BRE Bank plans expansion, boosts equity

To achieve that, BRE will have to overtake ING BSK and Citibank Handlowy, and its assets will have to be increased by over zł. 5 billion. In order to do that, the bank needs extra capital. "In January or February we will decide upon a share issue," said Wojciech Kostrzewa, BRE Bank president. Details of the share issue have not been disclosed, although its volume is not expected to exceed 10% of its total equity, which currently stands at zł. 2.8 billion. Part of the funds raised will be spent on the purchase of the remaining 50% stake in mortgage bank Rheinhyp BRE from Germany's Eurohypo. This year's profits may be used to boost equity. The bank also aims to increase its liquidity ratio to 12%. It stood at 8.9% after three quarters of this year and will fall further by the end of 2003. (Puls Biznesu, p. 5) A.K.