Citigroup's Handlowy seeks stronger position

WARSAW, March 31 (Reuters) - Citigroup's Polish unit Handlowy BAHA.WA wants to be the fourth strongest bank in retail services by 2010, its chief executive said on Monday, announcing a new three-year strategy for the company.

"We want to improve the bank's position in the retail category, so that we move from the seventh to fourth position (by 2010)," Chief Executive Slawomir Sikora told a news conference.

"We want to gain 1 million new retail clients, double the current number, in the next three years."

He also said the bank planned to improve its return-on-equity (ROE) ratio so that it topped 20 percent by 2010. In 2007, the bank's ROE was 17 percent.

Sikora added he aimed to decrease the bank's cost-to-income ratio to below 50 percent by 2010 from last year's 60 percent and restructure jobs.

"The bank's goals in the new three-year strategy are better than expected. Market reaction should be positive," said Marta Jezewska, analyst at BRE Bank's investment arm.

Handlowy shares closed on Monday at 88.70 zlotys per share after falling 0.2 percent on the day, underperforming the large cap WIG 20 .WIG20 index which rose 3.25 percent. (Reporting by Piotr Bujnicki, writing by Karolina Slowikowska; Editing by Paul Bolding)