With record profit PKO BP proceeds with privatization

The privatization plan for PKO BP, Poland’s largest bank, will be presented to the government before the summer holidays, while the issue of its initial public offering should take place before the end of the year, according to Aldona Kamela-Sowinska, deputy Treasury Minister, in remarks during a press conference yesterday. She also announced that a privatization adviser for the bank might be found by the end of Feb. The ministry plans to hold a 51% stake of PKO BP shares. Meanwhile, bank president Henryka Pieronkiewicz revealed that the bank recorded a net profit of zL.631 million last year, a dramatic threefold increase over 1999 profits mainly due to parliament’s passage of a new bill concerning old housing loans. The new regulation that came into force on Dec. 31 last year introduced a state guarantee for the credits. However the bank’s solvency ratio is only 6.23%, much below the legally required 8%. It is likely to increase to over 9% when the state adds zL.400 million to its capital. Additional PKO BP plans for this year include the launch of a new computer system, the search for new high-income customers, and a net profit goal of zl.1 billion. (Rzeczpospolita, p. B5, Puls Biznesu, p. 6) M.K.