Komercni banka reported yesterday evening that its overall 2002-2004 restructuring costs will be lower than the previously estimated CZK 3.5 bil. As we had assumed costs of CZK 3.9 bil. for that period, it is encouraging news.
Also, KB CEO A. Juan said that Q4 2002 results should not be significantly worse than the Q3 2002 figures, which implies a 2002 net profit of close to CZK 8 bil. Moreover, he said that 2003 net profit is expected to exceed the 2002 level. This implies a better earnings outlook than we have projected.
See the enclosed .pdf file for our detailed comments on KB’s (and CEZ’s) 9M 2002 results.
Jan Hajek