GE Money Bank. Annual Report 2005

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epor

t 2005

GE Money Bank, a.s.

BB Centrum

GE Money Bank

Annual Report 2005

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Content:

1 Opening word

– Opening word

– Financial results of GE Money Bank, a.s., in 2005

5 Basics data about the bank

– Description of GE Money Bank, a.s. – The Bank’s Shareholders

– Overview of the Bank’s Operations

11 Information on bank management

– Supervisory Board, Board of Directors and Management of the Bank – Members of the Supervisory Board

– Members of the Bank’s management

17 Board of Directors’ Report

– Board of Directors’ Report on Operations and Assets – Economic results of GE Money Bank, a.s.

21 Sophisticated Economic Indices of the Bank

– Basic Economic Data of GE Money Bank, a.s.

25 Forecast for 2006

27 Auditor’s report to the shareholders of Bank

– Supervisory Board Report – Auditor’s report

31 Charity and sponzoring

35 Report on Relations between Related Parties

43 Financial Statements

– Assets – Liabilities

– Off-balance sheet items – Profit and loss account – Summary of changes in equity

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2005 was successful not only for GE Money Bank, a.s. but also for its customers and partners, as well as for the General Electric (GE) Group as a whole. GE, one of the largest global companies based on market capitalization, of which GE Money Bank, a.s. is a key part, generated a net profit after taxes of USD 16.3 billion in 2005. The profit of the financial division, GE Money (GE Consumer Finance), which represents one of the six GE divisions, was more than USD 3 billion in 2005. GE Money provides financial products including credit cards, consumer loans, sales – finance loans, leasing and mortgages to more than 120 million customers in 51 countries all over the world. Total GE Money assets at the year end reached USD 158.8 billion. The GE Annual report 2005 is available at www.ge.com.

GE Money Czech Republic and Slovakia is one of the most important GE businesses in Central and Eastern Europe. In the Czech Republic, GE Money (GE Consumer Finance) is represented by GE Money Bank, a.s. together with GE Money Multiservis, a.s. and GE Money Auto, a.s. In 2005 GE Money Bank, a.s. continued its dynamic growth particularly in relation to its lending products linked to the new brand. GE Money Bank, a.s. has maintained a very clear-cut profile since the very beginning – to retail and corporate clients we want to provide quick, easy, and affordable products and services that can be flexibly adjusted to their needs.

In 2005 GE Money Bank, a.s. introduced a number of new products

before selecting a property), and Expres Business, a fast and flexible loan for small and medium-sized enterprises (SME). Since the spring of 2005, GE Money Bank, a.s. has been the only European bank through whose ATMs clients can apply for credit (thanks to the unique Infolimit service), and since November 2005 GE Money Bank’s clients have had access to fully-fledged electronic account statements.

As at 31 December 2005 the volume of provided Expres Loans totalled CZK 17.2 billion, which represents an increase of 29% in comparison with the total volume of CZK 13.3 billion at the end of 2004.

The volume of granted mortgage loans grew at an even faster rate; primarily due to interest rates, which hit a record low. GE Money Bank, a.s. guarantees its interest rates to all clients who meet the scoring requirements; thanks to this approach, clients know from the start what interest rate the bank will offer for a particular type and amount of mortgage loan and the period for which the rate will be fixed. Moreover, in 2005 the bank significantly simplified and accelerated the mortgage loan approval process. At the end of 2005 the volume of mortgage loans totalled CZK 10.4 billion, which represents growth of 38.2% in comparison with the end of 2004 (CZK 7.56 billion).

The popularity of loans for small and medium-sized enterprises also surged last year. At the beginning of 2005 the newly re-branded GE

OPENING WORD

Dear customers,

shareholders, colleagues,

Last year was a year of change for GE Money Czech

Republic. As of 17 January, 2005 all GE Capital businesses

operating in the Czech market were re-branded to GE

Money, including GE Money Bank, a.s. The new brand was

successfully established on the market through the launch

of new products and services. As a result, loans to

customers increased to CZK 47.9 billion (an increase of

28.8%), the net profit reached CZK 2,673 billion

(an increase of 19.2%) while the capital adequacy remains

stable at 23.41%. The number of customers grew to

806 708 (an increase of 7.8%) and the number of current

accounts increased by 2.6% to 948 306.

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OPENING WORD

whereby business clients can now obtain an any-purpose loan of up to CZK 0.5 million: the business client needs only to provide his income tax return and the bank will communicate a provisional decision on the loan within a few minutes of filing the application. The bank also introduced its new Operative Business any-purpose loan by means of which business clients can obtain any amount from CZK 300,000 to 5 million. As at 31 December 2005 the overall portfolio of loans to this customer segment amounted to CZK 17.36 billion. In comparison with the portfolio at the end of 2004 (CZK 14 billion) this represents an increase of 24%.

In respect of deposit products, client demand focused on the new Konto Genius account, whose key competitive advantage is its flexibility and low charges. With a Konto Genius account, the client can select more products and services at his own discretion in addition to a current account, and can add, remove, or change them as required. By the end of 2005, one-half of current accounts had been opened as part of a Konto Genius package.

At the end of 2005 GE Money Bank, a.s. had 224,000 registered users of its Internet Banka, i.e. 20% more than at the end of 2004. Transactions entered via Internet Banka accounted for 23% of all transactions. Overall, direct banking accounts for 77% of all transactions.

In 2005 GE Money Bank, a.s. increased the number of its branches to 201 (up by 9 branches year on year), while the number of its ATMs rose to 390, up by 28 year on year.

GE Money Bank, a.s. emphasizes recruitment of the best people on the market, their professional development and an enhanced motivation system for existing employees. We invest heavily in training and development opportunities, coaching, comprehensive

feedback and internal traineeships in other departments or abroad. GE Money Bank, a.s. also strengthened its employee benefits. We are well aware that only good and motivated employees are able to deliver the results expected by our clients and shareholders.

Our strategy remains unchanged. A team of excellent employees, product innovation and simplification and improvement of our processes through digital technology are the key building blocks for our success. Fast, simple and accessible services and processes make GE Money Bank, a.s. a bank which is growing, profitable and secure.

Thank you for your support and I am looking forward to another successful year in 2006.

The best things are only ahead of us.

Gerard Ryan,

Chairman and CEO GE Money Bank, a.s.

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OPENING WORD

Financial results of GE Money Bank, a.s. in 2005

Year-on-year change Year-on-year change Year-on-year change Year-on-year change Year-on-year change

Number of

clients

Number of

deposit accounts

Number of

payment cards

Number of

branches

Number of ATMs

Expres loan volume

(billions of CZK)

Mortgage volume

(billions of CZK)

Loans for

SME volume

(billions of CZK) Year-on-year change Year-on-year change Year-on-year change

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BASIC DATA ABOUT THE BANK

Description of GE Money Bank, a.s.

as at 31.12. 2005

Business name:

GE Money Bank, a. s.

Registered office:

Vyskočilova 1422/1a, Prague 4-Michle

Registration No:

25 67 27 20

Legal form:

joint-stock company

Date of incorporation:

9 June, 1998

Date of last change:

26. 7. 2005

(reason: changes in the representation on behalf

of GE Money Bank, a.s.)

Registered Capital:

CZK 510,000,000

Status:

100% paid up

Type, form, and nominal value of issued shares:

510 registered common stock shares in documentary form, each with a nominal value of CZK 1,000,000

Own shares held, interim documents and other securities with the right to be exchanged

for own shares:

GE Money Bank, a.s. does not hold any own shares or similar securities.

Increase in registered capital:

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Supervisory Board

Position

Since

James Desmond O’Shea

Chairman

22. 10. 2004

Suzan Elizabeth Crichton

Member

22. 6. 2004

Pavel Zídek

Member elected by employees

29. 11. 2005

Board of Directors

Position

Since

Gerard Ryan

Chairman

03. 12. 2002

Christoph Glaser

Member

05. 05. 2005

Miroslav Červenka

Member

28. 11. 2002

Jan Rollo

Member

29. 10. 2003

Number of staff, recalculated (as at 31. 12. 2005):

Centre

949 employees

Points of sale

1079 employees

Total

2028 employees

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The Bank’s Shareholders

GE Capital International Holdings Corporation

Corporation Trust, 1209 Orange Street, Wilmington, Delaware, the United States of America

100% stake in the voting rights

100% direct stake in the registered capital of the Bank

Subject of business:

foundation of subsidiaries with registered offices outside the United States of America, exercising of rights related to the respective ownership interests and provision of funds to the founded companies through loans or otherwise.

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Overview of the Bank’s Operations

The following activities may be carried out according to the licence to operate as a bank:

1. accepting deposits from the public; 2. providing loans;

3. investments in securities on own account; 4. financial leasing;

5. clearing and settlement;

6. issuing payment instruments such as payment cards, traveller’s cheques; 7. issuing guarantees;

8. opening letters of credit; 9. administering collections;

10. trading on own account or on clients’ account:

with foreign exchange (on own account without limitation, on clients’ account with the exception of foreign securities and currency derivatives);

with futures and options including currency and interest deals (on own account with the exception of the purchase and sale of derivatives on own account for another person)

with transferable securities (trading on own account with the exception of the purchase and sale of securities on own account for another person);

11. financial brokering;

12. consultancy on business matters; 13. services as a depository;

14. exchange operations (purchase of FX); 15. provision of banking information; 16. lease of safety boxes;

Overview of basic operations and services carried out by the Bank:

Business in crowns:

1. opening and maintaining current, term and savings accounts denominated in Czech crowns and related services; 2. cheque administration;

3. passbooks;

4. local letters of credit and collections;

5. credit and commercial services (commercial, consumer, mortgage loans); 6. bill administration;

7. bank guarantees; 8. purchase of receivables.

FX business:

1. opening and maintenance of FX current and term accounts; 2. exchange operations;

3. foreign letters of credit and collections; 4. clean payments; 5. cheque services; 6. bank guarantees; 7. bill administration; 8. providing loans; 9. factoring, forfeiting

Other products and services: 1. card services (by card types); 2. information and consultancy services; 3. providing banking information; 4. exchange of banknotes and coins.

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Information on bank

management

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INFORMATION ON BANK MANAGEMENT

Supervisory Board, Board of Directors and

Management of the Bank

Supervisory Board

James Desmond O’Shea

Susan Elizabeth Crichton

Pavel Zídek

Chairman

Member

Member elected by the employees

Held since: 22. 10. 2004 Held since: 22. 6. 2004 Held since: 29. 11. 2005

Board of Directors

Gerard Ryan

Christoph Glaser

Miroslav Červenka

Chairman Member Member

Held since: 3. 12. 2002 Held since: 5. 5. 2005 Held since: 28. 11. 2002

Jan Rollo

Member

Held since: 29. 10. 2003

Division Division Director Position Held since

HR Niamh Hegarty Chief Human Resources Officer 1. 7.2005

Risk Management Pavel Vyhnálek Chief Risk Officer 1. 7. 2002

Legal Tomáš Černý Chief Legal Counsel 1. 4. 2005

Retail Banking Jan Rollo Chief Retail Banking Officer 1. 11. 2003 Commercial Banking Radomil Štumpa Chief Commercial Banking Officer 1. 11. 2003

Marketing Erich Čomor Chief Marketing Officer 14. 6. 2004

Customer Relationship Management David Bytsrzycki Chief Customer Relationship Management Officer 1. 5. 2004 Information Systems Pavel Zídek, temporarily appointed Chief Information Technology Officer

Quality Eduard Česnek, temporarily appointed Chief Quality Officer

Finance Christoph Glaser Chief Financial Officer 1. 12. 2004 Operations Jonas Hasselrot Chief Operating Officer 1. 5. 2003

Compliance Petr Karel Chief Compliance Officer 1. 7. 2002

Internal Audit Jana Pěchoučková Internal Audit Manager 22. 11. 2004 Third Party Products Division Not appointed

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James Desmond O’Shea

graduated from the Irish University College in Cork in 1977 and received his doctorate there. After his studies, he began working at Arthur Andersen & Co and in 2000, he qualified as an authorized accountant.

In 1981, he began working with Ulster Investment Bank Limited, a subsidiary of Natwest Bank. He held various positions in corporate banking, temporary financing and in international structural financing. He was appointed Director in 1988. In 1991, he joined Cambridge Finance and in 1992, he moved to Woodchester Investments where he held several positions in risk management. The company became part of GE Consumer Finance in 1998 and Des O’Shea was appointed as Risk Management Director for GECF Europe. In 2001, he moved to his present position as growth and business development manager in GECF Europe. He was appointed as a member of the Supervisory Board of GE Money Bank, a.s. in 2003 and became the Chairman of the Board one year later.

Pavel Zídek

graduated from ČVUT in Prague and worked for several years with various companies as information technology manager. In 1991, he joined Agrobanka, where he held various positions in the IT Department. Following the bank’s acquisition by GE, he became Senior IT Manager and later a member of the Supervisory Board, elected by the Bank’s employees (in 2001 and also in 2005).

Susan Elizabeth Crichton

studied LCB (Language and Culture for Business Program) at Birmingham University. She started her carrier in 1979 with the Forward Trust Group, where she worked for the legal department until 1987. In 1987, she was appointed to the position of European Legal Counsel at Avco Trust Ltd. She joined GE Consumer Finance in the United Kingdom in 1999; her first role was Senior Legal Advisor and since 2001, she has been the General Counsel for the entire GE Consumer Finance Europe. In 2004, she became a member of the Supervisory Board of GE Money Bank, a.s.

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Gerard Ryan

graduated from university in Ireland. After his studies, he began working with an Irish consultancy firm. He gained experience while working for several international companies in Ireland and in Great Britain, where he held various positions, mostly focusing on finance. From 1992, he worked with Woodchester Credit Lyonnais Plc, acquired in 1998 by GE. Within the GE Group, he has worked as Finance Director and Business Development Manager. He joined GE Money Bank, a.s. in 2002 as its Chief General Officer and Chairman of the Board of Directors.

Christoph Glaser

joined GE in 1997 on a European Management Development Program. From 1999, he was Executive Audit Manager at GE Corporate Audit ultimately specializing in businesses within the financial division of GE Consumer Finance. Since December 2004, he has been the Financial Director of GE Money Bank, a.s. and since 2005 he has also been a member of the Board of Directors.

Pavel Vyhnálek

graduated from the Mendel University in Brno. From 1992, he worked for Československá obchodní banka. Among other positions, he worked as a credit officer responsible for large corporate companies, a branch director, and mortgage banking director; he was involved in the privatization of ČSOB and in the

integration of IPB into ČSOB. Ultimately he was responsible for risk solutions in retail loans and mortgage loans across the whole ČSOB group in the CR and the SR. He was engaged in acquiring the mortgage license for ČSOB in the SR and he was the Chairman of the ČMHB Supervisory Board. In 2002, he joined GE Money Bank, a.s. as its Chief Risk Officer

Jonas Hasselrot

previously worked as a manager in the American Express Travel Centre in Stockholm. He managed more than 100 travel representa-tives and was responsible for the economic results of the Centre which has a 40% market share in Scandinavia. Later, he worked as Customer Service Director of the company for Benelux and for Scandinavia where he was responsible for a number of processes in the areas of customer

Jan Rollo

graduated from ČVUT in Prague. From 1989, he worked as a specialist in the IT Department at Swissair in Switzerland. He was

subsequently project manager of the PHARE Program at the European Union Delegation in Prague. He has worked in the banking industry since 1994, first with Bank Austria where he was responsible for relations with key customers, marketing and direct banking, and then Citibank, where he managed the product management department; he was involved in managing the SME section. He joined GE Money Bank, a.s. as Director of Commercial Sales and since 2000, he has been the Chief Commercial Banking Officer and member of the senior management of GE Money Bank, a.s.

Petr Karel

graduated from the Faculty of Law at Charles University in Prague and from the University of Economics in Prague where he obtained his PhD. From 1995, he worked for a consortium of international consultancy companies involved in consultancy for the Czech Government. From 1999, he worked for GE Money Bank, a.s. as a lawyer. He then worked for two years at Komerční banka as a regional manager where he was responsible for special deals. In 2002, he accepted an offer from GE Money Bank, a.s. and became its Chief Compliance Officer.

Jana Pěchoučková

graduated from the Faculty of Economics and Administration at the University of Pardubice. After graduation, she worked for Optaglio from 2000 until 2001 when she

joined GE Money Bank, a.s. as an internal auditor. In December 2004, she was appointed to the position of Manager of Internal Audit at GE Money Bank, a.s.

Tomáš Černý

graduated from the Law Faculty of Charles University and attended many special programs in Great Britain. Before joining GE Money Bank, a.s., Tomáš worked for five years in the Prague office of Weil Gotshal & Manges, a leading international law firm, focusing mainly on commercial law, banking, mergers and acquisitions. Before his work for Weil Gotshal & Manges Tomáš spent 2 years with Deloitte & Touche and also worked for the international law office of Clifford

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Radomil Štumpa

graduated from the Faculty of Law at Masaryk University in Brno. Over the course of ten years of legal practice, he gained experience at the Brno Court, the prosecutor’s office in Prague and in 1994 he became a member of the Czech Bar Association. As an attorney he worked for the international legal office of McKenna & Co and of Allen & Overy based in London. In 1997, he joined Citibank as Vice President and Chief Legal Counsel and was responsible for all legal matters relating to Citicorp in the Czech Republic. After the acquisition of Agrobanka, he joined the Bank in 1998 as Chief Legal Counsel of GE Capital Czech and Slovak Republics, and at the same time was an official representative of the GE shareholders. In 2000, he became a member of the senior management of GE Money Auto, a.s. and became its Chief Executive Officer and Chairman of the Board. Since 1 November 2003, he has been in charge of the commercial banking division of GE Money Bank, a.s.

David Bystrzycki

studied at the Faculty of Mathematics at Charles University. Between 1997 and 2000, he held various positions in the marketing department of Philip Morris, a.s. – his last role there was manager of the market research department. Prior to that, he worked for the market research agencies AC Nielsen and AISA. He joined GE Money Bank, a.s. four years ago. In 2001, he became manager of the market research team and from 2002 he was manager of the direct marketing department. He was responsible for cross–selling of products and for telemarketing. Since 1 May 2004, he has been in charge of the customer relations management department, which includes both direct marketing and telesales.

Erich Čomor

graduated from the University of Economics in Prague in 1993. At the end of the nineties he received his MBA from the J. L. Kellogg School of Management in the USA. Erich started his professional career with KPMG Consulting, where he worked from 1992 until 1993. He then moved to Procter & Gamble, where he was brand manager until 1996. Before joining GE Money Bank, a.s., Erich spent seven years with McKinsey & Co as an engagement manager. There he was involved in consulting in the area of introducing and selling the bank’s products during which time he acquired a deep knowledge of both the Czech and European banking markets. Since 2004, he has been Manager of marketing at GE Money Bank, a.s.

Niamh Hegarty

graduated from the University College Dublin; she studied foreign languages and in 1989, she received her bachelor's degree. In 1995 she received the title of Master of Business Administration at the Trinity College in Dublin. Before joining GE, she had held various positions in Dunnes Stores, Ann O'Brien Personnel Consultants and in Quaestus Management Consultants in her native Ireland, predominantly in Marketing and HR. In 1996, Niamh joined GE Plastics and progressed through various positions in the HR team. In 2004, she was appointed HR Manager in GE Advanced Materials – Americas and in July 2005 was appointed Chief Human Resource Officer of GE Money Bank, a.s.

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Organizational structure of the Bank

Supervisory Board

D. O’Shea, S. Crichton, P. Zídek

Board of Directors

G. Ryan, J. Rollo Ch. Glaser, M. Červenka

Chief Executive

Officer’s Office

Chief Executive Officer

G. Ryan

Retail Banking Division

Chief Retail Banking Officer J. Rollo

Commercial Banking Division

Chief Commercial Banking Officer R. Štumpa

Internal Audit Department

J. Pěchoučková Internal Audit Manager

Risk Division

Chief Risk Officer P. Vyhnálek

Legal Division

Chief Legal Counsel T. Černý

Finance Division

Chief Financial Officer Ch. Glaser

Operations Division

Chief Operations Officer J. Hasselrot

Compliance Division

Chief Compliance Officer P. Karel

Marketing & Product Development Division

Chief Marketing & Product Development Officer E. Čomor

Human Resources Division

Chief Human Resources Officer N. Hegarty

Customer Relationship Management Division

Chief Customer Relationship Management Officer D. Bystrzycki

Quality Division

Chief Quality Officer E. Česnek*

Third Party Products Division

Information Technology Division

Chief Information Technology Officer P. Zídek*

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Board of Directors’

Report

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BOARD OF DIRECTORS’ REPORT

The success of our strategy and business operations in 2005 can be seen from the economic results of the Bank, which has recorded a significant increase in demand for its credit products– both consumer loans and loans for small to medium-size enterprises. This is evidenced by the year-on-year increase in provided loans of 28.6%. In 2005, the volume of loans provided to clients was CZK 47,9 billion, while as at 31 December, 2004 it was CZK 37.2 billion. This trend was positively reflected in the interest margin. The portfolio quality remains high.

Thanks to the continued growth in loans provided, the net profitof GE Money Bank, a.s. grew 19.2% year-on-year to CZK 2.672 billion as at 31 December 2005. At the end of 2004 the bank had achieved a net profit of CZK 2.242 billion, which was reinvested as in previous years. The net profit per employeegrew to CZK 1.318 million as at 31 December 2005 compared with CZK 1,091 million at the end of 2004 – an increase of 20.8% year-on-year.

Despite the continuing credit expansion, GE Money Bank, a.s. has retained a high rate of capital adequacy– 23.41% at the end of last year, making GE Money Bank, a.s. one of the most stable financial institutions in the Czech market.

GE Money Bank, a.s. invested significantly in 2005 into the re-branding from GE Capital Bank, a.s. to GE Money Bank, a.s. and also opened 9 new points of sale and 28 new ATMs. Productivity increased as a result of the achieved growth and the opening of the new points of sale and the number of employees therefore decreased from 2 056 at the end of 2004 to 2 028 at the end of 2005.

GE Money Bank, a.s. had 806,708 clientsas at 31 December 2005 (year-on-year growth of 7.8%), in respect of which it maintained

948,306 deposit accounts(+2.6%). Total deposits received from clients increased by 4.3% in a very stable and unchanged market, while GE Money Bank, a.s. maintained deposits of CZK 47.40 billion as at 31 December 2005 compared with CZK 45.42 billion as at 31 December 2004.

GE Money Bank’s total assetswere CZK 64,163 billion as at 31 December 2005, representing year-on-year growth of 7.3%.

Return on Assets(ROA) reached a value of 4.30% at the end of 2005 compared with 3.76% at the end of 2004, representing an increase of 14.4%. The Return on Equity(ROE) was 21.13% as at 31 December 2005, which was 2% less than in 2004 – 21.56%.

The Board of Directors of GE Money Bank, a.s. is satisfied with the Bank’s results for 2005 and would like to thank all of its customers for placing their trust in the Bank and using its services.

Gerard Ryan,

Chairman of the Board of Directors

Christoph Glaser,

Member of the Board of Directors

Miroslav Červenka,

Jan Rollo,

Board of Directors’ Report on Operations and Assets

The business strategy of GE Money Bank, a.s. in 2005 was based on providing

financial services to individuals and small to medium-size enterprises. A portfolio of

modern and top-quality products offered at 201 points of sale throughout the Czech

Republic and 390 ATMs is aimed at satisfying our customers’ needs.

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Economic results of GE Money Bank, a.s.

(in thousands of CZK, according to Czech accounting standards)

BOARD OF DIRECTORS’ REPORT

Year-on-year change

Net income

(CZK thousands)

Client deposits

(CZK thousands)

Loans to clients

(CZK thousands)

Capital

(CZK thousands)

Total Assets

(CZK thousands)

Net profit

per employee

(mil. CZK)

ROA

Capital

adequacy

Year-on-year change Year-on-year change Year-on-year change Year-on-year change Year-on-year change Year-on-year change

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Sophisticated Economic

Indices of the Bank

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SOPHISTICATED ECONOMIC INDICES OF THE BANK

Basic Economic Data of GE Money Bank, a.s.

(according to Czech accounting standards):

Total assets

(mil. CZK)

Net profit

(mil. CZK)

Client deposits

(mil. CZK)

Capital Adequacy

(%)

* The reduction compared to 2001 was due to a change in the accounting methodology imposed by CNB.

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SOPHISTICATED ECONOMIC INDICES OF THE

Number of

employees

Number of

points of sale

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Forecast for 2006

2006 will bring new challenges for us. The dynamic growth of our portfolio and the number of customers of GE Money in the Czech Republic and Slovakia will require increased capacity.

We started to build a new Customer Service Centre in Ostrava in 2005, which we expect to open in the first half of 2006. Our competitors are continuously launching new and better products, therefore, to retain our market position, we have to accelerate our development of new products while continuously improving our existing product range. Regulatory pressure on the banking sector is increasing and this also generates product structure changes. Financial literacy and responsible lending are increasingly topics of the day to assist customers in selecting the right product to cover their needs. Bank and non-bank credit bureaux are merging, which should positively affect credit portfolio quality and further accelerate and simplify the whole loan application process.

Our strategic pillars in 2006 will be the same as last year.

Growth.

In 2006, we will further enhance the synergies between the products and services offered by all GE Money businesses in the Czech Republic. In this way, our more than 1.7 million customers will receive just the right service most suitable for their needs, and when they need it most.

Consistent customer orientation.

Every customer is different. In 2006 we will pay strong attention to sales of our products and services, to ensure that it is easy to become a GE Money Bank customer, and to relations with our existing customers so that it is beneficial to remain our customer. We will focus on customers who are using any single product (for

excessive debt, and make sure that he/she fully understands the financial products he/she has decided to sign up for at the outset.

Innovation.

If we want to achieve long-term success in the market we must always be one step ahead our competitors. All our competitors are using similar IT platforms and to some extent similar products; however, a competitive advantage still exists in having the right employees in an organisation and I am delighted to say that I believe we are a leader in this field. Our teams use their creativity to create new added value products and services that reflect the needs of our customers. Therefore, we will provide maximum support in 2006 to innovation and new ideas and reflect them, as quickly as possible, in the development of new products. During 2005 GE Money Central and Eastern Europe region was created. I am convinced that this will further accelerate best practice sharing and new product development among the countries in the region.

People.

In 2006 we will do our best to find, attract, develop and retain the best people in the Czech employment market. We will do this by using all forms of best practice available to us from our worldwide organisation and by maintaining the very strong and positive reputation we have in the market place for being a great business to work for.

I am confident that we will further increase our market share in 2006 both in consumer loans, mortgages and loans to small and medium-size enterprises.

Forecast for 2006

The priority for 2005 was to re-brand GE Capital Bank, a.s. to GE Money Bank, a.s.

The change was part of the international strategy of GE Money (GE Consumer

Finance) to create a strong global brand for the whole organisation. This aim was

reflected in our strategy: while changing brand, continue to meet the financial

services requirements of our customers and, in so doing, retain existing satisfied

clients and gain new ones. We also maintained our impressive track record of

consistent growth in assets and profitability with a relentless focus on good

customer service, product and service innovation and development of our people.

This strategy has once again enabled us to exceed our targets for the year. With

this in mind, we will continue to apply this strategy in the year ahead.

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Auditor’s report to the

shareholders of Bank

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SUPERVISORY BOARD REPORT AND AUDITOR’S REPORT

The Supervisory Board has carried out its tasks in compliance with the legislation of the Czech Republic, the Articles of the Bank and the Rules of Procedure. The Board of Directors of GE Money Bank, a. s., provided all supporting documents and information necessary for audit activities.

The Supervisory Board has discussed the Bank’s operating results for 2005 as reported in the financial statements, including the enclosures audited by the auditor and has reached the conclusion presented to the General Meeting:

The Supervisory Board recommends that the General Meeting approves the financial statements for 2005.

James Desmond O’Shea,

Chairman of the Supervisory Board

Susan Elizabeth Crichton,

Supervisory Board member

Pavel Zídek,

Supervisory Board member elected by the employees

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Auditor’s report to the shareholders of GE Money Bank, a.s.

On the basis of our audit, on April 7, 2006 we issued an auditor’s report on the Bank’s statutory financial statements, which are included in this annual report, and our report was as follows:

“We have audited the accompanying financial statements of GE Money Bank, a.s. for the year ended 31 December 2005. These financial statements are the responsibility of the Bank’s management. Our responsibility is to express an opinion on these financial statements based on our audit.

We conducted our audit in accordance with the Act on Auditors and International Standards on Auditing and the relevant guidance of the Chamber of Auditors of the Czech Republic. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes

examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by the Bank’s management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.

In our opinion, the financial statements present, in all material respects, a true and fair view of the assets, liabilities, equity and financial position of GE Money Bank, a.s. as of 31 December 2005 and the results of its operations for the year then ended in accordance with the Act on Accounting and relevant legislation of the Czech Republic.”

We have reviewed other financial information in the annual report for consistency with the audited financial statements. In our opinion, the information is consistent in all material respects with the audited financial statements.

The management of the Bank is responsible for the completeness and accuracy of the report on relations between related parties. Our responsibility is to review the accuracy of the information included in the report. During our review nothing came to our attention that would cause us to believe that the information contained in the report is materially inaccurate.

Prague 21 April 2006

KPMG Česká republika Audit, s.r.o. Licence number 71

Ing. Vladimír Dvořáček Ing. František Dostálek

Partner Partner

SUPERVISORY BOARD REPORT AND AUDITOR’S REPORT

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CHARITY AND SPONZORING

Ge Money volunteers assist those in need

Charity efforts and support for nonprofit projects are an important part of GE

culture. Last year, GE Money Bank, a.s., GE Money Auto, a.s. and GE Money

Multiservis, a.s. provided assistance both in terms of financial donations and

through the voluntary work of their employees.

Financial assistance to the needy in GE communities

The benevolent activities of GE Money are appreciated by organizations that provide care for physically and socially deprived children and adults, children's homes, centers for substituted family care, elementary schools, educational centers and a number of projects aimed at regenerating green areas.

Financial support is provided to these organizations if they apply for a GE grant. An application for a GE grant is submitted by the organization in question to the GE Grant Committee through the organization's guarantor, in most cases a GE employee, who works near the organization that is applying for the grant (for instance the manager of a GE Money Bank, a.s. branch located in the same city as the organization's registered office. Such regional ties proved to be very useful last year. Last year alone, based on approved GE grants, 39 projects were implemented with a total value of more than CZK 1 million (see the enclosed table).

In June 2005, representatives of GE Money Bank, a.s. handed over a cheque in the amount of CZK 20 thousand to the Motýlek community center. The center is located in Prague's Černý Most area and it is operated by the Association for Assistance to Handicapped Children. The mission of the association is to provide multi-sided assistance to children with impaired health and to socially handicapped children. The purpose of this assistance is to enable handicapped children to grow up in an undisturbed family environment and to become integrated members of society.

As part of its benevolent activities, GE Money Bank, a.s. also assists educational and nonprofit organizations by donating renovated PCs and other IT equipment to them.

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Support to those in need in 2005

CZK

The Association for the Deaf and Hearing-Impaired in the ČR, Most 5 000.00

The associated SOS of children villages Prague- the Castle 8 000.00

DANETA, s.r.o.; a private special school for pupils with multiple disabilities in Hradec Králové 10 000.00

Friends of the House for Children in Chomutov 10 000.00

PROTEBE – non profit association in Prague 2 10 000.00

The club for people with cystic fibrosis in Prague 5 10 000.00

The Foundation of Charter 77, Prague 1 10 000.00

TYFLOCENTRUM Liberec o.p.s. Liberec 10 000.00

Garden – institute of social care in Kladno 10 000.00

Q KLUB; 747 67 Hrabyně 3 10 000.00

Athletic sport club ELNA, Počerady 20 000.00

Home for Children; Balkán Plumlov 20 000.00

Center of Education for the Mentally Handicapped, Přerov 20 000.00

Association for Help to Handicapped Children, Prague 9 20 000.00

Special School, Česká Lípa 20 000.00

HOSPICE MOVEMENT - VYSOČINA Nové Město na Moravě 20 000.00

EWSC LITA SPORT PRAHA, Praha 5 20 000.00

Diocesan charity, Brno 20 000.00

Home for Children, Ostrava-Slezská Ostrava 20 000.00

Nonprofit Association “Life without Barriers”, Nová Paka 20 000.00

VIA Association of the Deaf and Blind, Prague 5 20 000.00

The City of Prachatice 30 000.00

The Association of St. J. N. Neumann in Prachatice 30 000.00

ÚSVIT; an association helping mentally handicapped people in Havlíčkův Brod 15 000.00

SONS United Organization of the Blind and Purblind, Blansko 15 000.00

ENERGIE o.p.s.; Hornická 106; 435 13 Meziboří; CZ; 15 000.00

RAINBOW Zámeček, a nonprofit organization, Havířov-Šumbark 15 000.00

ÚAMK - RACING CLUB LIBEREC; Hanychovská 37; 460 10 Liberec; ČR; 15 000.00

Special schools: Pod parkem 2788; Ústí nad Labem; CZ; 15 000.00

INEX – Association of Voluntary Activities Prague 1 15 000.00

The Club of Parents and Friends of Children’s Center in Kladno 15 000.00

Association of Secondary School Clubs of the Czech Republic, Brno 15 000.00

The Club of Parents and Friends of the Children’s Center in Březejc Velké Meziříčí 15 000.00

Domestic Assistance and Care Servicse – Hewer, Prague 10 15 000.00

VOLTIŽ o.s. Olomouc-Chválkovice 24 000.00

Special school for pupils with speech impediments and SPC, Hořičky 28 000.00

Elementary school and kindergarten in Bernartice nad Odrou 29 000.00

GE ELFUN; Hybernská 18; 110 00 Praha 1 1 300 000.00

Czech Radio; department of radio fees, Prague 2; 29 750.00

Hamza’s professional sanatorium for children and adults in Košumberk Luže 57 120.00

GE ELFUN Praha 1 65 460.00

Czech Red Cross - assistance to South East Asia after floods 286 000.00

GE ELFUN Prague 1 1 394.70

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GE Elfun Volunteers

A key role in the charitable activities of GE Money in the Czech republic is played by Elfun, an organization which associates volunteers from among the employees and which provides assistance, through these employees, to various areas and com-munities around the world. An important part of Elfun's activities is volunteerism benefiting the communities in which GE is present. Approximately 53 500 volunteers have contributed more than 1 million hours of voluntary work as part of Elfun efforts across the world to support more than one thousand different projects. In the Czech Republic, the Elfun Organization was established as early as 2000 and today it assists dozens of projects in three main areas – education, assistance for children and handicapped people and protection of the living environment. In 2005, more than 500 GE volunteers contributed several thousand hours of voluntary work in the Czech Republic.

Among the long-term projects, in which GE Elfun participates in the Czech Republic, is Klokánek (“Little Kangaroo”)– a project run by the Fund of Endangered Children.

In the Czech Republic, Elfun also cooperates with the House of Children of Charlotta Masaryková in Zbraslav, for which GE Money employees organize regular collections of diapers, Easter and St. Nicholas presents, and excursions into the countryside.

Blood donorship is a regular activity of GE Money employees. Last year, there were three such events and more than 150 GE employees donated blood.

Assistance to Asia following the devastating floods

In 2005, GE took a full part in the efforts to assist the regions of South East Asia that were damaged by devastating floods. GE Money Bank transferred the income from fees to the Czech Red Cross Account amounting to CZK 43 thousand and the income from payment orders made by its customers to the accounts of five major charity organizations, which helped to address the devastating consequences of the disaster. The Czech Red Cross also received almost CZK 77 thousand from the bank’s employees and another CZK 243 thousand from GE Money Bank. In total, GE Money in the Czech Republic and in the Slovak Republic and its employees contributed an amount of CZK 363 thousand. Moreover, on a global scale, GE and its employees contributed more than 11 million dollars to assist the affected region.

GE Money employees themselves collected CZK 76 924 in a special account of GE Money Bank, a.s.. They also helped indirectly – by participating in the GE employees’ satisfaction survey which was held in February 2005 in all GE business across the world. For each employee of GE Money in the Czech Republic and in Slovakia, that completed the questionnaire, GE Money donated an amount of CZK 100 to the Czech Red Cross. As a total of 2437 GE Money employees in the Czech Republic and Slovakia completed the questionnaire, GE Money contributed a total of CZK 243 700.

Assistance to the High Tatra Mountains

A tornado, which swept the High Tatra Mountains on 19 November 2004, destroyed a large wooded area in the National Park and in its surroundings.

GE Money assisted with the restoration of the area in 2005. Besides the financial contribution amounting to SK 200 000, which GE Money donated in December 2004, its employees also helped personally, to ensure that the High Tatras would again be a paradise for tourists and lovers of the mountains. In May 2005, 97 employees helped with repairing the damage after the tornado and spent 2100 hours cleaning approximately 5 hectares of damaged woods above the cog railway in Starý Smokovec. In August 2005, almost 150 employees of GE Money from Bohemia and Slovakia focused on the area of Štrbské Pleso and spent two afternoons cleaning almost 8 hectares of damaged woodland.

More information about Elfun and the voluntary work and sponsorship of GE Money in the Czech Republic is available at www.gemoney.cz - see “Sponsoring and Charity”, or at www.elfun.org.

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Report on Relations

between Related Parties

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REPORT ON RELATIONS BETWEEN RELATED PARTIES

In accordance with Article 66a paragraph 9 of Act No. 513/1991 Coll.,

the Commercial Code, as later amended, this report has been produced on the

relations between GE Capital International Holdings Corporation (“the Controlling

Entity”), with its registered office at Corporation Trust, 1209 Orange Street,

Wilmington, Delaware, USA and GE Money Bank, a.s. (“the Controlled Entity”

or “the Bank”), with its registered office in Prague and between the Controlled

Entity and other entities controlled by the Controlling Entity for the reporting

period 1.1.2005 – 31. 12. 2005.

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Ge Structure

GE Investments, Inc.

MRA Systems, Inc.

Global Consumer Finance Limited GE Money Bank, a.s. GE Capital (Czech) Holdings, s.r.o. GE Money Auto, a.s.

GE Money Auto, a.s. (SR)

General Electric Company

Since 15 December, 2004, GE Money Multiservis, a.s. became shareholder of GE Money Auto, a.s. General Electric Capital

Services, Inc.

General Electric Capital Corporation GE Capital International Holdings Corporation GE Money Multiservis, a.s. GE Money Multiservis, k.s. (SR) 100 % 100 % 100 % 99.8 % 100 % 100 % 100 % 100 % 100 % 99 % 1 % 0.2 %

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Contracts with affiliated GE companies

GE Money Bank, a.s, GE Money Multiservis, a.s. Mandate Contract Hybernská 18, Prague 1, Post Code 110 00 Vyskočilova 1422/1a, Prague 4, Post Code 140 28

GE Money Bank, a.s, GE Money Multiservis, a.s. Contract on business co-operation Hybernská 18, Prague 1, Post Code 110 00 Vyskočilova 1422/1a, Prague 4, Post Code 140 28 No financial commitments GE Money Bank, a.s, GE Money Auto, a.s. Mandate Contract Hybernská 18, Prague 1, Post Code 110 00 Vyskočilova 1422/1a, Prague 4, Post Code 140 28

GE Money Bank, a.s, GE Money Multiservis, a.s. Mandate Contract Hybernská 18, Prague 1, Post Code 110 00 Dobrovičova 8, Bratislava, Post Code 811 09,

Slovak Republic

GE Money Bank, a.s, GE Money Auto, a.s. Mandate Contract Hybernská 18, Prague 1, Post Code 110 00 Dobrovičova 8, Bratislava, Post Code 811 09,

Slovak Republic

GE Money Bank, a.s, GE Money Multiservis, a.s. Contract on supplied services Vyskočilova 1422/1a, Prague 4, Post Code 140 28 Vyskočilova 1422/1a, Prague 4, Post Code 140 28

1. RELATED PARTIES

The above should be changed to say “On 15 December, 2004... became a shareholder…“

GE Money Bank, a.s. is part of GE Consumer Finance, a multinational corporation focusing on providing financial services particularly to small and medium sized clients. The Bank co-operates with other companies within the GE Group which jointly use its distribution network to provide their services under normal commercial conditions.

2. LIST OF OTHER CONTRACTS AND LEGAL ACTS

a) List of contracts

Paid contracts - commitments

The Bank has concluded the below specified contracts with GE Group companies with the resulting commitments arising from them. These are mandate contracts with companies with registered offices in the Czech and Slovak Republics according to which the Bank invoices a proportionate part of the costs.

The Bank cooperates with GE Money Multiservis, a.s (“Multiservis”) by making its distribution channels available to Multiservis clients. Clients of Multiservis who are OK card holders can withdraw cash at branches of the Bank. For this service Multiservis pays a fix fee for each transaction.

The Bank also cooperates with Multiservis in the area of credit card handling, distribution and transactions related to the GE Maestro Credit Card/Master Card. The Bank maintains the whole portfolio in its Vision Plus system. Multiservis pays a fixed fee to the Bank for each issued and monitored card and also for each transaction made using these cards. The cost of each card is reviewed once a year based on the actual costs incurred and the profit margin of the Bank.

The Bank has concluded contracts with GE Group companies covering deals made on the money market according to the Bank’s instructions and on the account of the Bank. Another type of contract with attaching commitments is a contract on use of the GE logo and trade mark. In addition, the Bank has concluded contracts on the provision of support by GE companies in Dublin and Stamford to its HQ departments and to the Bank’s

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Contracts with other companies of the GE Group

GE Money Bank, a.s, GE GmbH Vienna, Austria Contract on supplied services Vyskočilova 1422/1a, Post Code 140 28

GE Money Bank, a.s, GE Capital Corporation Contract on treasury services Vyskočilova 1422/1a, Post Code 140 28

GE Money Bank, a.s, GE Capital Corporation – Utilization of GE networks Vyskočilova 1422/1a, Post Code 140 28 Global Consumer Finance

GE International Incorporated

GE Money Bank, a.s, GE Capital Registry, Inc. Trade mark utilization Vyskočilova 1422/1a, Post Code 140 28

GE Money Bank, a.s, GE Corporate Computer Services Limited - Fees for mediation of services V+ Vyskočilova 1422/1a, Post Code 140 28 Europe Station, Kingswood

GE Money Bank, a.s. Global Consumer Finance Contract on support for departments of Vyskočilova 1422/1a, Post Code 140 28 Summer Street 1600, Stamford, U.S.A GECB HQs

GE Money Bank, a.s. Global Consumer Finance Contract on support for departments of Vyskočilova 1422/1a, Post Code 140 28 Summer Street 1600, Stamford, U.S.A GECB HQs - IT services

GE Money Bank, a.s. GE Capital Woodchester Ltd. Contract on support for departments of Vyskočilova 1422/1a, Post Code 140 28 Golden Lane, Dublin 8, Ireland GECB HQs

GE Money Bank, a.s. GE Capital Inernational Services Contract on SW support Vyskočilova 1422/1a, Post Code 140 28 GE Towers, Sector Road, Sector 53 Contract signed on May 12, 2004

Gurgaon 122002, India

GE Money Bank, a.s. GE Capital Inernational Services Contract on SW support Vyskočilova 1422/1a, Post Code 140 28 GE Towers, Sector Road, Sector 53 Contract signed on May 14, 2004

Gurgaon 122002, India

GE Money Bank, a.s. General Electric Company E-mail service Vyskočilova 1422/1a, Post Code 140 28 3135 Easton Turnpike, Fairfiled

Connecticut 06431, USA

GE Money Bank, a.s. GE Capital Global Financial Restructuring SW usage (licence fee) Vyskočilova 1422/1a, Post Code 140 28 201 High Ridge Road, Stamford CT 06927

GE Money Bank, a.s. GE Capital Woodchester Ltd. Contract on support for departments of Vyskočilova 1422/1a, Post Code 140 28 Golden Lane, Dublin 8, Ireland GECB HQs

GE Money Bank, a.s. GE International, Inc. Contract on supplied services Vyskočilova 1422/1a, Post Code 140 28 Shelton, Connecticut USA

GE Money Bank, a.s. General Electric Capital Corporation Global contract between GE and INDUS Vyskočilova 1422/1a, Post Code 140 28 a INDUS SOFTWARE PRIVATE LIMITED SW usage contract - INDUS

GE Money Bank, a.s. GE Corporate Company and Telindus Global contract between GE and Telindus Vyskočilova 1422/1a, Post Code 140 28

GE Money Bank, a.s. GE Consumer Finance and Global Global contract between

Vyskočilova 1422/1a, Post Code 140 28 eXchange Services, Inc. (Telindus) GE and Global eXchange services – contract about telecommunication and security transfer systems maintenance GE Money Bank, a.s. General Electric Company Global contract between GE Vyskočilova 1422/1a, Post Code 140 28 and Ford Motor Company and Ford Motor Company

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Sub-lease contracts - receivables

The Bank has concluded sub-lease contracts with GE Group companies which have their centre in the building of the BB Centre in Vyskočilova street. The Bank recharges the costs related to the rented premises in the BB Centre proportionally to the listed companies on a monthly basis.

The Bank has also concluded sub-lease contracts with Multiservis, which uses part of the premises of the Bank in the regional cities for to sell its products. It pays the Bank a rental fee including a proportion of the operating costs of the point of sale.

GE Money Bank, a.s, GE Money Multiservis, a.s. Sub-lease contract - in BB Centre, Prague 4, Hybernská 18, Prague 1, Post Code 110 00 Vyskočilova 1422/1a, Prague 4, Post Code 140 28 Vyskočilova 1422/1a

GE Money Bank, a.s, GE Money Auto, a.s. Sub-lease contract - in BB Centre, Prague 4, Hybernská 18, Prague 1, Post Code 110 00 Vyskočilova 1422/1a, Prague 4, Post Code 140 28 Vyskočilova 1422/1a

GE Money Bank, a.s, GE Capital (Czech) Holdings, s.r.o. Sub-lease contract - in BB Centre, Prague 4, Hybernská 18, Prague 1, Post Code 110 00 Vyskočilova 1422/1a, Prague 4, Post Code 140 28 Vyskočilova 1422/1a

GE Money Bank, a.s, Global Financial Restructuring Czech Sub-lease contract - in The Park No. 2294/2, Vyskočilova 1a/1422, Prague 4 Postal Code 140 28 V Parku 2294/2, Postal Code 148 00 Prague 4 Chodov

GE Money Bank, a.s, GE International, Inc. Sub-lease contract - in BB Centre, Prague 4, Hybernská 18, Prague 1, Post Code 110 00 Two Corporate Drive, Shelton, USA Vyskočilova 1422/1a

GE Money Bank, a.s, GE Medical Systems, SA – organizační složka Sub-lease contract - in BB Centre, Prague 4, Hybernská 18, Prague 1, Post Code 110 00 Vyskočilova 1a/1422, Prague 4, Postal Code 140 28 Vyskočilova 1422/1a

GE Money Bank, a.s, GE Medical Systems Česká Republika, s.r.oi. Sub-lease contract - in BB Centre, Prague 4, Hybernská 18, Prague 1, Post Code 110 00 Vyskočilova 1422/1a, Prague 4, Post Code 140 28 Vyskočilova 1422/1a

GE Money Bank, a.s, GE Money Auto, a.s. Sub-lease contract – Plzeň, Anglické nábřeží 1 Vyskočilova 1422/1a, Prague 4, Post Code 140 28 Vyskočilova 1422/1a, Prague 4, Post Code 140 28

GE Money Bank, a.s, GE Money Auto, a.s. Sub-lease contract – Olomouc, Opletalova 2 Hybernská 18, Prague 1, Post Code 110 00 Vyskočilova 1422/1a, Prague 4, Post Code 140 28

GE Money Bank, a.s, GE Money Auto, a.s. Sub-lease contract – Hradec Králové, Hybernská 18, Prague 1, Post Code 110 00 Vyskočilova 1422/1a, Prague 4, Post Code 140 28 Karla IV. 502

GE Money Bank, a.s, GE Money Auto, a.s. Sub-lease contract – Brno, Lidická 31 Hybernská 18, Prague 1, Post Code 110 00 Vyskočilova 1422/1a, Prague 4, Post Code 140 28

GE Money Bank, a.s, GE Lighting, s.r.o. Sub-lease contract – Brno, Lidická 31 Hybernská 18, Prague 1, Post Code 110 00 Purkyňova 45/2740, Brno, Post Code 612 00

GE Money Bank, a.s, GE International, Inc. Sub-lease contract - in The Park Building Vyskočilova 1422/1a, Prague 4, Post Code 140 28 Husova 5, Prague 1, Post Code 110 00 No. 2294/2, Prague 4-Chodov

GE Money Bank, a.s. GE Money Multiservis, a.s. Sub-lease contract - in The Park Building Vyskočilova 1a/1422, Prague 4, Postal Code 140 28 Vyskočilova 1a/1422, Prague 4, Postal Code 140 28 No. 2294/2, Prague 4-Chodov

GE Money Bank, a.s. GE Money Auto, a.s. Sub-lease contract - in The Park Building Vyskočilova 1a/1422, Prague 4, Postal Code 140 28 Vyskočilova 1a/1422, Prague 4, Postal Code 140 28 No. 2294/2, Prague 4-Chodov

GE Money Bank, a.s. GE Capital (Czech) Holdings, sr.o.. Sub-lease contract - in The Park Building Vyskočilova 1a/1422, Prague 4, Postal Code 140 28 Vyskočilova 1a/1422, Prague 4, Postal Code 140 28 No. 2294/2, Prague 4-Chodov

GE Money Bank, a.s. GE Money Auto, a.s. Sub-lease contract – Jaromeř, Vyskočiulova 1a/1422, Prague 4, Postal Code 140 28 Vyskočilova 1a/1422, Prague 4, Postal Code 140 28 Ve Sladovnách 37

GE Money Bank, a.s. GE Money Auto, a.s. Sub-lease contract – České Budějovice, Vyskočiulova 1a/1422, Prague 4, Postal Code 140 28 Vyskočilova 1a/1422, Prague 4, Postal Code 140 28 Jírovcova 1863/1

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GE Money Bank, a.s, GE Money Multiservis, a.s. Mandate Contract Hybernská 18, Prague 1, Post Code 110 00 Vyskočilova 1422/1a, Prague 4, Post Code 140 28

GE Money Bank, a.s, GE Money Auto, a.s. Mandate Contract Hybernská 18, Prague 1, Post Code 110 00 Vyskočilova 1422/1a, Prague 4, Post Code 140 28

GE Money Bank, a.s, GE Money Multiservis, k.s. Mandate Contract Hybernská 18, Prague 1, Post Code 110 00 Dobrovičova 8, Bratislava, Post Code 811 09, SR

GE Money Bank, a.s, GE Money Auto, a.s. Mandate Contract Hybernská 18, Prague 1, Post Code 110 00 Dobrovičova 8, Bratislava, Post Code 811 09, SR

GE Money Bank, a.s, GE Money Multiservis, a.s. Contract on co-operation – concluding Hybernská 18, Prague 1, Post Code 110 00 Vyskočilova 1422/1a, Prague 4, Post Code 140 28 revolving credit contracts on behalf of Multiservis, withdrawal through O.K. card GE Money Bank, a.s, Global Consumer Finance Ltd. Contract on supplied services for IT projects Hybernská 18, Prague 1, Summer Street 1600, Stamford, U.S.A. management

GE Money Bank, a.s, GE Money Multiservis, a.s. Contract on co-operation – concluding OK Vyskočilova 1422/1a, Prague 4, Post Code 140 28 Vyskočilova 1422/1a, Prague 4, Post Code 140 28 Karta agreements

GE Money Bank, a.s, GE Money Multiservis, a.s. Contract on co-operation – concluding loan Vyskočilova 1422/1a, Prague 4, Post Code 140 28 Vyskočilova 1422/1a, Prague 4, Post Code 140 28 agreements On behalf of Multiservis GE Money Bank, a.s, GE Money Multiservis, k.s. Contract on a movable lease Vyskočilova 1422/1a, Prague 4, Post Code 140 28 Bottova 7, Bratislava, Post Code 811 09, SR Terminated on April 7, 2005 GE Money Bank, a.s, GE Money Auto, a.s. Contract on a movable lease Vyskočilova 1422/1a, Prague 4, Post Code 140 28 Bottova 7, Bratislava, Post Code 811 09, SR Terminated on April 30, 2005 GE Money Bank, a.s, GE Money Auto, a.s. Contract on a movable lease Vyskočilova 1422/1a, Prague 4, Post Code 140 28 Bottova 7 8, Bratislava, Post Code 811 09, SR Terminated on December 31, 2005 GE Money Bank, a.s, GE Money Multiservis, a.s. Contract on a movable lease Vyskočilova 1422/1a, Prague 4, Post Code 140 28 Vyskočilova 1422/1a, Prague 4, Post Code 140 28 Terminated on February 28, 2005 GE Money Bank, a.s, GE Money Auto, a.s. Contract on a movable lease Vyskočilova 1422/1a, Prague 4, Post Code 140 28 Vyskočilova 1422/1a, Prague 4, Post Code 140 28

GE Money Bank, a.s, GE Money Multiservis, a.s. Contract on a movable lease Vyskočilova 1422/1a, Prague 4, Post Code 140 28 Vyskočilova 1422/1a, Prague 4, Post Code 140 28,

b) List of other legal acts

No legal acts have been concluded during the reporting period in favour of the Controlling Entity or entities controlled by the Controlling Entity outside the scope of legal acts normally performed by the Controlling Entity in exercising its rights as a shareholder of the Controlled Entity.

3. OTHER GOODS AND SERVICES PROVIDED AND

OFFSETS RECEIVED

During the reporting period, the Controlled Entity did not receive or provide, in favour or at the request of the Controlling Entity or entities controlled by the Controlling Entity, any goods or services or offsets in excess of those normally received from or provided to the Controlling Entity as a shareholder of the Controlled Entity.

Mandate contracts and other contractual receivables

The Bank also provided services in the non-retail area to GE companies in the Czech and Slovak Republics. The services were supplied under normal commercial conditions. The Bank has concluded a contract with Global Consumer Finance Ltd on

supplying IT (Information Technology) project management services. The Bank provides traditional banking services to affiliated companies under normal commercial conditions, for example the maintenance of accounts.

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4. GE Money Bank, a.s. RECEIVABLES FROM AND PAYABLES TO OTHER RELATED PARTIES

31. December, 2005

CZK M Receivables Payables

GE Money Multiservis, Czech Republic 850 472 27 697

GE Money Multiservis, Slovak Republic 56 7

GE Capital (Czech) Holdings, Czech Republic 36 37 230

GE International Zurich, Schwitzerland 41 –

GE International, Shelton BUC: M45000 25 877 763

GE International, Czech Republic 84 –

GE ELFUN – 970

GE Medical Systems S. A., Czech Republic 1 842 –

Czech Republic 24 –

GE Money Auto, Česká republika 183 325 6 073

GE Money Auto, Slovak Republic 259 –

GE Consumer Finance, Watford 3 –

GE Equipment Services CZ, Říčany u Prahy 1 –

Global Financial Restructuring Czech, Prague 4 4 –

GE Industrial Brno, CZ 14 –

Amersham Health (Cnetral East Europe), HaldelsGmbh, Prague 8 9 – GE Capital Woodcherster Limited Golden Lane, Ireland 3 032 –

GE Capital Europe Limited London, UK BUC: 20001X 46 –

GCF – Global Cards, London, UK 1 390 –

GE Client Business Services Fort Myers FL, USA 68 –

GE Capital Commerzial Finance International, Stamford, USA 449 – GE Capital Global Cons.Finance Stamford, USA BUC: EB7045 1 703 –

GE Capital, Gdaňsk, Poland 18 227

GE Corporate Audit Staff, Fairfield, USA 5 –

GE Consumer Finance UK Limited, Leeds, UK 66 –

GE Money Services, Gmbh, Eisenstadt, Austria 93 –

Ge Money Bank, Hannover, Germany 46 –

GE Card Services North America, Stamford, USA 125 –

GE Corporate Component, Philadelphia – 193

GE Capital – GCF, Sao Paulo, Brasil 733 –

GE Consumer Finance Brasil, Sao Paulo, Brasil 225 –

GE Real Estate Europe, Paris, France 9 –

GE Money Bank AB, Stockholm 168 –

General Electric Capital Bank SA, Barcelona, Spain 37 –

GE Capital Bank, Budapest, Hungary 155 –

GE Capital Asia Pacific, Hong Kong 22 –

GE Crotonville Training BUC: A01300 – 120

GE Nuovo Pignone Holding BUC: RS1011 – 80

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Financial Statements

Name of the Bank: GE Money Bank, a.s.

Registered office: Vyskočilova 1422/1a, Praha 4

Identification no: 25672720

Business: Bank

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FINANCIAL STATEMENTS

CZK 000 Note 2005 2004

1 Cash in hand and balances with central banks 2 313 214 3 068 392 2 State zero coupon bonds and other securities eligible

for refinancing with the CNB 15 490 148 4 078 227

of which: a) securities issued by government institutions 490 148 4 078 227

b) others 0 0

3 Receivables from banks and cooperative savings associations 13 11 186 700 13 253 702

of which: a) repayable on demand 56 821 57 944

b) other receivables 11 129 879 13 195 758

4 Receivables from customers - members of cooperative savings associations 14 47 896 504 37 238 532

of which: a) repayable on demand 477 409

b) other receivables 47 896 027 37 238 123

6 Shares, mutual fund certificates and other investments 16 39 027 16 105 7 Participation interests with substantial influence 17 240 240

of which: in banks 0 0

9 Intangible fixed assets 18 250 371 256 156

of which: a) establishment costs 0 0

b) goodwill 0 0

10 Tangible fixed assets 19 777 167 841 770

of which: land and buildings for operating activities 215 816 179 690

11 Other assets 20 1 106 428 913 848

13 Prepaid expenses and accrued income 103 368 114 699

Total assets 64 163 167 59 781 671

The notes set out on pages 50 to 68 form part of these financial statements.

ASSETS

(46)

CZK 000 Note 2005 2004

2 Due to customers - members of cooperative savings associations 21 47 400 258 45 428 245 of which: a) repayable on demand 33 829 769 30 847 966

b) other payables 13 570 489 14 580 279

4 Other liabilities 22 1 179 188 1 416 629

5 Deferred income and accrued expenses 113 24 366

6 Provisions 24 12 523 14 447

of which: a) provision for pensions and similar obligations 0 0

b) provision for taxes 0 0

c) other 12 523 14 447

8 Registered capital 23 510 000 510 000

of which: a) registered paid-up capital 510 000 510 000

b) own shares 0 0

9 Share premium 25 4 701 979 4 701 979

10 Reserve funds and other funds from profit 25 102 000 102 000 of which: a) statutory reserve funds and risk funds 102 000 102 000

b) other reserve funds 0 0

c) other funds from profit 0 0

13 Gains (losses) from revalution 26 403 0

of which: a) assets and liabilities 26 403 0

b) hedging derivatives 0 0

c) participation interests 0 0

14 Retained earnings (or accumulated losses) from previous years 25 7 584 005 5 341 830 15 Profit (loss) for the accounting period 25 2 672 698 2 242 175

Total liabilities 64 163 167 59 781 671

LIABILITIES

(47)

CZK 000 Note 2005 2004

Off-balance sheet assets

1 Commitments and guarantees granted 28 6 685 515 6 500 297

3 Receivables from spot transactions 12 290 51 619

4 Receivables from fixed term transactions 3 537 267 6 019 332

6 Receivables written-off 2 933 619 3 050 598

Off-balance sheet liabilities

1 Commitments and guarantees received 398 362 347 674

2 Collateral and pledges received 38 736 853 31 118 750

3 Payables from spot transactions 12 269 51 710

4 Payables from fixed term transactions 3 574 332 6 105 277 The notes set out on pages 50 to 68 form part of these financial statements.

(48)

CZK 000 Note 2005 2004

1 Interest income and similar income 4 4 657 295 4 293 912

of which: debt securities 4 23 054 219 916

2 Interest expenses and similar expenses 4 (208 260) (236 861)

of which: debt securities 0 0

3 Income from shares and participation interests: 5 173 156 496 of which: a) income from participation interests with substantial influence 0 0 b) income from participation interests with controlling influence 0 0 c) income from other shares and participation interests 5 173 156 496

4 Commission and fee income 6 2 561 005 2 312 167

5 Commission and fee expenses 6 (315 855) (288 329)

6 Gain or loss from financial operations 7 119 039 114 677

7 Other operating income 8 646 669 812 057

8 Other operating expenses 8 (32 213) (205 088)

9 Administrative expenses 9 (3 193 755) (2 954 459)

of which: a) employee expenses 9 (1 261 556) (1 226 646) of which : aa) social and health insurance 9 (328 559) (320 129) b) other administrative expenses 9 (1 932 199) (1 727 813) 11 Depreciation, creation and use of reserves (385 026) (388 949)

and adjustments to tangible and intangible FA

12 Release of adjustments and provisions for receivables 24 417 732 586 611 and guarantees, income from written-off receivables

13 Write-offs, creation and use of adjustments 24 (1 470 718) (1 584 708) and provisions for receivables and guarantees

19 Current year profit (loss) from ordinary activities before tax 2 796 086 2 617 526

23 Income tax 25 (123 388) (375 351)

24 Net profit (loss) for the accounting period 2 672 698 2 242 175