Bank BPH is due to report 2Q07 results on August 3. We expect the bank to report net earnings of PLN 355.2m for 2Q07, up 9.6% y/y but down 23.4% q/q. There are no consensus estimates available. Though 1Q07 results were boosted by a PLN 178m pre-tax capital gain on the divestment of a 10% stake in CU PTE pension fund (required by law). Overall, we expect the development of the underlying business to be relatively stronger, in comparison with last quarter, but still affected by preparations for the merger of Bank BPH-280 with Bank Pekao. We believe that Bank BPH is a good entry point into new Bank Pekao and expect a takeover premium from a forthcoming acquisition of Bank BPH-200 assets.