BRE Bank avoids placing losses in Q3 results

BRE Bank has posted a Q3 net profit of zl. 30.2 million. At the same time the bank's management is still hoping that they will be able to close this year with only a slight loss, but analysts remain skeptical. The market expected BRE to increase its loss after the third quarter, but it managed to generate some profit. "However, we have to bear in mind that the bank's equity capital has decreased by zl. 60 million. This means that third quarter losses were not included in the profit and loss account, but in the balance sheet. Otherwise BRE could boast a positive result," said Marek Swieton, an ING BSK IM analyst. BRE Bank's president, Wojciech Kostrzewa, hopes that at the end of the year the balance losses will be eliminated thanks to the sale of assets. He reluctantly admitted that how large the losses will be may depend on the sale of BRE's stake in PTE Skarbiec pension fund. "Negotiations are in progress, but I do not think that the transaction will be concluded by the end of the year," Kostrzewa said. (Puls Biznesu, p. 6) A.Z.