Polish bank PKO third-quarter profit up 17 percent, beats forecast – Reuters
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WARSAW (Reuters) – Poland’s largest lender, PKO BP PKO.WA, reported a 17-percent rise in third-quarter net profit, as a growing economy boosted demand for banking services and products.
The state-run bank reported a net profit of 902 million zlotys (189.41 million pounds), above analysts’ expectations of 870 million zlotys.
The lender is benefiting from improving conditions in the Polish economy, despite record-low interest rates.
“The result is better than expected mainly thanks to better core revenues. The net fee and commission result improved, as well as net interest income. … The bank uses its market position well,” Andrzej Powierza, an analyst with Citigroup said.
“The bank improved its risk management over last years, this is probably why the result on provisions is good in the third quarter,” he added, referring to the 7 percent fall in provisions for bad loans.
Shares in PKO rose 1.6 percent, while other banks were also gaining. Since the beginning of the year, its market valuation rose almost 38 percent to $13.3 billion, outperforming the sector .BNKI.
Reporting by Marcin Goclowski; Editing by Agnieszka Barteczko
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