Private equity operations to power BRE's earnings growth

BRE Bank CEO Wojciech Kostrzewa in an interview for Reuters on Friday outlined his firm's mid-term outlook, forecasting the bank's 2001 unconsolidated net profit would grow to zl.404 million against 2000 net results of zl.355 million. "This year our earnings growth will be powered in large degree by private equity operations. We'll have to wait for profits to be generated by our retail banking, which now needs hefty investments," he said. Kostrzewa added that BRE, which at the end of last year had assets of zl.16.3 billion, aimed to at least maintain its 14% net profit growth in 2002, while upping its return on equity (ROE) ratio to 15% in 2002 from this year's projected 14%, and 13% in 2000, with BRE's objective of reaching 19% ROE in 2006. By that time, the bank intends to generate its revenue equally from its key operations in corporate, investment and retail banking, as well as asset management, Kostrzewa said. Total investment over the 2000-2002 period in retail banking undertakings is planned to reach $50 million. (Reuters)