News Parkiet

Mutual funds

Schroders, SG to start selling mutual funds

in Poland

Two international asset management groups say they plan to start selling Luxembourg-registered mutual funds in Poland after the country joins the European Union. French Societe Generale says it is already negotiating sale of its mutual fund products with several unnamed Polish banks. SG says it will start by offering an umbrella-type fund utilizing 48 different investment strategies.

UK-based Schroders says it plans to offer ?full range of funds, including both fixed income and equities?. Later on, Schroders wants to start selling fund of funds-type products, available to both institutional and retail investors.

Other potential entrants include Nordea, Citibank and Commerzbank, which already have extensive banking operations in Poland.

Politics

Hausner to present public spending

reform plan

Polish Minister of the Economy Jerzy Hausner (left) will present his public spending reform package to opposition deputies today. Hausner, who doubles as Poland?s deputy prime minister wants to save as much as 2 billion zloty per year by changing the existing social security system for farmers and their dependents. Other key elements of SLD-backed plan include higher social security premiums for some small business owners, as well as raising the retirement age.

The government also wants to go after recipients of disability benefits who cheat on their applications to receive their monthly payments.

Finances

BillBird expanding retail network

Privately held utility bill payment processing company Billbird S.A. says it will post its first ever operating profit this year. Part of BRE Bank group, Billbird operates about 1000 electronic payment terminals at gas stations and grocery stores across Poland. It wants to quadruple its POS network once it finds PLN 9 million it needs to grow its business.

Billbird was founded during the Internet bubble four years ago by former employees of ComArch software house. It started as an Internet payment processing company, but was forced to switch to more conventional business when it found out the market for electronic payments is much smaller than expected.

Soccer

ITI closer to Legia takeover

ITI Group, a Luxembourg-registered holding of Polish media companies has received the go-ahead of the local anti-trust authorities to purchase controlling stake in Legia Warszawa, Warsaw?s main soccer club. ITI says it wants to buy 80 percent stake in Legia despite the club?s precarious financial situation to complement its TV programming offer.

ITI company is still waiting for a decision by Warsaw authorities on the renovation of Legia?s downtown soccer field before it closes the deal.

Petrochemicals

PKN Orlen raises dividend payment

PKN Orlen oil refinery posted record net earnings of 1.04 billion zloty in 2003 thanks to higher oil prices and completion of the first stage of its cost-cutting program. Group sales were up over 40 percent to PLN 24 billion, or 6.15 billion dollars due to the acquisition of some 500 gas stations in Germany. Its refining margins rose from 1.02 to 3.06 US dollars per barrel.

PKN announced it would more than triple its dividends to 0.46 zloty per share.

Orlen, which controls about 70 percent of Poland?s refining capacity also said it would cut about 1600 jobs this year, mainly through sale of various subsidiaries, voluntary departures and early retirements.

Banking & finances

BPH?s fourth quarter rises

on lower provisions

Bank BPH, Poland?s third largest lender said yesterday its net 4Q income rose to 52 million zloty ($13.5 million) as the company expanded its mortgage loan portfolio and cut provisions for bad loans. The bank, which is controlled by Bank Austria AG said full-year earnings were over four times higher, at PLN 323 mBPH?s Chief Executive Officer Józef Wancer said the bank expects higher earnings this year. Wancer added the bank is on target to raise its ROE to 20 percent by 2006 compared with last year?s 6.3 percent.