Merged PBK-BPH Bank will save zl. 200 million

   The merger of Germany's HypoVereinsbank-controlled Bank Przemyslowo-Handlowy (BPH) and Bank Austria-controlled Powszechny Bank Kredytowy (PBK) will save zl. 200 million ($47.6 million) in operating costs, BPH Spokesman Robert Waker said last week. He confirmed the bank's earlier goal to reduce costs by 50-52% by 2005.

   "As part of the savings, at least 1,200 workers will either lose or change jobs by the end of the year before the merger is finalized," Waker said.

   The merger is set to take place before the end of 2001, creating Poland's third-largest bank with assets of about zl. 41 billion ($9.8 billion), 2 million customers and 600 branches.

   Before the merger, the two banks had been suffering from sagging borrowing levels and lower-than-expected returns. Rising unemployment had also decreased demand for the banks' services.