IPB expects to show a 1999 net profit of CZK 1 bil. (compared to our projection of CZK 730 mil.) For 2000, IPB expects a net profit of CZK 2.3 bil. (we project a net profit of CZK 1.4 bil.) As it is difficult to anticipate how much provisioning IPB might avoid via different transactions, projecting IPB’s financials is very much a speculative exercise. Nevertheless, for the last two years IPB failed to deliver the results it had planned. As such, we maintain our projections, as well as our recommendation: we rate IPB reduce, long-term hold.
(Martin Vojta)