Bank Zachodni-WBK cites macroeconomic situation for lower profit forecast

Bank Zachodni-WBK has lowered its forecast for net profit for 2001, from zl.318 million to zl.154 million. The official reason given by the bank is the "worsening of the macroeconomic situation". Earlier in the year, when the formal merger took place between Bank Zachodni (BZ) and Wielkopolski Bank Kredytowy (WBK), and Bank Zachodni-WBK SA was created, the majority of analysts suggested that the first two years of the new bank's activities would be devoted to the restructuring of the poor credit portfolio which it inherited from BZ. Analysts are suggesting that the lowering of the profit forecast may be designed to prepare the market for an announcement on the creation of additional reserves. Pawel Gwiazda, an analyst with PBK Asset Management, says, "It is difficult to say what brought about the lowering of the forecast by as much as 50%. However, with the market situation not being the best, this results in the necessity to create reserves against credit risk. This is a possible reason for lowering the forecast." (Puls Biznesu, p. 8) P.W.