Banks profit could exceed forecasts - KNF

The banking’s sector profit could exceed previous estimations, according to the Financial Supervision Authority (KNF). “As banks adapt well to new conditions by reducing interest on select deposits, increasing margins of select credits, increasing F&C on select services or reducing operating costs, the actual result could turn out better than presented in the plans,” it said in a report. The overall result should not be affected by lower-than-expected financial results of commercial banks which dropped by 10 percent in some cases. At the same time, some banks are struggling with securing sufficient level of profitability. “The observed decline of income in some areas, as well as an increase of burdens and regulatory requirements, represents, however, an important challenge for some banks,” KNF noted. According to KNF data, at end-Q3, banks generated PLN 10.54 billion net profit, down by 7.5 percent y/y.