BZ WBK suffers poor

BZ BWK will cease to be the uncontested stock exchange leader in its sector. The bank is facing the same problems as the rest of the banking sector, namely falling profits and interest rate revenues. In the first quarter of 2003 the group posted a net profit of zł. 48.4 million - 32.7% lower than last year and 16% below Q4 2002. Last year the bank earned zł. 70 million each quarter, making their shares popular with stock market investors. The bank's management cite economic stagnation as the reason for poor results. Profits from interest rates amounted to zł. 370.5 million - 26% lower than last year. BZ WBK noted an increase in operational costs of 5.7%, bringing them to zł. 322.5 million. The bank also lost zł. 900 million due to withdrawals of deposits. (Puls Biznesu, p. 4) A.C.