Citi's Polish arm posts nearly 40% profit drop as costs rise, but beats market forecast

Citigroup

05/11/2026 07:01

Nov 5 (Reuters) - Bank Handlowy BHW.WA reported a 39% decline in its third-quarter profit but beat market expectations on Thursday, as the Polish lender contends with higher costs, loss from discontinued operations and a hike in the corporate tax rate.
The result of Citigroup's C.N Polish arm was supported by increased profit from continuing operations, higher gains on trading financial instruments and revaluations driven by higher customer activity in the foreign exchange market and positive valuations of derivatives.
July-September net profit was 288.3 million zlotys ($74.0 million), versus analysts' forecast of 278 million in a Reuters poll
Net interest income fell 7% to 479.7 million zlotys due to lower interest rates and returns on investment securities, but topped expectations
Fee and commission income grew 10% to 116.4 million zlotys, also above estimates, thanks to a rise in brokerage activity and custody services
Operating, general and administrative costs from continuing operations, including depreciation, rose 46% to 247.7 million zlotys
The bank, which has made a strategic shift towards institutional banking, said the result from discontinued operations was mainly affected by costs related to the phase-out of retail systems
($1 = 3.8937 zlotys)

(Reporting by Stefan Gardawski in Gdansk, editing by Milla Nissi-Prussak)
((Stefan.Gardawski@thomsonreuters.com;))