Income statement
BALANCE SHEET
STATEMENT OF CHANGES IN EQUITY
CASH FLOW STATEMENT
NOTES TO THE INTERIM CONDENSED FINANCIAL STATEMENTS
1.	Basis of Preparation
2.	Accounting policies
3.	First time adoption of International Financial Reporting Standards
4.	Interest income
5.	Interest expense
6.	Fee and commission income
7.	Fee and commission expense
8.	Result on financial instruments valued at fair value
9.	Result on investment securities
10.	Other operating income and expenses
11.	Impairment losses on loans and advances
12.	Overhead costs
13.	Due from banks
14.	Financial assets held for trading
15.	Derivative financial instruments
16.	Other financial instruments measured at fair value through profit and loss
17.	Loans and advances to customers
18.	Investment securities
19.	Investments in subsidiaries
20.	Investments in joint ventures entities
21.	Investments in associates entities
22.	Intangible assets
23.	Tangible fixed assets
24.	Amounts due  to other banks
25.	Other financial liabilities at fair value through profit or loss
26.	Amounts due to customers
27.	Debt securities in issue
28.	Provisions
29.	Equity
30.	Contingent liabilities and insurance contracts
31.	Issuances, repurchases, and repayments of debt securities
32.	Dividends paid
33.	Litigation
34.	Transactions with related entities
35.	Events after the balance sheet date

INTERIM Condensed Financial Statements of the Bank Pekao S.A.

The financial data included in this financial statements are given in thousands PLN (PLN ths.) 
Income statement 
for the 1st Half of 2005 and the 1st Half 2004 (*)
	Note	 for period from 01.01.2005                to 30.06.2005	 for period 
from
01.01.2004                to 30.06.2004 	
		‘000 PLN	‘000 PLN	
I. Interest income	4	1 927 146	1 782 328	
II. Interest expense	5	(847 675)	(721 319)	
III. Net interest income		1 079 471	1 061 009	
IV. Fee and commission income	6	715 930	758 951	
V. Fee and commission expense	7	(69 206)	(71 622)	
VI. Net fee and commission income		646 724	687 329	
VII. Dividend income		96 573	41 081	
VIII. Result on financial instruments at fair value	8	51 863	3 345	
IX. Result on  investment securities	9	33 818	4 120	
X. Foreign exchange result		146 566	149 281	
XI. Other operating income	10	50 649	60 824	
XII. Other operating expenses	10	(38 376)	(55 474)	
XIII. Net other operating income		12 273	5 350	
XIV. Impairment losses on loans and advances	11	(126 620)	(167 483)	
XV. Overhead costs	12	(1 068 286)	(1 066 536)	
XVI. Operating profit		872 382	717 496	
XVII. Profit before income tax		872 382	717 496	
XVIII. Income tax expense		(141 444)	(77 309)	
XIX. Net profit (loss)		730 938	640 187	
(*) Income Statement for the 1st Half of 2005 and the comparative data for the 1st Half of 2004 were prepared applying the accounting policies consistently in both the periods. The two areas of IAS 39 are exemptions  from this rule: estimation of impairment of financial assets and valuation of loans and advances at amortized cost using the effective interest method.

BALANCE SHEET 
as at 30 June 2005, 31 December 2004 and the 30 June 2004 (*)
 	Note	stan na 	stan na 	stan na	
		30.06.2005         	31.12.2004          	30.06.2004          	
Assets		 	 	 	
I. Cash and amounts due from Central Bank		3 197 714	3 935 112	3 048 591	
II. Debt securities eligible for rediscounting at the Central Bank		8 851	8 768	7 134	
III. Amounts due from banks	13	7 289 940	5 956 598	8 518 093	
IV. Financial assets held for trading 	14	2 220 737	2 939 203	916 810	
V. Derivative financial instruments	15	631 709	503 481	355 887	
VI. Other financial instruments at fair value through profit or loss	16	1 736 328	1 336 721	1 608 305	
VII. Loans and advances to customers	17	27 246 722	26 533 709	26 358 057	
VIII. Investment securities	18	14 476 084	15 028 457	16 988 841	
    1. Available for sale		11 692 780	10 098 484	11 536 859	
    2. Held to maturity		2 783 304	4 929 973	5 451 982	
IX. Shares in subsidiares	19	544 801	544 801	517 762	
X. Shares in joint-ventures	20	-	-	2 089	
XI. Shares in associates	21	47 060	28 690	42 033	
XII. Intangible assets	22	618 182	617 982	597 434	
XIII. Tangible fixed assets	23	1 469 610	1 520 209	1 560 950	
XIV.  Investment property		45 863	48 556	52 580	
XV. Income taxes		145 259	66 966	89 890	
    1. Current tax assets		-	11 009	-	
    2. Deferred income tax assets		145 259	55 957	89 890	
XVI. Other assets		471 635	463 194	955 167	
Total  assets		60 150 495	59 532 447	61 619 623	
Liabilities			 	 	
I. Amounts due to the Central Bank		2 054 190	2 151 743	2 237 868	
II. Amounts due to other banks	24	2 081 439	1 350 796	2 428 319	
III. Financial liabilities held for trading	25	85 860	438 219	151 530	
IV. Derivative financial instruments 	15	736 257	623 683	353 627	
V. Other financial liabilities at fair value through profit or loss		-	-	-	
VI. Amounts due to customers	26	46 029 168	45 860 364	46 631 760	
VII. Debt securities in issue	27	17	23 205	527 311	
VIII. Other liabilities		1 348 746	844 266	1 873 657	
IX. Current income tax liabilities		114 081	-	21 559	
X. Provisions for deferred income tax		-	-	-	
XI. Provisions	28	102 500	344 075	334 112	
Total  liabilities		52 552 258	51 636 351	54 559 743	
 		 	 	 	
Equity	29	 	 	 	
XII. Share capital		166 482	166 482	166 122	
XIII. Retained earnings		67 363	365 911	365 912	
XIV. Other capital and reserves		7 364 392	7 363 703	6 527 846	
T o t a l    e q u i t y		7 598 237	7 896 096	7 059 880	
T o t a l   e q u i t y   a n d   l i a b i l i t i e s		60 150 495	59 532 447	61 619 623	
(*) Balance sheet  as of 30th June  and the comparative data of prior periods were prepared applying the accounting policies consistently in all the periods. The two areas of IAS 39 are exemptions  from this rule: estimation of impairment of financial assets and valuation of loans and advances at amortized cost using the effective interest method. 

STATEMENT OF CHANGES IN EQUITY 
	Share capital	Retained earnings	Other equity	Total	
			Reserve capital	Revaluation reserve	General banking risk fund	Other reserves	Convertible Bond-equity component	Net profit		
	‘000 PLN	‘000 PLN	‘000 PLN	‘000 PLN	‘000 PLN	‘000 PLN	‘000 PLN	‘000 PLN	‘000 PLN	
Previous GAAP balance at 1 January 2005	166 482	101 256	1 550 341	161 614	1 067 850	3 513 081	-	1 343 001	7 903 625	
Previous results from loans provisions adjustments	-	(222 030)	-	-	-	-	-	-	(222 030)	
Subsidiary shares valuation	-	(25 060)	-	8 761	-	-	-	(97 859)	(114 158)	
Employee share option proceeds from shares issued 	-	(795)	-	-	-	-	5 595	(4 800)	-	
Total recognized sell-buy-back and buy-sell-back	-	188	-	-	-	-	-	(689)	(501)	
Perpetual usufruct rights	-	-	-	-	-	-	-	199	199	
Fixed assets revaluation	-	179 425	-	(179 425)	-	-	-	-	-	
Change in fixed assets values 	-	148 888	-	-	-	-	-	(4 747)	144 141	
Accrued fees adjustment	-	-	-	-	-	-	-	(15 819)	(15 819)	
Adjustment of deffered tax	-	(8 420)	-	(1 026)	-	-	-	17 626	8 180	
Adjustment related to IFRS/IAS introduction	-	72 196	-	(171 690)	-	-	5 595	(106 089)	(199 988)	
IFRSs balance at 1 January 2005	166 482	173 452	1 550 341	(10 076)	1 067 850	3 513 081	5 595	1 236 912	7 703 637	
Shares issued	-	-	-	-	-	-	-	-	-	
Transfer to statutory reserve	-	-	-	-	-	277 518	-	(277 518)	-	
Dividend to shareholders	-	-	-	-	-	-	-	(1 065 483)	(1 065 483)	
Retained earnings transfer	-	(106 089)	-	-	-	-	-	106 089	-	
Effects of transition to IFRSs	-	-	-	-	-	-	2 831	-	2 831	
Valuation of securities available for sale (net)	-	-	-	226 410	-	-	-	-	226 410	
Currency translation differences from foreign subsidiary	-	-	-	(41)	-	-	-	-	(41)	
Other	-	-	-	(55)	-	-	-	-	(55)	
Net profit	-	-	-	-	-	-	-	730 938	730 938	
IFRSs balance at 30 June 2005	166 482	67 363	1 550 341	216 238	1 067 850	3 790 599	8 426	730 938	7 598 237	

	Share capital	Retained earnings	Other equity	Total	
			Reserve capital	Revaluation reserve	General banking risk fund	Other reserves	Convertible Bond-equity component	Net profit		
	‘000 PLN	‘000 PLN	‘000 PLN	‘000 PLN	‘000 PLN	‘000 PLN	‘000 PLN	‘000 PLN	‘000 PLN	
Previous GAAP balance at 1 January 2004	166 122	101 256	1 527 204	32 988	895 583	3 513 059	-	919 815	7 156 027	
Subsidiary shares valuation	-	32 836	-	10 386	-	-	-	(57 896)	(14 674)	
Employee share option proceeds from shares issued 	-	-	-	-	-	-	795	(795)	-	
Total recognized sell-buy-back and buy-sell-back	-	-	-	-	-	-	-	188	188	
Fixed assets revaluation	-	179 425	-	(179 425)	-	-	-	-	-	
Change in fixed assets values 	-	148 888	-	-	-	-	-	-	148 888	
Adjustment of deffered tax	-	(37 990)	-	(1 727)	-	-	-	-	(39 717)	
Adjustment related to IFRS/IAS introduction	-	323 159	-	(170 766)	-	-	795	(58 503)	94 685	
IFRSs balance at 1 January 2004	166 122	424 415	1 527 204	(137 778)	895 583	3 513 059	795	861 312	7 250 712	
Shares issued	360	-	23 137	-	-	-	-	-	23 497	
Transfer to statutory reserve	-	-	-	-	172 267	-	-	(172 267)	-	
Dividend to shareholders	-	-	-	-	-	-	-	(747 548)	(747 548)	
Retained earnings transfer	-	(58 503)	-	-	-	-	-	58 503	-	
Effects of transition to IFRSs	-	-	-	-	-	-	4 800	-	4 800	
Valuation of securities available for sale (net)	-	-	-	127 253	-	-	-	-	127 253	
Currency translation differences from foreign subsidiary	-	-	-	449	-	-	-	-	449	
Rother	-	-	-	-	-	21	-	-	21	
Net profit	-	-	-	-	-	-	-	1 236 912	1 236 912	
IFRSs balance at 31 December 2004	166 482	365 912	1 550 341	(10 076)	1 067 850	3 513 080	5 595	1 236 912	7 896 096	

	Share capital	Retained earnings	Other equity	Total	
			Reserve capital	Revaluation reserve	General banking risk fund	Other reserves	Convertible Bond-equity component	Net profit		
	‘000 PLN	‘000 PLN	‘000 PLN	‘000 PLN	‘000 PLN	‘000 PLN	‘000 PLN	‘000 PLN	‘000 PLN	
Previous GAAP balance at 1 January 2004	166 122	101 256	1 527 204	32 988	895 583	3 513 059	-	919 815	7 156 027	
Subsidiary shares valuation	-	32 836	-	10 386	-	-	-	(57 896)	(14 674)	
Employee share option proceeds from shares issued 	-	-	-	-	-	-	795	(795)	-	
Total recognized sell-buy-back and buy-sell-back	-	-	-	-	-	-	-	188	188	
Fixed assets revaluation	-	179 425	-	(179 425)	-	-	-	-	-	
Change in fixed assets values 	-	148 888	-	-	-	-	-	-	148 888	
Adjustment of deffered tax	-	(37 990)	-	(1 727)	-	-	-	-	(39 717)	
Adjustment related to IFRS/IAS introduction	-	323 159	-	(170 766)	-	-	795	(58 503)	94 685	
IFRSs balance at 1 January 2004	166 122	424 415	1 527 204	(137 778)	895 583	3 513 059	795	861 312	7 250 712	
Shares issued	-	-	-	-	-	-	-	-	-	
Transfer to statutory reserve	-	-	-	-	172 267	-	-	(172 267)	-	
Dividend to shareholders	-	-	-	-	-	-	-	(747 548)	(747 548)	
Retained earnings transfer	-	(58 503)	-	-	-	-	-	58 503	-	
Effects of transition to IFRSs	-	-	-	-	-	-	1 969	-	1 969	
Valuation of securities available for sale (net)	-	-	-	(85 237)	-	-	-	-	(85 237)	
Currency translation differences from foreign subsidiary	-	-	-	(226)	-	-	-	-	(226)	
Rother	-	-	-	-	-	23	-	-	23	
Net profit	-	-	-	-	-	-	-	640 187	640 187	
IFRSs balance at 30 June 2004	166 122	365 912	1 527 204	(223 241)	1 067 850	3 513 082	2 764	640 187	7 059 880	

CASH FLOW STATEMENT
	from 1 Jan 2005                   to 30 June 2005	from 1 Jan 2004                   to 30 June 2004	
A. Cash flow from operating activities - indirect method			
 I. Net profit (loss)	730 938	640 187	
Adjustments:	(492 461)	(1 366 265)	
Depreciation	150 640	148 117	
Foreign exchange differences	(206 733)	10 879	
(Profit) loss on investing activities	(32 800)	(6 863)	
Impairment	6 630	(25 593)	
Interest and dividend	(559 265)	(463 785)	
Change in loans and advances to banks	59 930	(545 189)	
Change in financial assets as held for trading and other financial instruments at fair value through profit or loss	318 859	94 583	
Change in derivative financial instruments	(128 228)	(100 594)	
Change in loans and advances to customers	(1 183 579)	(1 042 646)	
Change in investment securities available for sale	(53 223)	13 156	
Change in deferred income tax assets	(48 723)	(62 868)	
Change in other assets	(21 410)	(113 484)	
Change in amounts due to banks	633 090	457 102	
Change in liabilities as held for trading	(352 359)	151 530	
Change in derivative financial instruments and other financial liability at fair value through profit or loss	112 574	(85 605)	
Change in amounts due to customers	168 804	(637 258)	
Change in provisions	6 879	(43 178)	
Change in other liabilities	495 777	750 557	
Income tax paid	(113 723)	14 564	
Current tax	254 399	120 310	
Net cash from operating activities	238 477	(726 078)	
			
B. Cash flows from investing activities			
Investing activity inflows	15 561 734	12 095 662	
Sale of shares in associates	-	47 000	
Sale of shares in subsidiaries, net of cash disposed	-	-	
Sale of investment securities	15 185 935	11 773 204	
Proceeds from sale of intangible assets and tangible fixed assets	1 734	605	
Other investing inflows	374 065	274 853	
Investing activity outflows	(14 055 666)	(10 624 111)	
Purchase of associates	(25 000)	-	
Purchase of subsidiaries, net of cash acquired	-	-	
Purchase of investment securities	(13 928 219)	(10 526 339)	
Purchase of intangible assets and tangible fixed assets	(102 447)	(97 615)	
Other investing outflows	-	(157)	
Net cash used in investing activities	1 506 068	1 471 551	

C. Cash flows from financing activities 			
Financing activity inflows	17	13 827	
Issue of debt securities 	17	-	
Other financing inflows	-	13 827	
Financing activity outflows	(1 088 688)	(747 548)	
Redemption of debt securities	(22 479)	-	
Dividends and other payments to shareholders 	(1 065 483)	(747 548)	
Other financing outflows	(726)	-	
Net cash from financing activities	(1 088 671)	(733 721)	
			
D. Total net cash flow (A.III+/-B.III+/-C.III)	655 874	11 752	
E. Net change in cash and cash equivalents	655 874	11 752	
F. Cash and cash equivalents at the beginning of the period	6 776 809	7 714 209	
G. Cash and cash equivalents at the end of the period (F+/- D)	7 432 683	7 725 961	

NOTES TO THE INTERIM CONDENSED FINANCIAL STATEMENTS 
1.	Basis of Preparation
These condensed interim financial statements of Bank Pekao S.A. have been prepared in accordance with International Accounting Standard 34 Interim Financial Reporting and with respect to matters not regulated by the above standard, in accordance with  the Accounting Act dated 29 September 1994 (Official Journal from 2002, No. 76, item 694 with amendments) and the respective laws and in accordance with the Decree of the Council of Ministers dated 21 March 2005 on current and periodical information provided by issuers of securities (Official Journal from 2005, No. 49, item 463).

These condensed interim financial statements have been prepared in accordance with the same accounting policies as presented in the interim consolidated financial statements of Bank Pekao S.A. Group as of 30 June 2005, except for accounting for equity investment as set out in the Note below.    

The interim consolidated financial statements of Bank Pekao S.A. Group have been prepared in accordance with International Financial Reporting Standards (IFRS) as adopted by the European Union and with respect to matters not regulated by the above standards, in accordance with  the Accounting Act dated 29 September 1994 (Official Journal from 2002, No. 76, item 694 with amendments) and the respective laws and in accordance with the Decree of the Council of Ministers dated 21 March 2005 on current and periodical information provided by issuers of securities (Official Journal from 2005, No. 49, item 463)
2.	Accounting policies
Accounting for investments in subsidiaries, joint ventures and affiliated entities 
In the separate financial statement, investments in subsidiaries, joint ventures and affiliated entities are recognized at cost. Investments’ book value is subsequently subject to impairment tests, according to IAS 36.  Impairment write down is recognized in the income statement under „Other operating expenses”. Dividends, representing income on investments are recognized in the income statement in the moment the Bank’s rights to receive a payment are established.  
Moreover, foreign equity investment is treated as non monetary assets. Non monetary assets, measured at historical cost expressed in foreign currency, are translated at exchange rate from the transaction date.  In case of the Bank’s foreign equity investment the cost was established using the exchange rate as of the IFRS adoption date. 
The effects of the first time adoption of IFRS were recognized in „retained earnings” and are presented further in the statement of changes in shareholders’ equity. 
3.	First time adoption of International Financial Reporting Standards
This note presents the reconciliation of net assets as of 1 January 2004, 30 June 2004, 31 December 2004, 1 January 2005 and the reconciliation of net financial result for the 1 Half 2004 between the previously published financial information according to Polish Accounting Standards (PAS) and the transformed comparative data according to IFRS disclosed in these financial statements.
Accounting principles according to IFRS differ in many respects from the PAS. See below for a discussion of differences between IFRS and PAS, which significantly affected the net financial result and net assets.

Recognition of assets and liabilities based on amortized cost
The International Accounting Standard 39 requires that certain financial assets should be recognized at amortized cost using the effective interest rate method.
Previously the Bank used fair value to recognize securities available for sale, for which interest revenues are recognized using the effective interest rate method. Securities held to maturity, financial lease receivables, and central investment-related receivables and payables were recognized at amortized cost using the effective interest rate method. Other financial assets and liabilities were recognized according to the amount payable increased with linearly accrued interest.
The Bank took advantage of the exemption from the requirement to transform comparative data pertinent to IAS 32, IAS 39 and IFRS 4. For those standards, the IFRS were adopted on 1 January 2005. Comparative data concerning those standards were prepared using previously applied accounting principles (policies).
As of 1 January 2005 the Bank made adjustments related to the recognition of other financial assets and liabilities at amortized cost using the effective interest rate method, as required under IAS 39. The results of adjustments made as of 1 January 2005 were disclosed in the following reconciliation of net assets as of 1 January 2005. 
Impairment  of financial assets
According to IAS 39, a financial asset is depreciated if its balance sheet value is higher than its estimated economic value. As of the balance sheet date, an economic entity is required to assess if there is objective evidence confirming such impairment of the financial asset. Such evidence may include information about the issuer’s significant financial difficulties or actual violation of an agreement by e.g. failure to pay interest or principal or falling behind with payments. If the depreciation occurs, the revaluation write-down will amount to the difference between the asset’s balance sheet value and the current value of expected, future discounted cash flows using the initial effective interest rate (economic value) for financial assets recognized at cost and using the current interest rate as well as for financial assets recognized at fair value.
According to the PAS, banks at least once a quarter review and classify their credit exposures into different risk groups (standard receivables, monitored receivables, substandard receivables, bad receivables and lost receivables). Classification is based on how long the receivables have been overdue and what the economic and financial situation of the borrower is. Special purpose provisions for credit exposures are created at least in amounts required of provisions applicable to different risk groups (from 1.5% to 100% of the purpose provision basis). In addition, under PAS the required specific provisions for credit exposures:
- related to retail lending facilities and loans classified as “standard” – are diminished by a 25% provision for general risk;
- classified as “monitored” – to be diminished by a 25% provision for general risk, created under Article 130 of the Banking Law.
The Bank took advantage of the exemption from the requirement to transform comparative data pertinent to IAS 32, IAS 39 and IFRS 4. For those standards, the IFRS were adopted on 1 January 2005. Comparative data concerning those standards were prepared using previously applied accounting principles.
As of 1 January 2005 the Bank made adjustments related to the recognition of other financial assets and liabilities at amortized cost using the effective interest rate method, as required under IAS 39. The results of adjustments made as of 1 January 2005 were disclosed in the following reconciliation of net assets as of 1 January 2005.

Financial Assets and liabilities portfolios according to IAS 39
IAS 39 sets out definitions of portfolios in a manner different to those defined in PAS. The requirement to move some financial instruments between portfolios results from the requirement to classify financial instruments in different portfolios according to IAS 39, which differs from PAS in this respect. In addition, pursuant to the exemption included in IFRS 1, the Group was also entitled to assign its financial instruments to financial asset at fair value through profit and loss or available for sale portfolios.
In view of the above, the Group categorized financial instruments as financial assets or liabilities recognized at fair value through profit and loss or available for sale as of 1 January 2004. The movement of financial instruments between portfolios measured pursuant to different principles did not affect the Group’s financial result.
Investments in subsidiaries, joint ventures and affiliated entities
In accordance with the IFRS the Bank’s  investments in subsidiaries, joint ventures and affiliated entities are recognized at cost in the Bank separate financial statement. 
Investments’ book value is subsequently subject to impairment tests, according to IAS 36.  In accordance with the Polish Accounting Standards the investments were valued using the equity method.
The effect of hyperinflationary economy 
The International Accounting Standard 29 „Financial Reporting In Hyperinflationary Economies” (IAS 29) requires that assets and liabilities disclosed in a period of hyperinflation should be recognized in current prices as of the end of the hyperinflation reporting period and be the basis for measuring assets and liabilities in financial statements for the periods to come. This standard is applicable for non-monetary balance sheet items. Significant non-monetary items for the Bank include fixed assets, shares classified as non-current assets, and equity. From 1982 to 1984 and from 1988 to 1996 the Bank operated in a hyperinflationary economy. The Bank did not apply IAS 29 in previous years when performing fixed assets revaluation as of 1 January 1995, in accordance with applicable Polish regulations in force, in order to reflect the inflation’s impact on their balance sheet value by adopting revaluation indexes determined by the Ministry of Finance for respective groups of fixed assets. This revaluation was performed in compliance with IAS 29, as the Bank did not use the general price indices nor did it perform a fixed assets revaluation as of 31 December 1996.
Taking advantage of the exemption allowed by IFRS 1, the Bank recognized selected items  of tangible assets acquired before the period of hyperinflation at a fair value as of the day of transition to IFRS, that is, as of 1 January 2004, and it used this fair value as the deemed cost determined for that day. 
The effect of adjustments made on that account as of 1 January 2004 is presented in the following reconciliation of net assets as of 1 January 2004. The aggregate amount of fair value used as the anticipated cost as of 1 January 2004 in accordance with IFRS 1 was PLN 148.888 ths.
IAS 29 “Financial Reporting in Hyperinflationary Economies” requires to restate all components of of owners’ equity, exept retained earnings and any revaluation surplus, by applying the general price index for the period of hyperinflation. Such retrospective application would result in an increase of share capital and other capitals and a corresponding decrease in retained earnings.
Share based payments
The Bank applied IFRS 2 with reference to capital instruments that were granted after 7 November 2002, if these capital instruments were not acquired until 1 January 2005. Therefore, under the IFRS 2, it was required to include only the capital part of bonds with pre-emptive rights to take up the Bank’s shares, granted to the Bank’s employees as part of the Incentive Program. 

General risk provision 
In accordance with IAS 30, general risk provisions are not to be part of liabilities Instead, they should be disclosed as a separate item of the undistributed result. The value of the general provision which is presented in the undistributed result, as permitted by IAS, is PLN 248.453 ths.  as of 1 January 2005.
The aforementioned adjustments resulting from differences between the requirements of PAP and IFRS affected the value of assets/income tax provision as of 1 January 2004, 31 December 2004, and 1 January 2005.
The effect of changes in accounting policies due to adoption of IFRS are presented below:
Changes in Shareholders’ Equity 
As of 01.01.2004		
Net equity according to PAS	7 156 027	
Changes:		
subsidiary shares valuation 	(14 674)	
total recognized sell-bay-back and buy sell-back	188	
change in fixed assets 	148 888	
adjustment of deferred tax	(39 717)	
Total changes 	94 685	
Net equity according to IAS 	7 250 712	
		
As of 30.06.2004 		
Net equity according to PAS	6 990 461	
Changes:		
subsidiary shares valuation 	(41 687)	
total recognized sell-bay-back and buy sell-back	96	
change in fixed assets 	147 156	
accrued fees adjustment	(8 527)	
adjustment of deferred tax	(27 619)	
Total changes 	69 419	
Net equity according to IAS	7 059 880	
		
As of 31.12.2004		
Net equity according to PAS	7 903 625	
Changes :		
subsidiary shares valuation 	(114 158)	
total recognized sell-bay-back and buy sell-back	(501)	
perpetual usufruct rights	199	
change in fixed assets 	144 141	
accrued fees adjustment	(15 819)	
adjustment of deferred tax	(21 391)	
Total changes	(7 529)	
Net equity according to IAS	7 896 096	

As of 1.01.2005 		
Net equity according to PAS	7 903 625	
Changes:		
subsidiary shares valuation 	(114 158)	
previous results from loans provisions adjustment	(222 030)	
total recognized sell-bay-back and buy sell-back	(501)	
perpetual usufruct rights	199	
change in fixed assets 	144 141	
accrued fees adjustment	(15 819)	
adjustment of deferred tax	8 180	
Total changes	-199 988	
Net equity according to IAS	7 703 637	

Profit and Loss account for the I half 2004 – a comparison of previously published financial data with comparative data converted in accordance with IFRS (data according to PAP are presented in the new classification)
Item	Income statement for the period 01.01-30.06.04 (PAP)	Changes affecting result	Income statement for the period 01.01-30.06.04          (IFRS*)	
Interest income	1 770 287	12 041	/1	1 782 328	
Interest expense 	(706 431)	(14 888)	/1	(721 319)	
Fee and commission income	767 478	(8 527)	/2	758 951	
Commission expense	(71 622)	-		(71 622)	
Dividend income	-	41 081	/4	41 081	
Result on financial instruments at fair value	590	2 755	/1	3 345	
Result on investment securities	4 120	-		4 120	
Foreign exchange result	149 281	-		149 281	
Other operating income	60 824	-		60 824	
Other operating expenses	(55 367)	(107)		(55 474)	
		(70)	/3		
		(37)	/4		
Impairment losses on loans and advances	(167 483)	-		(167 483)	
Overhead costs	(1 062 526)	(4 010)		(1 066 536)	
		(1 661)	/3		
		(380)	/4		
		(1 969)	/5		
Profit before income tax	689 151	28 345		717 496	
Share of profit of associates	65 267	(65 267)	/4	-	
Income tax expense	(89 015)	11 706	/1-4	(77 309)	
Net profit (loss)	665 403	(25 216)		640 187	
					
(*) Without changes due to amortized cost measurement  of loans and advances using EIR and without changes relating to impairment of loans and advances	
					
Adjustments:					
1/ recognition of adjustments related to financial assets and liabilities due to sell-buy-back		
2/ adjustment due to amortization of fees and commissions over time				
3/ adjustment to depreciation costs due to the revaluation of some fixed assets and property rights	
4/ adjustments related to the revaluation of equity investments
5/ inclusion of share based payments according to IFRS 2				

4.	Interest income 
	1 half 2005	1 half 2004	
	‘000 PLN	‘000 PLN	
Placements in other banks	148 055	103 959	
Other placements on money market 	34 370	19 558	
Loans to customers	1 202 203	1 102 537	
Investment securities	471 783	497 827	
Financial assets valued at fair value through  profit an loss	70 735	58 447	
			
Total	1 927 146	1 782 328	

			
5.	Interest expense
	1 half 2005	1 half 2004	
	‘000 PLN	‘000 PLN	
Other bank’s deposits	41 074	35 631	
Other deposits on the money market 	63 498	14 887	
Amounts due to customers  	720 545	629 769	
Amortization of premium on investment securities  	21 850	27 205	
Debt securities in issue 	708	13 827	
			
Total	847 675	721 319	

6.	Fee and commission income
	1 half 2005	1 half 2004	
	‘000 PLN	‘000 PLN	
Credits and loans granted	58 343	89 004	
Guarantees and similar operations	6 840	7 188	
Securities operations 	12 655	13 788	
Accounts maintenance 	300 500	281 319	
Acquisition services 	131 111	125 528	
Payment cards	169 915	161 293	
Other	36 566	80 831	
			
Total	715 930	758 951	

			
7.	Fee and commission expense 		
	1 half 2005	1 half 2004	
		‘000 PLN	‘000 PLN	
Securities operations	2 114	1 789	
Acquisition services	1 312	731	
Payment cards	56 969	62 789	
Accounts maintenance	1 639	1 373	
Other	7 172	4 940	
			
Total	69 206	71 622	

			

8.	Result on financial instruments valued at fair value
	a/ Result on assets and liabilities held for trading

		1 half 2005	1 half 2004	
			‘000 PLN	‘000 PLN	
Derivative instruments	(40 392)	15 336	
Debt Instruments	74 339	25 895	
			
Total	33 947	41 231	

			

b/ Result on financial assets and financial liabilities valued  at fair value through profit and loss 

		1 half 2005	1 half 2004	
			‘000 PLN	‘000 PLN	
	                		
Debt Instruments	17 916	(37 886)	

Total	17 916	(37 886)	

Total result on financial instruments valued at fair 
value (a+b)	51 863	3 345	

9.	Result on investment securities
Realized result on assets and financial liabilities other than valued at fair value through profit and loss
	1 half 2005	1 half 2004	
	‘000 PLN	‘000 PLN	
Realized profits			
Financial assets available for sale	33 757	3 810	
Investments held to maturity	107	743	
			
Total	33 864	4 553	

Realized losses			
Financial assets available for sale	37	16	
Investments held to maturity	9	417	
			
Total	46	433	

Net realized profits 	
33 818	
4 120	

10.	Other operating income and expenses
	1 half 2005	1 half 2004	
					‘000 PLN	‘000 PLN	
Other operating income			
Sale or liquidation of fixed assets, intangible assets and assets for disposal	657	600	
Recovered overdue, lost and written-off receivables	7 008	6 714	
Received damages and penalties	1 733	 788	
Rent and other revenue 	3 779	14 098	
Recovered debt recovery Expenses	1 416	 3 247	
Release of provisions for the disputed and other receivables	1 625	16 710	
Write-backs 	  926	2 899	
Other revenue 	 23 505	15 768	
			
Total	50 649	60 824	

Other operating expenses			
Sale and liquidation of the fixed assets, intangible assets, and assets for sale.	
2 698	
6 603	
Written off receivables	        5	217	
Paid damages and penalties 	    185 	        286	
Donations made	      3 044	       3 127	
Depreciation of company set-up costs	          1 495	      1 495	
Debt recovery costs	    6 269 	        6 597	
Provision costs for disputed and other receivables	            1 293	       1 269	
Impairment charges of the investments in the associate and joint venture entities – entities valued using the equity method		20 502	
Impairment charges on other assets	2 893	3 917	
Other costs 	20 494	11 461	
			
Total	38 376	55 474	

11.	Impairment losses on loans and advances
	1 half 2005	1 half 2004	
				‘000 PLN	‘000 PLN	
Impairment charges			
Impairment charges on loans	606 574	664 456	
Impairment charges on other financial assets	-	7 684	
Provisions created for off-balance sheet liabilities	29 205	16 720	
Total	635 779	688 860	
			
Release of the provisions			
Release of the provisions for loans	486 113	495 311	
Release of the provisions for other financial assets	-	-	
Release of the provisions for off-balance sheet liabilities	23 046	26 066	
Total	509 159	521 377	
			
Net impairment charges	126 620	167 483	

12.	Overhead costs 
	1 half 2005	1 half 2004	
				‘000 PLN	‘000 PLN	
Payroll/Employee benefits a/ 	543 516	531 851	
Non-personnel costs 	359 867	361 810	
Taxes and charges	11 187	20 204	
Annual Bank Guarantee Fund fee 	3 076	5 123	
Depreciation	150 640	147 548	
			
Total	1 068 286	1 066 536	

a/ Payroll/Employee benefits
	1 half 2005	1 half 2004	
				‘000 PLN	‘000 PLN	
Wages and salaries	465 413	454 843	
Insurance and other charges related with employees 	75 272	75 039	
Cost of share-based payments 	2 831	1 969	
			
Total	543 516	531 851	

	1 half 2005
	1 half 2004	

13.	Due from banks
	30.06.2005	31.12.2004	30.06.2004	
	‘000 PLN	‘000 PLN	‘000 PLN	
Current account	3 622 595	1 423 587	3 040 714	
Deposits in other banks	2 768 616	3 608 831	4 535 706	
Loans  given	553 374	411 693	448 697	
Unlisted securities	1 156	7 203	9 025	
Repo transactions	86 805	486 093	516 872	
Funds in transit	316 389	60 440	31 370	
Interest	27 680	34 739	28 851	
				
Total	7 376 615	6 032 586	8 611 235	

Provision  for the impairment of receivables	(86 675)	(75 988)	(93 142)	
				
Total net	7 289 940	5 956 598	8 518 093	

14.	Financial assets held for trading 
	30.06.2005	31.12.2004	30.06.2004	
	‘000 PLN	‘000 PLN	‘000 PLN	
Debt securities				
- issued by the State Treasury	2 220 737	2 939 203	889 089	
- issued by the local governments	-	-	27 721	
				
Total financial assets held for trading	2 220 737	2 939 203	916 810	

15.	Derivative financial instruments
As of 30th June 2005
	Nominal values of base instruments	Fair value (negative)	Fair value (positive)	
Currency transactions				
Currency swaps	7 190 829	(32 005)	75 946	
Currency forward contracts	7 985 195	(42 623)	20 122	
Currency options	3 576 508	(57 739)	57 739	
Cross Currency IRS	1 957 337	(66 864)	69 409	
Interest rate transactions				
Interest rate swaps (IRS)	17 517 862	(505 963)	379 821	
Forward Rate Agreement (FRA)	19 180 000	(24 063)	21 612	
Futures for debt securities	52 571	-	83	
Other transactions				
Securities forward 	3 732 092	(3 651)	3 492	
Options related to equity securities 	348 983	(3 349)	3 485	
Warrants	151	-	-	
				
Total derivative instruments	61 541 528	(736 257)	631 709	

As of 31th December 2004
	Nominal values of base instruments	Fair value (negative)	Fair value (positive)	
Currency transactions				
Currency swaps	9 705 616	(201 235)	197 871	
Currency forward contracts	4 831 140	(67 503)	50 675	
Currency options	1 385 744	(14 376)	14 375	
Cross Currency IRS	947 916	(80 931)	74 140	
Interest rate transactions				
Interest rate swaps (IRS)	11 484 833	(244 970)	153 351	
Forward Rate Agreement (FRA)	10 895 000	(8 624)	7 162	
Futures for debt securities	45 653	-	-	
Other transactions				
Securities forward 	1 388 368	(1 142)	1 075	
Options related to equity securities 	322 328	(4 902)	4 832	
Warrants	151	-	-	
				
Total derivative instruments	41 006 749	(623 683)	503 481	

As of 30th June 2004	Nominal values of base instruments	Fair value (negative)	Fair value (positive)	
Currency transactions				
Currency swaps	15 230 452	(68 358)	85 728	
Currency forward contracts	6 895 331	(23 084)	24 998	
Currency options	2 089 934	(4 536)	1 036	
Cross Currency IRS	1 832 358	(69 513)	61 833	
Interest rate transactions				
Interest rate swaps (IRS)	8 352 819	(179 952)	168 036	
Forward Rate Agreement (FRA)	11 224 084	(7 099)	7 851	
Futures for debt securities	62 789	-	-	
Other transactions				
Securities forward 	3 708 305	(1 085)	1 365	
Options related to equity securities 	304 015	-	5 040	
Warrants	151	-	-	
				
Total derivative instruments	49 700 238	(353 627)	355 887	

16.	Other financial instruments measured at fair value through profit and loss

	30.06.2005	31.12.2004	30.06.2004	
	‘000 PLN	‘000 PLN	‘000 PLN	
Debt securities				
- issued by other financial entities 	812 483	741 528	916 182	
- issued by non-financial entities	-	21 842	31 862	
- issued by the State Treasury	923 845	573 351	660 261	
				
Total other financial instruments valued to the fair value through the financial result	1 736 328	1 336 721	1 608 305	

17.	Loans and advances to customers
	30.06.2005	31.12.2004	30.06.2004	
	‘000 PLN	‘000 PLN	‘000 PLN	
Loans	30 586 037	28 781 493	28 361 779	
Payment cards receivables	96 781	84 416	62 480	
Purchased receivables	339 216	368 842	522 967	
Realized guarantees and commitments	39 513	40 833	50 600	
Unlisted securities	69 814	565 779	633 529	
Repo transakctions	15 891	196 282	225 309	
Receivables in transit	21 877	8 624	8 118	
Interest	127 012	129 993	117 815	
				
Total	31 296 141	30 176 262	29 982 597	

Provision  for the impairment of receivables	(4 049 419)	(3 642 553)	(3 624 540)	
				
Total net	27 246 722	26 533 709	26 358 057	
				
18.	Investment securities
	30.06.2005	31.12.2004	30.06.2004	
	‘000 PLN	‘000 PLN	‘000 PLN	
Available for sale	11 693 640	10 099 344	11 537 775	
Debt securities	11 650 712	10 056 411	11 494 738	
- issued by central banks	4 390	-	89 898	
- issued by other banks	45 033	120 270	1 626 169	
- issued by other financial entities	60 370	28 918	202 450	
- issued by non financial entities	392 333	395 322	218 839	
- issued by the State Treasury	10 576 397	8 948 163	8 803 384	
- issued by local governments	572 189	563 738	553 998	
Stock and shares in other entities	42 928	42 933	43 037	
Securities held to maturity	2 785 075	4 931 761	5 453 974	
- issued by central banks	-	-	115 408	
- issued by other financial entities	61 244	60 439	68 876	
- issued by the State Treasury	2 689 362	4 836 513	5 230 926	
- issued by local governments	34 469	34 809	38 764	
Total investment securities gross	14 478 715	15 031 105	16 991 749	
Impairment of securities available for sale	(860)	(860)	(916)	
Impairment of securities held to maturity	(1 771)	(1 788)	(1 992)	
				
Total investment securities net	14 476 084	15 028 457	16 988 841	

19.	Investments in subsidiaries
	30.06.2005	31.12.2004.	30.06.2004.	
	‘000 PLN	‘000 PLN	‘000 PLN	
 In banks	21 340	21 340	21 340	
 In other financial institutions	476 478	476 478	450 148	
 In other financial institutions	46 983	46 983	46 274	
				
Total	544 801	544 801	517 762	

20.	Investments in joint ventures entities
	30.06.2005	31.12.2004.	30.06.2004.	
	‘000 PLN	‘000 PLN	‘000 PLN	
 In banks	-	-	-	
 In other financial institutions	-	-	-	
 In other financial institutions	-	-	2 089	
				
Total	-	-	2 089	

21.	Investments in associates entities
	30.06.2005	31.12.2004.	30.06.2004.	
	‘000 PLN	‘000 PLN	‘000 PLN	
 In banks	-	-	-	
 In other financial institutions	46 691	28 321	41 664	
 In other financial institutions	369	369	369	
				
Total	47 060	28 690	42 033	

22.	Intangible assets
	30.06.2005	31.12.2004	30.06.2004	
	‘000 PLN	‘000 PLN	‘000 PLN	
Research and development cost	38 846	45 966	42 921	
Concessions, patents, licences and similar items:	498 597	495 816	509 436	
     computer software	498 597	495 816	509 436	
Rother intangible	80 739	76 200	45 071	
Prepayments for intangible fixed assets			6	
				
Intangible assets	618 182	617 982	597 434	

23.	Tangible fixed assets
	30.06.2005	31.12.2004	30.06.2004	
	‘000 PLN	‘000 PLN	‘000 PLN	
Land	9 753	9 531	10 755	
Buildings	1 150 560	1 167 430	1 199 806	
Machinery and equipment	255 703	259 288	281 772	
Means of transport	12 896	10 193	9 917	
Other tangible fixe assets	18 284	21 682	28 567	
Capital work In progress	22 351	50 137	30 133	
Prepayments for capital work in progress	63	1 948	-	
				
Tangible fixed asse	1 469 610	1 520 209	1 560 950	

24.	Amounts due  to other banks
	30.06.2005	31.12.2004	30.06.2004	
	‘000 PLN	‘000 PLN	‘000 PLN	
Current accounts	321 767	581 739	1 438 620	
Deposits of other banks	1 385 877	475 011	480 553	
Received credits and loans	81 333	82 285	91 938	
Financial resources under way	137 427	21 398	41 486	
Repo transakctions	150 090	186 281	373 501	
Interest charged	4 945	4 082	2 221	
				
Total amounts due to other banks	2 081 439	1 350 796	2 428 319	

25.	Other financial liabilities at fair value through profit or loss
	30.06.2005	31.12.2004	30.06.2004	
	‘000 PLN	‘000 PLN	‘000 PLN	
Liabilities due to short securities 	85 860	438 219	151 530	
Total liabilities held for trading	85 860	438 219	151 530	

26.	Amounts due to customers
	30.06.2005	31.12.2004	30.06.2004	
	‘000 PLN	‘000 PLN	‘000 PLN	
Amounts due to business entities	13 973 748	13 533 621	11 848 793	
Resources at current accounts and O/N deposits	7 644 345	7 919 272	7 754 328	
Deposits and time money	6 261 547	5 572 761	4 040 505	
Other	46 605	18 767	39 646	
Interest charged	21 251	22 821	14 314	
Amounts due to budget entities	3 541 000	2 800 385	2 794 345	
Resources at current accounts and O/N deposits	2 047 726	2 033 936	1 702 632	
Deposits and time money	1 489 086	763 834	1 085 211	
Other	-	-	2 569	
Interest charged	4 188	2 615	3 933	
Amounts due to individuals 	26 864 888	27 471 978	31 452 301	
Resources at current accounts and O/N deposits	10 369 105	9 536 828	10 874 086	
Deposits and time money	16 426 029	17 838 856	20 425 858	
Other	7	2 991	-	
Interest charged	69 747	93 303	152 357	
Repo transakctions	1 649 532	2 054 380	536 321	
Deposits	1 647 263	2 046 820	535 777	
Interest charged	2 269	7 560	544	
				
Total amounts due to customers 	46 029 168	45 860 364	46 631 760	

27.	Debt securities in issue
	30.06.2005	31.12.2004	30.06.2004	
	‘000 PLN	‘000 PLN	‘000 PLN	
Liabilities due to issue of 				
  bonds	17	22 479	510 512	
Interest charged	-	726	16 799	
				
Total liabilities due to issue of debt securities	17	23 205	527 311	

28.	Provisions
	30.06.2005 r.	31.12.2004 r.	30.06.2004 r.	
	‘000 PLN	‘000 PLN	‘000 PLN	
Restructurings	4 840	9 000	7 293	
Matters of dispute	10 658	11 081	5 570	
Old-age pensions	60 256	57 516	48 156	
Granted liabilities and guarantees	25 052	16 270	22 526	
General risk	-	248 453	248 453	
Other reserves	1 694	1 755	2 114	
				
Total	102 500	344 075	334 112	

29.	Equity
	30.06.2005	31.12.2004	30.06.2004	
	‘000 PLN	‘000 PLN	‘000 PLN	
Share capital	166 482	166 482	166 122	
Reserve capital	1 550 341	1 550 341	1 527 204	
Share premium	1 361 034	1 361 034	1 337 897	
Other	189 307	189 307	189 307	
Revaluation reserve	216 238	(10 076)	(223 241)	
Valuation of securities available for sale	266 148	(13 429)	(276 046)	
 Deffered tax 	(51 240)	1 983	53 446	
 Other	1 330	1 370	(641)	
General banking risk fund	1 067 850	1 067 850	1 067 850	
Other reserves	3 790 599	3 513 080	3 513 082	
Convertible Bond-equity component	8 426	5 595	2 764	
Retained earnings	67 363	365 912	365 912	
Net profit	730 938	1 236 912	640 187	
				
Total	7 598 237	7 896 096	7 059 880	

30.	Contingent liabilities and insurance contracts 
Financial obligations granted
	30.06.2005	31.12.2004	30.06.2004	
	‘000 PLN	‘000 PLN	‘000 PLN	
Granted financial liabilities in total:	10 907 320	10 738 450	11 049 137	
- towards financial entities	2 109 147	1 890 271	1 799 187	
- towards non-financial entities	8 261 150	8 458 122	8 940 002	
- towards the budget	537 023	390 057	309 948	
Including: granted irrevocable liabilities	10 702 287	10 540 989	10 420 895	
Guarantees granted
	30.06.2005	31.12.2004	30.06.2004	
	‘000 PLN	‘000 PLN	‘000 PLN	
1) Liabilities granted towards financial entities:	136 555	117 443	496 712	
- guarantees	113 663	98 225	478 884	
- sureties	7 300	7 300	7 100	
- confirmed export letters of credit	15 592	11 918	10 728	
2) Liabilities granted towards non-financial entities: 	1 148 178	752 900	652 869	
- guarantees	1 147 747	752 664	652 374	
- sureties	431	236	7	
- confirmed export letters of credit	-	-	488	
3) Liabilities granted towards the budget: 	61 367	61 223	62 874	
- guarantees	57 617	57 473	57 424	
- sureties	-	-	-	
- endorsements 	3 750	3 750	5 450	
				
Granted liabilities in total	1 346 100	931 566	1 212 455	

31.	Issuances, repurchases, and repayments of debt securities 
	30.06.2005	31.12.2004	30.06.2004	
	‘000 PLN	‘000 PLN	‘000 PLN	
Balance at the beginning of the period	23 205	513 484	513 484	
a) increase (by title)	17	22 479	13 827	
   - issue	17	22 479	-	
   - accrued interest	-	-	13 827	
b) decrease (by title)	(23 205)	(512 758)	-	
   - redemption	(22 479)	(510 512)	-	
   - accrued interest	(726)	(2 246)	-	
				
Total liabilities due to issue of debt securities	17	23 205	527 311	

32.	Dividends paid 
The date of dividend payment for the 2004 profit was set to 1st June 2005. The dividend amounted to 6,40 PLN per share. Total amount of dividend paid was PLN 1 065 483 ths.   

33.	Litigation 
As of 30th June 2005 the number of the legal proceedings in courts, appropriate bodies of arbitration or public administration bodies, concerning the liabilities of the Bank was 321. The total value of them was PLN 662.982 ths. 
According to the issuer’s Management Board opinion only one of the largest proceedings, that have been in progress against the Group during the reporting period, give rise to risk of cash outflow as a result of fulfilling the obligation.
The action in the course of proceedings brought by Ispat Polska Stal S.A. against Bank Pekao S.A.  The subject of litigation is to devoid the Bank execution deed issued by the Bank and to adjudge PLN 8.405 ths. from the Bank.  
As of the reporting day it was not possible to reliably estimate the value of potential cash outflow related to these proceedings.  
As regards all other significant proceedings in progress against the Bank, the risk of cash outflow is nominal.  

34.	Transactions with related entities

Income and expenses of Bank Pekao SA  from transactions with related entities in the first half of 2005:	

	Subsidiaries entities	Associated entities	
			
Interest income	24 666	3 102	
Interest expense  	25 812	1 811	
Fee and commission income	3 523	279	
Fee and commission expense	30	54	
Other income	2 807	2	
Other expenses	20 755	5 052	

			
Income and expenses of Bank Pekao SA  from transactions with related entities in the first half of 2004:	
			
	Subsidiaries entities	Associated entities	
			
Interest income	23 029	2 943	
Interest expense  	11 505	1 114	
Fee and commission income	3 355	211	
Fee and commission expense	40	90	
Other income	3 301	-	
Other expenses	21 119	2 991	

In the first half of 2005 and the first half of 2004 there were no income and expenses of Bank Pekao SA  from transactions with joint-venture entities.
Transactions with related entities are of a depository and credit nature:
	Dependent entities	Joint-ventures entities	Associated entities	
	30.06.2005	30.06.2004	30.06.2004	30.06.2004	30.06.2005	30.06.2004	
	‘000 PLN	‘000 PLN	‘000 PLN	‘000 PLN	‘000 PLN	‘000 PLN	
Credits and loans 	1 009 799	939 698	-	-	79 868	92 180	
Deposits	1 083 304	922 591	-	7 398	141 717	42 220	
The off-balance sheet exposure related to: financing of related entities as of 30th June 2005 amounted to PLN 668 873 ths. (as of 30.06.2004 PLN 359 469 ths.); related to guaranting amounted to PLN 373 ths. (as of 30.06.2004 PLN 396 ths.).
Transactions with related entities are based on standard market rates and conditions. 

35.	Events after the balance sheet date
Until the date of signing of these financial statements, there were no significant events after balance sheet date.