Bank Pekao closes foreign branches; issues profits warning

Bank Pekao has recently started talks to sell its branch in Tel-Aviv, Israel. Before that, Pekao decided to close its branches in New York. This is the next Polish bank after Bank Handlowy and BPH PBK, which has decided to downsize its foreign operations. Pekao branches in Paris, New York and Tel Aviv initially hoped to win accounts with Polish immigrants. Sebastian Luczak, Pekao spokesman said that it is too early to say how much the bank would save from these closures, but one thing is certain, it will no longer face the losses incurred by the outlets. Pekao does not plan to close its remaining three foreign branches. This news came amidst the announcement that the bank lowered its 2002 net profit expectations to zl. 800 million, down from a target of zl. 1 billion. (Parkiet, p. 3) P.W.