1,200 jobs to go in the wake of PBK - BPH merger

The merger of Powszechny Bank Kredytowy (PBK) of Warsaw and Bank Przemyslowo-Handlowy (BPH) of Krakow will create savings of zl.200 million, according to the new bank's president, Jozef Wancer. However, as part of the savings, at least 1,200 workers will lose their jobs, with the redundancies to be implemented before the merger is finalized. Wancer says the bank's aim will be to reduce costs by 50% to 52% by 2005. The two banks had been suffering in the unfavorable economic climate. Demand for borrowing had been falling, and their portfolios had been yielding reduced returns. In addition, the rising unemployment had affected demand for banking services. (Puls Biznesu, p. 4) K.K.