Bank Zachodni WBK announces full-year profit of zl. 273 million

Bank Zachodni WBK SA (BZ WBK) yesterday reported weaker than expected fourth quarter profits due to hefty tax payments, but pleased investors with low bad debt provisions and a dividend increase. The lender posted a quarterly net profit of zl. 58 million ($14.9 million), below the average zl. 75 million forecast in a Reuters poll. Its full-year net reached zl. 273 million, just below the management's goal of zl. 285 - zl. 300 million but up sharply from the zl. 149 million earned in 2001. The bank, which is the Warsaw bourse's fourth largest financial group by market value, said its quarterly pre-tax profit rose 43% from the previous three months to zl. 119 million, nearly half of which went on tax payments. "Our net profit is slightly below market forecasts because we decided to sell part of our debt, which is hard to recover. That resulted in a higher tax," Chief Executive Jacek Ksen told a news conference. BZ WBK plans to earmark nearly zl. 54 million, or zl. 0.74 per share, for a 2002 dividend payout. The bank paid zl. 0.42 per share in dividend last year - a fifth of its net profits. (Reuters) A.Z.