Ceska sporitelna’s AGM yesterday approved a gross dividend of CZK 2 per share, but for preferred stock only (held by Czech municipalities, and which represents some 7% of CS shares). The first dividend for common stockholders may be paid out of the 2002 net profit, if the bank’s 2002 ROE target of 18% is met. In 2002, CS expects net profit of CZK 4 bil-5 bil. (we forecast CZK 4.8 bil.). CEO Jack Stack said that Ceska sporitelna expects a net profit (IAS) this year between CZK 1.3 bil. and CZK 1.4 bil., which largely corresponds to the planned 2001 ROE of 6%. Explicit ROE targets were not set for beyond 2002, but Deputy CEO Dusan Baran stated that the figure should grow over 2002’s. We find this encouraging, though we do not expect much impact on the stock.
(Jan Hájek)