According to an interview with Ceska Sporitelna’s CEO Gernot Mittendorfer in Czech daily Hospodarske Noviny, earnings are expected to grow at a pace of 15-20% in both 2007 and 2008 while mortgage loans in 2008 are expected to slow down to 20-30% y/y, mainly due to the expectedly weaker 1Q08. In addition, Ceska Sporitelna plans to open 20 new branches to reach a total of 656 units. Our view: We believe the news is neutral for Erste Bank as the CEO simply reiterated previously stated targets. The news should have a neutral trading impact on the stock price today.