Net earnings came in at PLN 394.0m for 2Q07, down 15.0% q/q but up 21.6% y/y, above both our expectation of PLN 355.2 and consensus estimate of PLN 350m (with a range of PLN 340m-PLN 357m, according to PAP). 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). The results came higher-than-expected at the core revenue lines with (56 EUR, -0,55%) banking income 5.8% ahead of our expectations, but also helped by lower-than-expected net provisioning charge. Operating costs came in line with expectations. We expect some positive impact from the results today, however given the recent market speculations concerning shortcoming signing of the agreement between UniCredit and (39 USD, 0,21%), this story could be rather in focus of the market.