Pekao S.A. the only bright light amid banking gloom

The latest financial results announced by Poland's banks have confirmed the slowdown in the banking sector. The only exception is the country's largest publicly-listed bank, Pekao S.A., which boosted its unconsolidated net profit by 50% in the third quarter, to zl.347.5 million. The bank, whose majority shareholder is UniCredito Italiano, earned zl.903 million in the first nine months of the year and is standing by its net profit forecast for 2001 of zl.1.25 billion. Addressing a news conference, Pekao S.A. chief executive Maria Wisniewska said, "I am very happy with the results as they show that, despite the unstable market conditions, the bank is very flexible and is able to generate profits." She went on, "We are maintaining our net profit forecast for 2001." Kredyt Bank, on the other hand, has cut its 2001 earnings forecast by almost 30%, to zl.162 million from the expected zl.232 million, after announcing that it earned zl.114.8 million in the first nine months. Kredyt Bank, whose strategic shareholder is Belgium's KBC, said in a statement, "The worsening economic condition of debtors forces the bank to create additional reserves, which will have an impact on its financial results." Another poor performer was Bank Zachodni WBK, whose profits fell below zl.20 million in the third quarter, compared to zl.92.3 million in the same period a year ago. CEO Jacek Ksen said, "This year's results were influenced by the cost of the merger of BZ and WBK. I think all the merger costs will be absorbed this year, and next year's results will not be influenced." (Gazeta Wyborcza, p. 27; Reuters) A.K.