According to an interview in PAP with Robert Dzialak, deputy CEO of PKO BP, the management will focus on the revenues but wants to keep cista under control. The deputy CEO has stated that despite employment cuts (expected at 1,500 this year) the overhead costs may increase due to the motivation program. Dzialak added that PKO BP is currently implementing new motivation system, which will take into account all bank’s employees. The system will be partly implemented this year and is expected to be fully operational in 2008.
In our opinion the motivation system was required as in most of the banks such a system has prove to be effective. Depending on the actual outcome, we believe the news is positive, as it should increase the effectiveness of the bank’s sales force. We do not expect the news to have any major impact on the stock price today.