BRE Bank tries to save 2002 profits through redundancies

BRE Bank, concerned about its 2002 profits, has decided to make economies by laying off almost 500 employees, which is 17% of its staff. Analysts are not surprised as they believe this is the only way to save profits for the year. Analysts also see the bank's profit forecasts as too optimistic, as bad investments in Elektrim, Szeptel and Optimus have had an impact on the bank, forcing it to create reserves of at least zl. 70 million. The situation has been further complicated as it lent money to the now bankrupt Szczecin Shipyard, and was involved in financing the IPO of ITI, which did not come to fruition. Analysts say that the 2002 profit forecast of zl. 408 million should be scaled down by even zl. 200 million, bearing in mind that as the bank recorded first quarter profits of only zl. 26.3 million. It seems probable that Commerzbank, which has a 50% stake in BRE Bank, will seek to replace the president of the Polish bank, Wojciech Kostrzewa. (Prawo i Gospodarka, pp. 1, 4) M.M.