BRE Bank forecasts retail banking profit and losses of its Internet banks

BRE Bank deputy president Sławomir Lachowski announced that its retail division should produce its first profit in 2005, adding that this year's losses of Internet-based mBank and MultiBank are lower than initially anticipated. Lachowski forecasts an increase in loans taken by individual customers, reaching a value of zł. 280-300 million this year, compared to the current zł. 120 million. MultiBank's credit portfolio on the other hand amounted to over zł. 700 million in mid August, and is planning to grant further loans worth zł. 400 million by the end of the year. Some 70% of MultiBank's portfolio structure are mortgage loans. According to BRE's deputy president, this increase in demand for credit is a sign of economic recovery. Lachowski also plans to widen the offers of investment funds in the Internet-based banks. Retail customers of mBank have already invested zł. 150 million in these funds. (Parkiet, p. 6) A.K.