PKO BP's profits soar to new heights of over zl.500 mln

Poland's largest high street bank earned profits of zl.515.5 million during the first 6 months of 2001, 16% higher than forecasted. This result is far better than last year's (when the annual total was zl.631 million). The significantly lower return last year was a result of the bank's obligation to repay housing loans from the 1980s. PKO BP plans to maintain the forecasted net profit for 2001 at zl.1.06 billion. The bank earned most of its profit on banking services, achieving a 10.1% index of capital adequacy. The balance sheet total increased by 13.2% when the average inflation was 6.9%. These satisfying results bode well for the new proposals, accepted by KERM (Cabinet Economic Committee), to privatize the bank. According to the privatization plan, 30% of the shares will be sold publicly, securing Polish control over the bank, whereas the previous plan had involved a minor foreign investor. (Gazeta Wyborcza, July 28-29, p.27) M.M.