Erste Bank Polska's second-quarter profit beats expectations (updated)

Erste Bank Polska SA

30/07/2026 07:40

Adds context on Erste acquisition in paragraph 3 and Polish rate cuts in paragraphs 5-6, details on results in paragraphs 4 and 7-9
July 30 (Reuters) - Poland's Erste Bank Polska EBP.WA, formerly Santander Bank Polska, reported a second-quarter net profit that beat market expectations on Thursday, as a rise in fee income and lower risk costs offset net interest income pressure from lower central bank rates.
The bank said its net profit grew 15% to 1.17 billion zlotys ($310.1 million), against an average forecast of 1.06 billion zlotys from analysts polled by Reuters.
It has been half a year since Erste Bank ERST.VI acquired and rebranded the Polish lender, in a deal aimed at strengthening the Austrian banking group's presence in Central and Eastern Europe.
Erste BP's net interest income fell 2.4% from a year ago, while fee and commission income grew 3%.
Poland's central bank has cut interest rates several times since May 2025, bringing the benchmark down by two percentage points to 3.75% and squeezing net interest margins across the banking sector.
Banks are betting on growing loan volumes and fee income to cushion the hit.
Erste BP's total loan portfolio grew 4.6% in the first half of the year to 176.8 billion zlotys, driven mainly by an 8% increase in loans to businesses.
The bank booked 526.3 million zlotys in legal provisions for Swiss-franc mortgage disputes in the second quarter, much lower than the 738.8 million zlotys booked a year ago.
It also set aside 71.2 million zlotys tied to consumer loans after an April 23 ruling by the European Court of Justice barred lenders from charging interest on some loan costs.
($1 = 3.7733 zlotys)

(Reporting by Alicja Surdy, editing by Milla Nissi-Prussak)
((AlicjaEwa.Surdy2@thomsonreuters.com;))