BRE expected to post first annual loss in ten years

BRE bank is expected to post its first full-year group loss in ten years as a listed company when it reports on Friday, as heavy provisions for bad loans and failed investments take their toll. According to a Reuters poll, analysts expect a fourth-quarter loss of zl. 229 million, down from a zl. 21 million profit in the same period of 2001, and a loss in 2002 of zl. 273 million after 2001's zl. 221 million profit. But analysts stressed the opacity of BRE's books, with Robert Brzoza of local bank PKO comparing the forecasting process to a game of Russian roulette. Predictions for the quarterly loss ranged from zl. 105 million to zl. 315 million. BRE has said it purged its loan and investment portfolio in the last quarter, creating big reserves, but with forecasts for net provisions ranging from zl. 115 million to zl. 394 million analysts are divided on the extent of the clean-up. (Reuters) A.C.