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Polish banks Q1 net profit down 11 pct on the year - regulator
May 15, 2017 / 8:34 AM / 7 months ago

Polish banks Q1 net profit down 11 pct on the year - regulator

WARSAW, May 15 (Reuters) - Polish banks’ aggregated net profit fell 11.4 percent in the first quarter of 2017 year-on-year to 2.836 billion zlotys ($736.91 million), according to data released by the financial market regulator KNF on Monday.

Analysts have said that lenders’ earnings would be hit by having to pay part of the fee to the Bank Guarantee Fund in the first quarter, as well as a lack of significant positive one-off items, which has lifted their results a year earlier.

KNF also said that lenders’ net interest income rose by 10 percent in the first quarter, to 10.125 billion zlotys, while provisions for bad loans increased by 5 percent to 1.612 billion zloty.

Polish banks’ share prices rose by 21 percent already this year as the ruling Law and Justice party (PiS) abandoned its plan to convert toxic Swiss franc mortgages into zlotys at the rate they were taken at the banks expense.

Their stocks were also boosted by global markets rally after Donald Trump’s victory in presidential election in the United States, seen as a positive news for the banking sector.

Most listed banks have already released their first quarter results, but Poland’s biggest, state-controlled lender, PKO BP is expected to publish its data on May 22.

Its smaller peer Getin Noble Bank which holds a huge portfolio of Swiss franc mortgages is to release its results on Monday. ($1 = 3.8485 zlotys) (Reporting by Marcin Goclowski, editing by Louise Heavens)

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