According to Bloomberg Komercni Banka has announced that it will buy back shares following the recent drop in price. The bank’s AGM approved buying back up to 3.8m (or 10%) of shares with the price limit of CZK 4,500 but this is the first time the bank appears prepared to implement a buyback policy. We see this move as positive giving that the bank’s tier 1 ratio of 13.3% at the end of 1Q06. This also follows the payment of a dividend of CZK 250 per share (equating to a payout of 104% of the 2005 unconsolidated net profit). That demonstrates more active capital management that we have seen in the past. We reiterate our Buy rating with fair value of CZK 4,321.