(2 195 HUF, -0,32%) is due to report its 2Q07 results on August 3. Net earnings are expected to come in at HUF 1,571m for 2Q07, down 9.5% q/q and 5.8% y/y. The expected quarter-on-quarter decline is attributable to continuing margin pressure, a rising cost base, due to network expansion and development of commercial banking activity, as well as higher net provisioning requirements, following a release in the first quarter. There is some indication that the net profit may be lifted by a low effective tax rate. With an outlook for declining earnings, we maintain our Sell rating on (2 195 HUF, -0,32%), seeing the bank as fundamentally overvalued. However, with the government’s privatisation plans still in focus, the sale of a 50% stake + 1 share to a strategic investor, we do not expect the results announcement to have much of a trading impact. Speculation that a buyout of minorities will follow the bank’s privatisation is expected to continue to support the stock price.