Bad debts and falling Szeptel share price impact on LG Petro Bank losses
LG Petro Bank's half-year report showed that its gross loss amounted to zl.
31 million. This is a figure zl. 20 million worse than reported for the
first quarter. According to the bank's spokeswoman Barbara Szolomicka, the
poor result was mostly due to creating reserves to cover the drop in the
value of Szeptel shares owned by the bank and its worsening loan portfolio.
A year ago bad debts made up 3.2% of the loans portfolio, while by the end
of June this number jumped to 10.2%. The bank's directors claim that there
are chances to improve the results before the year's end. LG Petro Bank will
soon be taken over by Scandinavian Nordea Group. (Parkiet, Sept. 28-30, p.
7) M.M.
