BRE Bank ready to take a controlling stake in German bank

BRE Bank is considering the purchase of shares in Rheinhyp-BRE Bank Hipoteczny if the German group Eurohypo decides to put them up for sale, BRE president Wojciech Kostrzewa said on Friday. Currently, BRE holds a 50% stake in Rheinhyp-BRE which is the largest mortgage bank in Poland. According to Kostrzewa, Eurohypo may be willing to sell its shares, as in line with the its new strategy, the bank intends to focus on the US market. Kostrzewa also said that currently BRE does not need a new share issue and that its subsidiaries will not post a loss for 2003. At the end of the year, the bank is planning to achieve a return on capital of 5%. After the first half of 2003, the BRE group generated a net profit in excess of zł. 55 million. (Parkiet, p. 3). A.Z.