ING's Polish unit beats profit estimates on lower costs (updated)

ING Bank Slaski SA

06/02/2025 06:53

(Recasts headline and first paragraph, adds background
information from paragraph 3)
       GDANSK, Feb 6 (Reuters) - ING Bank Slaski  INGP.WA , the
Polish unit of Dutch bank ING Groep  INGA.AS , reported a
marginal on-year increase in its fourth-quarter net profit on
Thursday, supported by lower-than-expected costs of risk.
    The lender's net profit rose around 3% to 1.31 billion
zlotys ($323.6 million) in the final quarter of 2024, exceeding
a company-compiled consensus estimate of 1.08 billion zlotys.
        In the three months ended December 31, 2024, the Polish
bank's allowances for expected credit losses and costs of risk
related to foreign currency loans fell around 3% to 173 million
zlotys, below the company-compiled consensus of 373 million
zlotys.
    Net interest income, a key metric reflecting the difference
between earnings on loans and the cost of deposits, rose around
4% to 2.26 billion zlotys, slightly short of the consensus
forecast of 2.28 billion.
    The bank's net fees and commission income grew 1.6% on-year
to 565 million zlotys, below analysts' expectations of 575
million.
    By end-December, the lender's return on equity, a key
measure of profitability, dropped to 26.7% from 33.9% a year
ago.
    Meanwhile, ING Bank Slaski said it will pay about 75% of its
2024 standalone net profit as dividend once it gets a
recommendation from Poland's financial authority KNF on the
matter.
    Earlier in the day, ING Groep, the largest Dutch bank by
assets, posted lower-than-expected fourth-quarter profit, hurt
by higher operating expenses and loan loss provisions.
        
  
($1 = 4.0477 zlotys)

 (Reporting by Rafal W. Nowak; Editing by Himani Sarkar and
Sumana Nandy)
 ((RafalWojciech.Nowak@thomsonreuters.com; +48 58 769 66 63;))