Poland's BNP Paribas BP Q3 profit rises 43%, beating expectations
GDANSK, Nov 8 (Reuters) -Poland's BNP Paribas BP BNP1.WA posted a higher-than-expected 43% jump in third-quarter net profit on Friday, supported by strong core revenues and lower provisions for legal risks associated with Swiss franc mortgages.
WHY IT'S IMPORTANT
Court rulings in favour of those who took out mortgages denominated in Swiss francs have dogged the Polish banks for years, significantly reducing their profits.
Courts are still handling tens of thousands of Swiss franc loan cases, with the government working on a standardised settlement format.
Without a resolution, the issue could continue to dampen the sector's profits for another 12 to 15 years, Polish Bank Association data showed.
BY THE NUMBERS
Net profit at BNP Paribas' BNPP.PA Polish unit was 635.5 million zlotys ($159.0 million) in the quarter, ahead of the 595 million seen in a company-compiled consensus.
Net interest income rose 16% on the year to 1.58 billion zlotys, supported by a one-off positive impact from lower number of participants subscribing to the country's "credit vacation" scheme.
Net fee and commission earnings were 311.2 million zlotys.
Legal provisions for Swiss franc denominated mortgages fell 25% to about 277 million zlotys.
CONTEXT
A strengthening Swiss franc and higher interest rates led to unexpectedly high repayments for hundreds of thousands of Poles who had taken Swiss franc mortgages at a time of low interest rates in the 2000s and early 2010s.
Many of these borrowers, backed by the Poland's anti-monopoly office and later EU courts, initiated legal actions against the banks.
($1 = 3.9978 zlotys)
Reporting by Mateusz Rabiega;
Editing by Milla Nisi
Related Assets
Latest News
Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.
All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.
Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.
