Polish watchdog sees bank profits up 30 pct in 2010

* Sector earnings seen up 30 pct

* Provisions seen down, interest and fee income up

* Assets rose 2 pct to 1.06 trillion zlotys

WARSAW, May 10 (BestGrowthStock) – Poland’s financial regulator KNF
expects local banks’ earnings to rebound by nearly a third this
year after a rough 2009 thanks to smaller provisions for bad
loans and higher interest income and charges for services.

Although they suffered along with the rest of the world’s
financial sector in last year’s global crisis, Poland’s lenders
managed to get through mostly unscathed with assets rising by 2
percent to 1.06 trillion zlotys ($368.2 billion).

Their combined earnings in 2009 fell by more than a third.

“As a consequence of improved conditions, the net result (of
the banking sector in 2010) will rise by about 30 percent,” KNF
said in a report on Monday.

The watchdog expects provisions to fall by 6 percent this
year, while it sees net interest and fee income growing 13 and
18 percent, respectively.

KNF added that lenders expect an improvement on the
interbanking market and a better financial situation in the
corporate sector, which could allow banks to reduce provisions
by more than earlier predicted.

Poland’s banking system is dominated by local units of
foreign lenders, such as UniCredit (CRDI.MI: ), Citigroup (C.N: ),
ING (ING.AS: ) and Commerzbank (CBKG.DE: ).

Warsaw’s banking index (.BNKI: ) jumped 6.1 percent on Monday
along with the rest of European markets after global
policymakers agreed a $1 trillion package to stabilise the euro.
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(Reporting by Chris Borowski; Editing by David Holmes)
($1=2.879 Zloty)

Polish watchdog sees bank profits up 30 pct in 2010