Shares in Polish bank PKO rise on buyback media report: analysts

The logo of the PKO BP is seen on the bank's headquarters in Warsaw, Poland, May 6, 2016. REUTERS/Kacper Pempel/File Photo

WARSAW (Reuters) - Shares in state-run PKO BP PKO.WA rose 1.9% on Monday on a media report which said Poland's biggest lender was considering a share buyback, analysts said.

“PKO has more than 13 billion zloty of the excess capital and after the latest changes in its charter it may consider buyback and cancellation of own shares,” state-run news agency PAP quoted an unnamed source as saying on Monday.

PKO BP shares rose 1.9%. The stock is up 7.3% this year, giving it a value of 26.9 billion zlotys ($7.17 billion).

“This news is definitely behind today’s price rise, but one has to remember that such buybacks need regulator KNF approval first,” said Kamil Stolarski, an analyst at Santander Bank Polska.

“PKO BP is a public company... Therefore, when asked whether the bank is considering buying back its own shares, the company cannot answer either in the affirmative or in the negative. All activities in this area must be approved by the KNF,” PKO said.

($1 = 3.7514 zlotys)

Reporting by Marcin Goclowski; editing by Jason Neely