Santander’s Zachodni Posts Record Quarterly Profit After Merger

Bank Zachodni WBK SA, Poland’s third-largest lender and a unit of Banco Santander SA (SAN), posted a record quarterly profit on higher loan revenue.

Net income rose 10 percent to 419.5 million zloty ($132 million) in April-June from a year earlier, the bank said in a regulatory statement today. That beat the 355.3 million-zloty mean estimate of six analysts surveyed by Bloomberg.

Second-quarter net interest income, the difference between what the bank pays on deposits and what it charges for loans, soared 39 percent to 797.6 million zloty from 571.8 million zloty a year earlier after the lender adjusted its pricing on deposits to offset falling interest rates in Poland this year. Fee income rose 31 percent to 445.6 million zloty.

Zachodni shares jumped 2.9 percent to 313 zloty at 10:08 a.m. in Warsaw, heading for the highest close in six years.

The bank, which completed a merger with Santander’s Warsaw-based unit Kredyt Bank SA this year, expects its 2013 profit to exceed 1.43 billion zloty posted in 2012, Chief Executive Officer Mateusz Morawiecki said in April.

To contact the reporter on this story: Marta Waldoch in Warsaw at mwaldoch@bloomberg.net

To contact the editor responsible for this story: Frank Connelly at fconnelly@bloomberg.net

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