Poland's BNP Paribas BP tops fourth quarter profit estimates on lower costs

BNP Paribas Bank Polska SA

11/02/2026 06:18

GDANSK, Poland, Feb 11 (Reuters) - BNP Paribas Bank Polska BNP1.WA reported a 74% rise in its fourth-quarter profit on Wednesday, topping analysts' expectations, as lower costs related to legal risks on its Swiss franc mortgage portfolio boosted its bottom line.

The management board said it would propose paying out around 50% of its 2025 net profit as dividend.

CONTEXT

Like its domestic rivals, the Polish unit of France's BNP Paribas BNPP.PA remains exposed to legal costs from legacy Swiss franc mortgage loans, which became a burden for borrowers after a spike in the currency's value drove up repayments.

WHY IT'S IMPORTANT

Polish lenders are shifting strategies to defend profitability as the central bank's easing cycle erodes the high interest margins that drove the sector's record earnings in recent years.

With borrowing costs down to
4.00%
, banks are relying on higher lending volumes and cost controls to offset squeezed yields. Although BNP Paribas BP's loan volume rose 6.2% year-on-year, quarterly net interest income still fell.

BY THE NUMBERS

BNP Paribas Bank Polska's net profit rose to 887.0 million zlotys ($250.44 million) in the fourth quarter, exceeding analysts' 763-million-zloty average estimate in a company-compiled consensus.

Net interest income fell 4.7% year-on-year to 1.47 billion zlotys, in line with a consensus forecast, as central bank rate cuts squeezed yields on variable-rate loans.

Net fee and commission income was 317.3 million zlotys, versus market expectations of 315 million zlotys.

The Polish Bank Association in January had estimated that the sector's net profit would fall to around 30.8 billion zlotys in 2026, from more than 44 billion zlotys last year.

Last week, the bank's French parent reported a better-than-expected 28% jump in its fourth-quarter profit to 2.97 billion euros ($3.54 billion) pledging further cost cuts and raising its medium-term profitability targets.

($1 = 0.8397 euros)

($1 = 3.5417 zlotys)

 (Reporting by Rafal Nowak;
Editing by Milla Nissi-Prussak and Janane Venkatraman)

 ((RafalWojciech.Nowak@thomsonreuters.com; +48 58 769 66 63;))