Bank Pekao falls on profit warning fears

Shares in Bank Pekao suffered losses late last week on growing fears that Eastern Europe's largest private lender would revise down its full-year profit target due to Poland's weak economic growth, traders said. The stock, which earlier this year was on a record-breaking run, dropped 2.2% to zł. 80.7 Friday - a whisker off its 2002 low. The heavyweight bank has seen its value fall more than 10% this week and 30% since the record highs hit in May. Pekao, a unit of UniCredito Italiano, would not comment on market speculation it may cut its 2002 forecasts. "We have a global fall in the financial sector, but people are also worried that Pekao will issue a profit warning," said Grzegorz Zawada, a banking analyst at Erste Securities. Erste expects Pekao, which posted a spectacular profit rise last year thanks to tight cost control, to cut its zł. 1.4 billion ($341 million) net profit target by 10-15%. Last month Pekao said it would lose as much as zł. 150 million ($36.6 million) in 2002 from its heavy loan exposure to a bankrupt Polish shipyard, but maintained its earnings targets for this year. - Reuters