Informing decisions

BRE Bank has grown from the need of the young capital market in Poland at early stages of its development. From the very beginning it had an ambition to create innovative products, offer cutting edge business solutions and build partnering relations with its clients. Thus, it aimed to establish cooperation with prominent foreign banks, support export-oriented projects and meet market needs with regard to acquisition of foreign currencies.

In line with its “stand out or die” principle, the bank has many a time played a role of pioneer, setting new trends both in terms of customer service and product offering. It was the first privatised Polish bank to be included in the WIG20 index. It established a strategic partnership with Commerzbank, one of the largest and most important German banks. Thanks to its consistency in following through the adopted strategy, BRE Bank has managed to win and maintain the position of one of leading Polish financial institutions in terms of capital, range of activity, pace of development, variety of offered products and high advancement of banking technology.

Today, after over 20 years of operations, BRE Bank’s uniqueness lies in its technological advancement, innovative edge and approach to clients, based on professional advice and customised financial solutions. BRE Bank’s mission and ambition is to maintain the position of “the best financial institution for demanding clients.”
    
Client relationships
BRE Bank focuses on supporting modern and dynamic companies: international corporations, large enterprises and fast growing SME. It offers clients top service standards and a range of tailor-made products. With specialised financial services offered by the group’s strategic companies added to its portfolio, BRE Bank has created a very modern, comprehensive and flexible offering in the area of corporate, investment, retail and asset management banking, supplemented with factoring, leasing, advisory and brokerage services, as well as insurance and investment products. The implemented strategy allows the bank to cater for all financial needs, even the most non-standard ones. BRE Bank is an expert in the area of specialised investment banking transactions, executed at the client’s order, and a valued partner for companies which BRE Bank assists in all export and foreign trade transactions. The bank also specialises in advice and financing of projects from the European Union funds.

The bank has also prepared a wide range of products and services for retail clients. It was a pioneer with regard to services offered to financially or socially high-profile clients with sophisticated product and service needs. In 1995, as one of the first banks on the Polish market, it offered private banking services to clients. Today it is the segment leader and offers professional and comprehensive BRE Private Banking & Wealth Management services.

BRE Bank caters for affluent clients and entrepreneurs, representatives of Poland’s developing middle class, who expect products and services fit for their needs, via MultiBank – a friendly world of finance. Active clients who value convenience and eagerly take advantage of modern technologies and standard banking products have been offered mBank, an open financial platform where clients are offered only the best products and services according to the “Top Quality at the Best Price” principle – namely maximum benefit and convenience.

New technologies
For years BRE Bank has been associated with innovations and cutting edge technologies. In 20 years of its operations the Bank has many a time surprised the market with ground breaking solutions in the area of technology, products or non-standard financial solutions, setting the tone for Polish banking. It continually improves its offering while regularly launching front-line IT solutions. In 2000, it launched mBank, the first internet bank in Poland. Now the retial branch of BRE is servicing over 3m clients. Four years later, it implemented iBRE system – one of the most innovative online banking systems for companies, offering full transaction security and top level banking services and technologies.

Growth strategy for 2010-2012
BRE Bank seeks to achieve revenue growth at an average annual rate of above 10 percent and increase the pre-tax return on equity to about 20 percent by implementing its strategy for 2010–2012. An important element of the strategy will be a share capital increase with the targeted proceeds of PLN 2 billion, which is expected to improve core Tier 1 ratio.

BRE Bank’s new strategy focuses on profitable growth in two key segments: retail and corporate. “We have a strong position both among affluent retail banking customers and among business clients.” said BRE Bank CEO Mariusz Grendowicz. “We want to exploit this potential during the anticipated improvement in the economy. In addition, we wish to provide the necessary flexibility in anticipation of the expected changes in the regulatory environment.”

In retail banking BRE Bank seeks to attract new customers and increase the average number of products used by each customer. “Individual accounts are one of the strengths that allow us to steadily gain new customers among the most active users of banking products,” Grendowicz explained. “Now we want to offer them new products.” Non-mortgage lending, including car loans, is a product group that BRE Bank’s Management Board thinks has the potential to increase the Bank’s revenue in the retail segment. BRE Bank also seeks to increase its non-interest revenues from such services as payment cards, brokerage commissions and bank transfers.

BRE Bank also intends to attract new customers in the corporate segment. “Here we want to focus primarily on winning SMEs as customers,” CEO Mariusz Grendowicz explained. “We also plan to strengthen our presence in the capital markets, for example by improving our position as the leading organizer and dealer on the market for non-Treasury debt securities.”

The planned revenue growth is expected to go hand-in-hand with stricter cost controls, and BRE Bank seeks to reduce its cost/income ratio to ca. 50 percent by the end of 2012. The share capital increase should also allow the Tier 1 ratio to be maintained in the range of 8–10 percent.