Post Office bank opts for independant expansion instead of PKO

Bank Pocztowy has announced plans to restructure and develop its business on its own, with capital most likely provided by current owners Prokom and Poczta Polska (the Polish Post Office – PP). “Ideally we want to double our base capital, but a more realistic figure will be expansion by half or slightly more – i.e. by around ZL50-70m,” says company chairman Andrzej Szukalski. If Prokom and PP are not able to provide these funds, then the company will take steps to secure a third investor. “We absolutely must work on productivity,” continues Szukalski, “We employ more than 1,500 people at a time when the company has bad results, and poorly manages its credit portfolio and its relationship with Poczta Polska.” Earlier this year Bank Pocztowy announced plans to merge with PKO BP – but Szukalski says these plans have been abandoned in favour of “closer co-operation between the two”. Analysts asked approved of the decision. pgjh 9 September issue of Puls Biznesu, p. 1