Few winners in banking sector's first quarter results

The Polish banking sector's financial results for the first quarter of 2002 have proven to be a disappointment. The notable exceptions were Pekao, ING Bank Slaski and Fortis Bank, whose results were better than in the same period last year. Pekao's net profit was almost zl. 305 million, one-third better than in the year ago period. According to Pekao representatives, "the increase in net profit was achieved mostly as a result of a 13.2% increase in revenue, combined with strict cost control measures." ING Bank Slaski earned zl. 7 million more than last year. Bank Handlowy's doubling of its reserves (up to zl. 85 million) influenced the bank's worse than expected results, but its net profit still stood at at zl. 78.4 million. According to a recent National Bank of Poland (NBP) report, Polish banks in total have achieved only 65.7% of their projected profits for 2001. Gross profit for the sector in 2001 was zl. 5.8 billion, while net profit was zl. 4.1 billion. Pekao S.A. and PKO BP accounted for almost 60% of the gross profits of Poland's commercial banks. (Prawo i Gospodarka, p. 6; Rzeczpospolita, p. B5) P.W.