Net earnings came in at PLN 78.9m for 1Q06, up 67.5% q/q and 31.2% y/y, above both the consensus estimate of PLN 76.2m (with a range of PLN 60m-95m, according to PAP) and our own estimate of PLN 75.3m. The growth rate has benefited from the first time consolidation of BRE Bank Hipoteczny, which was somewhat higher-than-anticipated, adding 8.5% to net interest income, 3.7% to operating costs, and 8.8% to the pre-tax profits in 1Q06. BRE Bank was ahead of our estimates on the core revenue lines of net interest income and net fee income but came in higher on operating costs as well, whilst net provisioning requirements were broadly in line. The results appear fairly solid, including only one obvious one-off gain of PLN 6.8m on the sale of a further 15% shares in subsidiary Novitus. We believe the reaction to the results should be positive but we see little in the bank’s performance to support analyst forecasts at the high end of the consensus range and maintain our Sell rating on the stock.