Kredyt Bank stock hit by Q2 bad loans scared

At the end of Tuesday's session on the Warsaw Stock Exchange (WSE) the share price of Kredyt Bank (KB) dropped following rumors that in the second quarter the bank is planning to create reserves of about zł. 100 million and is likely to incur a considerable loss for the April-June period. "KB may have to put aside reserves for difficult loans. It is still unknown exactly how high these losses will be," said a person from the banking sector who wished to remain anonymous. In the first quarter, the bank generated a net profit of around zł. 6 million. The financial results for the second quarter will be announced on August 14. According to the same anonymous source, bad debts in KB's portfolio amounted to 19% in the second quarter, slightly below the banking sector average which is now 20%. (Puls Biznesu, p. 3) A.Z.