PKO Bank Polski SA, Poland’s biggest lender, headed for a two-week high after posting the biggest first-half profit in eight years.
The shares rose as much as 1.2 percent to 32.93 zloty before trading 0.8 percent stronger at 32.8 zloty by 9:50 a.m. in Warsaw, the highest on a closing basis since July 19.
Net income increased to 1.95 billion zloty ($590 million) from 1.84 billion zloty a year earlier, PKO said in a regulatory statement today. That compares with the 1.93 billion-zloty mean estimate of eight analysts surveyed by Bloomberg. First-half profit is the highest since the six months to June 2004, according to data compiled by Bloomberg.
“PKO is our favorite Polish bank,” Tomasz Walkowicz, a London-based analyst at UBS AG, wrote in a research note today. “Fundamentals remain strong and valuation looks very attractive versus peers.”
PKO trades at 10.5 times estimated earnings, compared with 13.4 for Bank Pekao SA (PEO), the country’s second-largest lender, according to data compiled by Bloomberg.
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