BOS management happy with 2002 profit figures which show turnaround

Bank Ochrony Srodowiska (BOS) failed to meet its 2002 profit forecast of zl. 40.02 million, closing the year with earnings of zl. 34.8 million. However, the management was not dissatisfied as, "We were simply granting loans slower than expected, our interest margins were lower, we created more reserves than expected in the second half of the year, while our brokerage house made a loss of zl. 4.1 million," explained BOS president Jozef Koziol. The management had reason to be pleased with the results as in 2001 it recorded a zl. 38.8 million loss. Nevertheless, the size of its bad debts increased from 14.2% to 19% of its portfolio in 2002. Koziol promised that from 2004 the bank will start to pay its shareholders dividends from its profits. (Rzeczpospolita, p. B5) M.M.