(Ondřej Daťka) Ceska sporitelna’s H1 2001 IAS consolidated net profit of CZK 0.80 bil., reported yesterday, was moderately below the market consensus (CZK 0.84 bil.) but above our expectation of CZK 0.72 bil. Both revenue and operating income were better than expected, making the overall results positive (though the stock was pulled down by other blue chips yesterday). The one negative piece of news was that client-loans growth slowed down to 3.5% (June vs. December). The H1 2001 ROE of 6.9% corresponds to the management’s target of 6% ROE for full-year 2001, and confirms that one should not expect any bottom-line profit surprises this year. CS yesterday reiterated its 2001 profit forecast of CZK 1.4 bil. (vs. our forecast of CZK 1.48 bil.). On the loan-portfolio front, CS used its option to reclassify CZK 7.1 bil. of standard and watch assets, and transfer them to the ring-fenced portfolio guaranteed by the state.