Bank Zachodni WBK puts solid profits down to good management

A subsidy of Allied Irish Banks (AIB), Bank Zachodni WBK (BZ WBK) reported a pre-tax profit of zl. 89 million for the second quarter of 2002, as compared to zl. 39 million for the same period of 2001. "This stems from higher revenues, as the group focused on strategic products with high-growth potential areas, effective cost-control and lower provisions," the bank said in a statement attached to its results. BZ WBK half-year pre-tax profits rose by 67% to zl. 182 million, but the consolidated net profit fell to nearly zl. 73 million in the second quarter of 2002, down 24% from the same period of 2001. However analysts point out that the bank's bottom-line was deceptive as last year's figure was inflated by a large tax refund linked to the merger of AIB's two units of Bank Zachodni and WBK. "On a closer look these are very good results," said Grzegorz Zawada, analyst at Erste Securities. (Reuters)