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CEO of Poland's biggest bank submits surprise resignation

By Reuters

WARSAW (Reuters) -The chief executive of state-run Polish bank PKO BP has submitted his resignation, the lender said on Tuesday, with the surprise announcement sending its shares down as much as 8%.

Zbigniew Jagiello’s resignation from Poland’s biggest bank comes on the day the Supreme Court is expected to provide guidance on Swiss franc mortgages, which have become a major risk factor for Polish lenders, though the court guidance could be postponed because of a bomb threat on Tuesday.

Jagiello has been PKO BP chief executive since October 2009 despite the 2015 change in Poland’s ruling party that triggered staff changes at state-run companies.

A PKO statement said that Jagiello did not provide a reason for his resignation, which will take effect after the shareholder meeting planned for June 7.

A bank representative was not available for further comment and Reuters was unable to contact Jagiello for comment.

By 1057 GMT shares in PKO BP were down by 8.3%.

Analysts said that Jagiello’s resignation was a surprise for the markets.

“The chief executive had good ratings among investors, the bank was well run and the rights of minority shareholders were largely respected. The share price shows that this is negative information. Until the new CEO is known, the risk is definitely there,” said Ipopema Securities analyst Lukasz Janczak.

A source close to the situation said the resignation of Jagiello, a close ally of Prime Minister Mateusz Morawiecki, was a political decision reflecting ongoing clashes within the ruling coalition.

A spokeswoman for the ruling Law and Justice party was not immediately available to comment.

(Reporting by Agnieszka BarteczkoAdditional reporting by Karol BadohalEditing by David Goodman)