Bank PKO BP lowers its profit forecast for 2002 by 30%

According to the president of Bank PKO BP, its net profit for 2002, originally expected to be zl 1.2 billion, will be lower by around 30% due to a suspension of aid from the National Bank of Poland (NBP) and the Banking Guarantee Fund (BFG). The aid from the two institutions, as well as from the Treasury Ministry, was a part of recovery program that was to last until the end of 2003, but which was suspended at the beginning of the year. "The zl. 1.2 billion net profit plan anticipated the external aid which, when announced at the beginning of the year, allowed for a forecast financial result 30% higher than that which the bank could achieve on its own," said PKO BP president Andrzej Podsiadlo. The net profit of PKO BP in the first half of 2002 stood at zl. 720.9 million in comparison to zl. 704.3 million initially planned for that period. Despite the influx of capital made by the government to the bank at the end of 2000, with 13.96% of Stalexport shares and 5.38% in copper concern KGHM, PKO BP does not plan to be a long-term shareholder in industrial or commercial companies but rather in financial institutions, which could contribute to its market profile.(Rzeczpospolita, p. B5) P.W.