UPDATE: BNP Paribas BP lender posts PLN 741.4 mln net profit in Q1 2025, above expectations

The bank said the high quarterly net profit was due to improved income and low CHF credit and legal risk costs.

The bank's net interest income amounted to PLN 1,494.3 million (EUR 351.46 mln), in line with analysts' expectations of PLN 1,504 million (EUR 353.74 mln). The interest result rose 7 percent year on year while falling 3 percent quarter on quarter.

The interest margin was 3.6 percent, up 12 basis points year on year and down 11 basis points in quarterly terms.

Net fee and commission income amounted to PLN 327.5 million (EUR 77 mln), also in line with market expectations. Net commission income fell 2 percent year on year and 1 percent quarter on quarter. The bank said it recorded very good results in the areas of cards and asset management and brokerage operations.

The lower net fee and commission income in annual terms was mainly due to lower credit and guarantee commissions and for advisory services in M&A processes (other commissions) and was partly offset by an increase in commissions in the cards area.

In the first quarter of 2025, the balance of provisions amounted to PLN 27.2 million (EUR 6.4 mln), i.e. the bank made 55 percent lower provisions than expected. Provisions fell 72 percent year on year and 54 percent quarter on quarter.

The cost of credit risk fell to 0.12 percent from 0.44 percent in the prior year period.

BNP Paribas BP explained that the lower cost of risk on the corporate loan portfolio compared to earlier periods is a consequence of significant recoveries from exposures classified in so-called phase 3.

The result from provisions for legal risk related to foreign currency loans amounted to PLN 64.9 million (EUR 15.3 mln), below the market expectations of PLN 82 million (EUR 19.3 mln).

Costs (including depreciation and amortisation) amounted to PLN 976.3 million (EUR 229.63 mln), in line with the consensus. Costs increased 6 percent year on year and 16 percent quarter on quarter.

The lender said that the higher quarterly level of general administrative expenses was related to the booking of the annual Poland's banking guarantee fund BFG fee. Without its inclusion, costs would have been lower compared to the fourth quarter of 2024. The total BFG fee recognised in operating expenses for the first quarter amounted to PLN 166.4 million (EUR 39.14 mln).

Gross loans amounted to PLN 89.6 billion (EUR 21.1 bln), up by 1 percent year on year and by 1 percent quarter on quarter.

Customer deposits, on the other hand, amounted to PLN 126.6 billion (EUR 29.8 bln), growing 1.8 percent year on year and falling 3 percent quarter on quarter. The bank said that in the first quarter of 2025, there was a further increase in the value of funds placed in BNP Paribas Group investment funds (up 46 percent year on year and by 8.9 percent quarter on quarter).

The lender pointed out that corporate loans drove growth in the loan portfolio (up 3.8 percent quarter on quarter) and that the bank recorded further quarterly growth in mortgage and cash loan sales.

Mortgage sales amounted to PLN 600 million (EUR 141.1 mln), up 559 percent year on year and 23 percent quarter on quarter. Cash loans reached PLN 1 billion (EUR 235.2 mln), an increase of 7 percent year on year and 12 percent in quarterly terms.

Among its priorities, BNP Paribas BP cited capital-efficient loan growth.

The total capital ratio is 16.19 percent.

seb/ ao/