BRE Bank beats Q3 expectations

The bank's net profit amounted to zł.202.49 million, compared with an average of zł.189 million, which was forecast by a Reuters poll of 11 analysts. Net profit rose 23 percent y/y, while net income increased by 36 percent y/y, to reach zł.364 million.

"Results are good and net interest income looks strong mainly due to loan growth and nice margins," Marcin Jabłczyński, a Deutsche Bank analyst told Reuters. "Provisions are somewhat higher than expected but that was probably due to some one-off items, so the market reaction should be moderately positive," he added.

The market responded positively to the news, sending the bank's stock up more than four percent to zł.175.

Poland's financial stocks have been hit hard recently and BRE Bank is no exception. On August 4, for example, the firm's stock was worth zł.391. Its shares have shed around 67 percent of their value since the start of the year.

BRE Bank is controlled by Germany's Commerzbank, which holds a 70 percent stake. The remaining 30 percent of the bank's shares are currently on the bourse. (Reuters)