KB incurs losses but foresees better results in 2004

"The result was mainly caused by the necessity of creating large reserves amounting to zł.1.5 billion. Almost 70% of the sum was due to changes in the evaluation of guarantees," said Małgorzata Kroker-Jachiewicz, president of KB. She also added that results of last year's restructuring should be evident in 2004, explaining, "We lowered costs, improved the use of distribution channels and centralized the back office. Thanks to these moves we cut employment by 6%." KB received help in the restructuring program from its investor Belgian KBC, which took over securities worth zł.995 million. (Puls Biznesu, pp. 1, 10) M.M.