Kredyt Bank reports first net loss in nine years' trading

Yesterday Kredyt Bank (KB), a unit of Belgian banc-assurance group KBC, reported the first full-year net loss in its nine-year stock market history after bad debt provisions doubled in 2002. KB, which has large loan exposure to the ailing construction, shipbuilding and manufacturing industries, suffered a zl. 331 million net loss in 2002 which contrasts to a zl. 79 million net profit a year earlier. The medium-sized bank, whose results will contribute to KBC's figures due on March 5, said net provisions for doubtful loans reached a record zl. 584 million last year. "No one had expected such a result. That could deal another blow to the sector as people will be scared of what other banks will show," said Robert Sobieraj, analyst at Citigroup's Bank Handlowy in Warsaw. KB Board member Malgorzata Kroker-Jachiewicz reiterated an earlier statement that the bank expected to return to profit this year amid signs of an economic recovery. (Puls Biznesu, pp. 1, 6; Reuters) M.M.