PKO BP - the privatization of an overstaffed underachieving bank

PKO BP employs around 36,500, while Czech Komercni Banka has 8,800, Hungarian OTP 8,000 and Austrian Creditanstalt 24,400 employees. The three banks last year posted higher profits than PKO BP. "In the banking sector a process of falling cost to income ratio is clearly visible in the institutions that have the largest market share. However, PKO BP strays from this trend," claims DM BZ WBK analyst Marcin Jabłczyński. Nevertheless, staff numbers at the bank will probably fall especially after the implementation of the central IT system planned for 2006 which will replace the regional accountancy departments with one central office. The bank's spokesman stated that for the time being there are no plans of mass lay-offs, but the number of employees is falling as some retire or leave for new jobs. In related news, Treasury Minister Jacek Socha announced that in PKO BP's privatization the tranche of shares for retail investors will be increased to 40%. (Parkiet, p. 6; Puls Biznesu, p. 10) E.B.