Majority of banks report first quarter profits down

A majority of the banks listed on the Warsaw Stock Exchange (WSE), eleven out of sixteen, recorded a decrease in profits in their first quarter reports. The biggest fall in profits, by about 50% as compared to the first three months of 2000, was experienced by Bank Handlowy (BH) and the two merging banks, Bank Przemyslowo-Handlowy (BPH) and Powszechny Bank Kredytowy (PBK). According to the reports submitted by WBK and Bank Rozwoju Eksportu (BRE), their profits fell by one-third. Yet the poorest results were those of BIG-Bank Gdanski, which earned only zl.8.6 million, compared to zl.113 million in 2000. Pekao S.A. proved to be the leader among the five financial institutions reporting rising profits, registering a 55% increase. The other winners include Kredyt Bank, Bank Slaski (both up 30-40%), LG Petro Bank, and BWR (or Deutsche Bank 24) Decreasing customer interest in expensive credit services, increased competition and interest margins were cited as the main reasons for the banks' poor financial performance. (Gazeta Wyborcza, p. 25) M. S.-C.