BRE Bank hit by losses on bonds and interest rates

BRE Bank had Q3 earnings of zł. 13.4 million, which means that its consolidated profit so far this year now stands at zł. 68.6 million. On the other hand, the institution incurred a zł. 15.4 million gross loss. The profit was not due to banking activity, but due to tax calculations. "In Q3 we lost on bonds, which has negatively affected our profit," said BRE Bank president Wojciech Kostrzewa. However, he refused to forecast whether the negative situation on the bond market will affect BRE's results in the fourth quarter. The bank's profit from interest rates dropped by almost zł. 480 million to zł. 840.6 million in comparison to the first three quarters of 2002. "If we reach an agreement with EuroHypo in relation to buying their 50% stake in Rheinhyp-BRE Bank Hipoteczny, we will consider a new issue shares. Part of raised proceeds will be used to paying for the purchase," explained Kostrzewa. The value of the issue is unlikely to exceed zł. 400 million. (Puls Biznesu, pp. 1, 10) M.M.