PKO BP predicts 9% profit increase despite loss of aid

State-owned savings giant PKO Bank Polski (PKO BP) expects its net earnings to grow at a much slower pace this year after the state stopped providing aid under a rescue package. Unveiling its preliminary annual results yesterday, PKO BP said it had met its target of raising 2001 net profits by 70% to zl.1.1 billion, despite the economic slowdown and sluggish credit growth. "The state's financial aid has stopped and this year we will have to manage on our own. This year our net profit will likely rise by 9%," explained Chief Executive Henryka Pieronkiewicz. Apart from the state aid, which accounted for 40% of its zl.1.6 billion pre-tax profit in 2001, the bank, which is central Europe's largest lender, gained from lowering costs and boosting non-interest income growth. (Reuters)