cash loans sale in 4Q

Focus on operational cost control … 2014 costs stable y/y

Impaired loans down PLN 650 MM y/y … NPL ratio down 2.2 pp. y/y …

effective debt sale, retail work-out and commercial restructuring …

loan losses of PLN 57 MM in 2014

CAR at 16.8% and Tier 1 at 14.3% under Basel 3 rules … liquidity and

market risk maintained at a safe level … good results of AQR and

stress tests

Profitability

Performance

Costs

Losses

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1. Rate cap … 47% portfolio* with significant profitability sensitivity vs. 31% market average … interest income impact of 234 MM y/y in 2013 and 85 MM y/y in 2014

2. CHF mortgage loans … six-pack … Mortgage Loans Restructuring Support Fund … stability fund … estimated cost ~30 MM

3. BFG charges increase

4. Interchange fee … drop from 1.5% in 2012 to 1.2% in 2013 to 0.5% in 2014 and to 0.2-0.3% in 2015 … net interchange income down from 40 MM in 2012 to 33 MM in 2013 and 29 MM in 2014

5. AQR reserve adjustments … expected impact ~30 MM

Regulatory landscape

48.5 48.1 52.3 53.7 55.1 _51.0 49.3 52.4 99.2 99.5 99.8 100.1 100.4 100.6 100.4 100.8 97 98 99 100 1Q'13 2Q'13 3Q'13 4Q'13 1Q'14 2Q'14 3Q'14 4Q'14 PMI Manufacturing (pts., average) Consumer confidence (pts., eop)

GDP & CPI inflation

(%, y/y)

Unemployment

(%, y/y)

Source: GUS, NBP, OECD, HSBC & Markit

*/ Gross loan book excl. mortgage loans; Market average based on listed banks data 14.3 13.2 _13.0 13.4 13.5 12.0 11.5 11.5 1Q'13 2Q'13 3Q'13 4Q'13 1Q'14 2Q'14 3Q'14 4Q'14

Economy

0.5 0.7 2.4 3.0 3.5 3.6 3.3 3.3 1.3 0.5 1.1 _0.7 0.6 _0.3 -0.3 _-0.7 1Q'13 2Q'13 3Q'13 4Q'13 1Q'14 2Q'14 3Q'14 4Q'14 GDP CPI

Confidence indices

Challenging banking environment

0.099% 0.109% 0.137% 0.239% 2012 2013 2014 2015 22% 21% 19% 18% 17% 16% 12% 10% Jan'13 Apr'13 Jul'13 Jul'14 Oct'14 Jan'15

4Q’14 portfolio* Corporate 26% 28 MM 32 MM 37 MM 65 MM SME 20% Retail cards 4% P-loans 38% Retail other 5% Other 7% Sensitive portfolio

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1,519 1,387 2013 2014

2014 financial performance

PLN MM

1,132 1,132 2013 2014

Costs

stable

Losses

59%

Net income

Revenues

9%

Growth portfolio

(eop) 3,833 4,027 5,208 5,054 2013 2014

Commercial Retail growth

16.4 16.8 13.9 14.3 2013 2014 CAR Tier 1 PLN 1.7 B liquidity buffer 112 112 81 2013 2014 112 192 Legal case settlement 33 MM Car park 26 MM MSA 22 MM Rate cap Interchange RANR 4% Basel 3 methodology 139 57 2013 2014 one-offs core core NPL ratio from 11.6 to 9.4

Capital ratios (%)

Stock performance

Net receivables

Retail exit

(eop) 2013 2014 13,548 _13,035 BPH -10% WIG stable WIG-Banki -1% sWIG80 -16% inflecting 4% Chart standardized to 100 9,041 9,081

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Retail performance highlights

Total retail sales*

(PLN MM)

Solid growth in retail sales

2,082

2,391

FY 2013

FY 2014

 15%

*/ Incl.: cash loans, mortgage loans, cards, overdrafts

Investments gross sales

(PLN MM)

1,016

1,148

FY 2013

FY 2014

 13%

Net receivables

(PLN MM, average, growth book)

5,103 5,066 5,041 5,046

1Q'14 2Q'14 3Q'14 4Q'14

C/A balance

(PLN MM, eop)

1,640

1,890

FY 2013

FY 2014

 15% 2nd place for

Maksymalne Konto Maksymalne Konto 2nd place for

1st place for cash loan ‚Multiczwórka’ among 2014 X-mas cash loans

1st place for mortgage offer

Consumers Award for mortgage loan

• C/A offer development … contracted as ZUS preferred bank

• Fair Line introduction … overdrafts sales up 38%

• Credit cards sales up 10% y/y … Fair Card 97% of the sales

• Investments offer development … new funds and SCDs

• Cash loans record high sales of over PLN 600 MM in 4Q … 89K

cash loans worth over PLN 2 B granted in 2014

• Bank BPH Brokerage Office trading volume -5% vs. -9% market

1st place for Lubię To! Konto

Account for teenagers Forsal.pl

Good positions in independent rankings

Cash loans up 11% y/y

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Commercial performance highlights

884 1,547

FY 2013

FY 2014

748

800

722

572 FY 2013

FY 2014

 75%

1,195

1,211

1,939

2,319

FY 2013

FY 2014

 13%

2,779

_2,680

FY 2013

FY 2014

 4%

Developing momentum in Commercial

SME sales*

(PLN MM)

Factoring turnover

(PLN MM)

Corporate sales*

(PLN MM)

C/A balance

(PLN MM, eop)

1,470

_1,373

3,134

3,530

Renewals New

• 6.5% y/y growth in total commercial sales

• Over 3.5K loans granted worth PLN 460 MM under BGK’s

de

minimis

program

• Strengthened advisors sales channel in factoring … revenues

up 78% y/y

• # of card transactions up 45% to 2.6 MM … value up 21% to

PLN 249 MM

• Expanded functionality of the internet platform … 17 MM

transfers, up 13% y/y

 7% */ Limits granted  7%

3,741

_3,624

3,714

3,807

1Q'14

2Q'14

3Q'14

4Q'14

Net receivables

(PLN MM, average, excl. one-offs)

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Executed in 2014 …

Digitization

Branch network

BPH TFI

• Biometric ’Finger Vein’ technology expanded to cover in-branch transaction confirmation … ~130 K clients

• Fully ’paperless’ sales of key retail products through Sez@m internet banking platform added in 4Q’14

• New mobile application and NFC payments in 1H’15

• Network optimization … 12 new franchise branches in 2014 … 37 own branches modernized

• 2nd Investment Center opened in Kraków • 170 dedicated personal banking and 20

mortgage loan sales advisors in place

• New strategy – focus on improvement in investment results

• PLN 25.9 MM net income for 2014, stable y/y • New funds in offer in 2014 … BPH Pieniężny

subfund (money fund) with assets reaching PLN 187 MM and within Top 5 returns in the category* … BPH Obligacji Korporacyjnych (corporate bonds) with assets of PLN 93 MM • 1st place for ’Strategia o wysokim

standardzie’ in ’Gazeta Giełdy Parkiet’ ranking of asset management services**

*/ BPH Pieniężny subfunds results up 2.14% - half-year return as of 31 January 2015; ranked 5 out of 46 within money funds category **/ Published in January 2015; in the group of stock portfolio managers

278 262

160 172

YE 2013 YE 2014 Own branches Franchise

438 434

Fair Play Bank

• RESPECT Index • Ombuds

• Customer Council

• Customer Complaint Resolution Process

Complaints

Key initiatives

Net Promoter Score

18% 20% 1Q'14 1Q'15 (range from -100 to +100) 5,050 5,200 2013 2014 No. of complaints on banks to KNF 138 86 2013 2014 No. of complaints on Bank BPH to KNF  3%  38%

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21% market*

Working environment

Employee survey

1. Various coaching programs

2. New working environment in Gdańsk and Kraków

3. PLN 38 MM investment in IT stability

4. Introduction of life insurance

5. HealthAhead

Training and development

Employee attrition

Labor law cases

Closed 48 32 2013 2014 33% 8.5% 5.2% 2.7% 20.6% 7.6% 4.7% 2.0% 13.9% 8.6% 4.2% 1.5% 15.4%

Sales Voluntary High performers Total 2012 2013 2014 2 lost 63 64 69 71 78 82 63 73 76 79 82 84 Talent development Effective communication & challenge Incentives Performance/ recognition Tone from the Top Accountability

Bank BPH GE Capital

Risk Culture Survey 2015, favorable answers (%)

218 events delivered

(vs. 160 in 2013)

3,121 employees & managers trained

(vs. 2,200 in 2013)

89 internal trainings

1,300 participants 39 external trainings 590 participants 23 leadership programs 350 participants 400 hours 459 participants 21,093 hours 45 trainings 600 participants

Employees who left the Bank vs. average headcount in Bank BPH

*/ Market benchmark; total attrition median (8 banks, FY 2014 & January 2015 data)

New 11 lost 32 38 2013 2014 19%

Key initiatives

41 cases open (YE 2014)

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Strategic directions

1. Differentiate on ”Fair Play”

• Emphasis on being a ”simple & transparent” partner

• Consistently improving customer experience

2. Grow the core

• Maintain market position in mass segment - focus on cash loan and primary relationships

• Develop wealth management program to achieve leadership in mass affluent segment

• Grow share in SME and high return Mid-Cap with an emphasis on primary banking relationships

3. Safe & Secure

• Operate within ”Risk Appetite Statement” tolerances

• Compliance with all regulatory ratios

• Be recognized as strong on global and local regulatory agenda

4. Continued investment in Infrastructure

• ”Healthy” technology platform

• Customer facing infrastructure, digitization & innovation

• Employee engagement & development

A healthy and friendly middle market champion generating long term value for

customers, stakeholders, employees & community

GE exploring strategic options & focus on long-term profitability … ongoing strategy monitoring

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GE Capital’s shareholding in Bank BPH

Building financial business in Poland

1995

GE enters Polish financial sector and creates GE Capital Bank

2008

GE acquires majority stake in Bank BPH

2009

Legal merger of Bank BPH & GE Money Bank

Providing appropriate support to GE during their process to explore

sale of their majority stake in Bank BPH

Strategic investment decisions

• Currently early stage of discussions … a variety of

interested parties

• GE’s on-going continued full support for Bank BPH …

funding maintained

• Bank BPH continues to focus on servicing customers

and operates as usual

Oct .

2014

GE informs that is exploring strategic options

for the sale of its stake in Bank BPH …

investment banks and other advisors

engaged … KNF informed

Apr.

2015

GE announces its plans to reduce the size of

GE Capital through the sale of most its assets

and focuses on continued investment and

growth in its industrial and manufacturing

businesses … Bank BPH is also in scope

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