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~~~~~((#))003005000f-Banking, Savings & Credits

~~~~~((#))016006000b-Dividends & Payouts

~~~~~((#))016001000f-Company News

Czech Komercni sees higher but limited dividend

PRAGUE: Komercni Banka, the third largest Czech bank and a unit of France's Societe Generale, said on Monday it would raise its dividend on 2002 profits from the 11.5 crowns ($0.388) paid in the previous year.

But Chief Financial Officer Philippe Rucheton told a news conference that global uncertainty would prevent a significant increase.

"It will be more than in the previous year, but part of the 2002 result is not sustainable. We have a lot of uncertainty over the development of the global economy," he said.

Komercni has exposure to foreign derivatives, mostly linked to US corporate debt.

Rucheton declined to specify the dividend proposal but said he would not propose to pay out more than 40 percent of the bank's net profit for the last year.

Komercni said that an audit confirmed preliminary 2002 results. It posted a net profit of 8.76 billion crowns ($295.5 million) last year, jumping from 2.53 billion crowns a year ago.

The bank's shares were down 1.5 percent at 1,965 crowns, compared with a 0.33 percent decline in the market. The stock shot up last year and in early 2003 but has cooled off as Komercni's outlook for profit growth has worsened.

Analysts have said profit growth will be limited and, therefore, they expected the bank to pay high dividends to distribute cash, for which it may not find good returns.

But Rucheton said Komercni would not try keep the share price up at the cost of paying overly generous dividends.

"The share price of over 2,000 crowns is a very high price. The basic strategy is not to try to boost the share price (by high dividends)," Rucheton told Reuters.

The bank plans an annual general meeting in mid-year.-Reuters