BPH set for new highs

Józef Wancer, the chief executive of BPH, told daily Gazeta Prawna that the bank would also report a double-digit percentage rise in full-year profits over 2005, when its consolidated net profit reached a record zł.1.03 billion.

"Fourth-quarter financial results will be the best in the bank's history and full 2006 results will see a double-digit percentage rise over 2005," Wancer said.

BPH and Pekao are both owned by Italian lender Unicredit, following its protracted cross-border merger with German bank HVB. Under the terms of a deal struck between Unicredit and the Polish government, which had opposed the merger, BPH will be split up. Part of its branch network will be taken over by Pekao, to create Central Europe's biggest lender. The rest, together with its brand name, will be sold to one of six banks shortlisted in an international tender.

Wancer said the 'mini-BPH', which Pekao has said would remain one of Poland's top-10 lenders, would remain well-equipped to compete on the Polish market.

Unicredit plans to announce the results of the tender in April and to complete the transaction in Q3 of 2007. Wancer said the takeover of part of BPH assets by Pekao and the establishment of a new streamlined bank could be completed by the year's end. (Reuters)