Komercni Banka informed yesterday that following the announcement of the loss of SocGen resulting from fraud and asset write-downs, its financial results will not be affected. KB has reiterated its capital policy, which is to remain targeting the Tier 1 ratio close to 10%. In addition KB has confirmed that its exposure to equity markets and its CDO exposure is limited, only USD 11m. Our view: We believe the news is positive for the bank, however while it was out yesterday during the session, we would expect it to have a neutral trading impact as of today.