BNP Paribas BP bank posts PLN 623 mln net profit in Q2, above expectations

The expectations of seven brokerage firms for second quarter net profit ranged from PLN 510 million (EUR 118.5 mln) to PLN 579 million (EUR 134.5 mln).

First quarter net profit rose 35 percent year on year and 5 percent quarter on quarter. After the first half of 2024, the bank's net profit rose to PLN 1.21 billion (EUR 281.1 mln) from PLN 947.6 million (EUR 220.2 mln) a year before.

The bank's net interest income amounted to PLN 1.2195 billion (EUR 283.3 mln) and was in line with analysts' expectations of PLN 1.251 billion (EUR 284.6 mln). Net interest income decreased 2 percent year on year and 13 percent quarter on quarter.

Net fee and commission income amounted to PLN 287.5 million (EUR 66.8 mln) and was 3 percent below market expectations of PLN 296.8 million (EUR 68.9 mln). Net fee and commission income decreased 7 percent year on year and 17 percent quarter on quarter.

In the second quarter, the balance of reserves was positive and amounted to PLN 8.3 million (EUR 1.9 mln) versus the negative balance expected by analysts amounting to minus PLN 17.9 million (EUR 4.2 mln).

The balance of reserves a year before was positive as well and amounted to PLN 26.4 million (EUR 6.1 mln), while in the first quarter it amounted to minus PLN 96 million (EUR 22.3 mln).

The result from provisions for legal risk related to foreign currency loans amounted to PLN 189.8 million (EUR 44.1 mln), in line with the bank's indications from July.

Costs (including depreciation and amortisation) amounted to PLN 803.4 million (EUR 186.7 mln), in line with the consensus of PLN 801.6 million (EUR 186.2 mln). Costs increased 11 percent year on year and decreased 13 percent quarter on quarter.

seb/ mik/