Bloomberg News

Santander’s Zachodni Posts Record Profit After Kredyt Takeover

October 24, 2013

Bank Zachodni WBK SA, Poland’s third-largest lender and a unit of Banco Santander SA (SAN) posted a record quarterly profit as revenue increased after a takeover of domestic competitor Kredyt Bank SA.

Net income rose 61 percent to 537.4 million zloty ($178 million) in the three months ended Sept. 30, the bank said in a regulatory statement today. That beat the 388 million-zloty mean estimate of three analysts in a Bloomberg survey. Its shares jumped as much as 4.8 percent to a record 391 zloty and were 3.5 percent higher at 386.15 zloty at 9:48 a.m. in Warsaw.

Zachodni, which completed a merger with Kredyt in January to become the country’s biggest bank after state-controlled PKO Bank Polski SA and UniCredit SpA (UCG)’s Bank Pekao SA, is benefiting from continued demand for retail loans in the European Union’s largest eastern economy. The bank expects its 2013 profit to exceed 1.43 billion zloty posted in 2012, Chief Executive Officer Mateusz Morawiecki said in April.

“That’s one of the best set of earnings posted by a Polish company for a long time as the bank seems to have seen the positive impact of post-merger cost synergies earlier than planned,” Marcin Jablczynski, an analyst at Deutsche Bank AG in Warsaw, said by phone. “If the trends continue, the market may need to increase its profit outlook for next year.”

Third-quarter net interest income, the difference between what the bank pays on deposits and what it charges for loans, soared 49 percent to 864.3 million zloty from 580.5 million zloty a year earlier. Fee income rose 28 percent to 445.2 million zloty.

Bad loan provisions rose to 159.2 million zloty from 120.5 million zloty a year earlier.

To contact the reporter on this story: Marta Waldoch in Warsaw at

To contact the editor responsible for this story: Frank Connelly at

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