Bulbank reported another high performance for the first half of year 2003, announcing that Luigi Lovaglio, Deputy Chairman of Management Board and COO, leaves Bulgaria to join Pekao SA, the leading Polish bank as Vice-president and COO in September 2003. Mr. Lovaglio was the main driver of changes in Bulbank, channeling UniCredito experience and advanced banking practice.

The positive effect of all changes is once again confirmed by the first half results of the bank for 2003, reporting a net profit of BGN 73.4 mn under NAS, an increase of 48 % compared to the same period of previous year. The net profit under IAS is BGN 45.2 mn, up 21% y/y.

The main drivers of these results are commercial banking revenue growth spurred by high and fast growth of loan portfolio, up 82% y/y. Operating costs mark a slight increase of 2.5 %, thus reaching an excellent 38% cost/income and 23% growth in operating income.

In saying good-bye to the journalists Lovaglio commented the excellent achievements reported by Bulbank over the last three years in terms of customer orientation, product innovation and people professional development.

"Bulbank today counts on a strong high-performance oriented and highly skilled team of managers. Lovaglio continued, "We are close to complete the roll-out of the new IT system and to launch new products as leasing, life insurance and credit cards."

"Bulbank, following its commitment to the development of Bulgarian economy, in less than three years, doubled its direct investments in the Bulgarian financial market and operated actively for attracting large-scale foreign direct investments in Bulgaria. All achievements are marked through high ethical behaviour and corporate social responsibility, also proven by a programme for support of child health care projects recently approved by UniCredito", Lovaglio said.

As a token of appreciation of his professional and personal contribution, Luigi Lovaglio is the first banker who received a special award from the President Mr. Georgi Parvanov, considered as a great honour and recognition by UniCredito and Bulbank.

Luigi Lovaglio leaves Bulbank to join Pekao SA. Alessandro Decio will undertake the position of Deputy Chairman of MB and COO from 1 September 2003.

After having successfully running Bulbank for three years, Luigi Lovaglio, currently Deputy Chairman of the Management Board, Chief Operating Officer (COO) and Executive Director of the bank, will take the position of Deputy President and COO of Bank Pekao SA, the leading bank in Poland with more than 800 branches and 3 million customers, from September 2003.

His position as Deputy Chairman of the Management Board and COO will be undertaken by Alessandro Decio, 37, an economics graduate with a prior experience in EBRD. Alessandro Decio is one of the founders of the New Europe Division of UniCredito Italiano. His current position is Deputy Chairman and COO of Zagrebacka Banka, the largest bank in Croatia. He is not a newcomer for Bulbank. From October 2000 till end of 2002 Mr Decio was member of the Supervisory Board of the bank.

These appointments are a result of the management changes in UniCredito Italiano, by which Roberto Nicastro, former Head of New Europe Division becomes CEO of UniCredit Banca in Italy and is replaced by Paolo Fiorentino, currently Deputy President and COO of Bank Pekao SA in Poland.