PKO BP secures the group's profits

PKO Bank Polski's third-quarter net profit surged by a stronger-than-expected 42 percent thanks to hefty gains in its securities and loans portfolio.

A substantial boost in the third quarter came from a zł.204-million gain on its investment securities portfolio. In the same period last year, the bank had a loss of zł.32 million in this area.

The group's profits are largely thanks to the bank's strong operational figures, and to strong results in other fields. The consolidated Q3 report shows profits from interest slightly increased on 2004's figure of zł.2.62 billion to zł.2.68 billion a year later. And even though profits on commissions fell, from zł.1.142 billion to zł.896.2 million, operational profits soared, up from zł.1.492 billion in 2004 to zł.1.714 billion after three quarters of 2005.

"The lower profits on commissions are connected to the change in the law," said Jacek Rabcia, the director of strategy and planning at PKO BP. "Poland has adopted International Accounting Standards - the so-called MSR 39 - [according to which] commission gained on loans has to be divided by the duration of the loan in years and then divided by four."

The group's net profit increased by zł.174 million, reaching zł.1.373 billion. Profit gained on a single share increased from zł.1.20 in 2004 to 2005's zł.1.37. The State Treasury holds a 53.2-percent stake in PKO BP.