PKO BP is due to report 1Q06 results on May 12. We expect the bank to report net earnings of PLN 451.7m up 8.6% y/y and 17.0% q/q. This is higher than consensus estimates of PLN 443.5m (with a range of PLN 407-483m, according to PAP). We expect the results to be driven by fee and commission income, resulting mainly from a pricing change (widely expected by the market) and good performance in the credit cards business in 1Q06. PKO/CS TFI, mutual fund company, has been underperforming the market, growing by 17.9% q/q versus market growth of 18.7% in 1Q06. The market share of PKO/CS TFI in AUM decreased slightly from 8.5% to 8.4% in 1Q06. Total costs are expected to come at PLN 1,101.8 up 12.8% y/y but down 5.8% q/q. The year-on-year development of costs is driven mainly by growth at the property development subsidiaries, Wilanow Investments and Fort Mokotow. Net provisioning is expected to come in at PLN 70.1m, after an unexpected net release last quarter. This equates to some 30bp (annualised) over average assets.