Santander’s Zachodni Posts Record Profit on Units’ Revaluation

Bank Zachodni WBK SA, Poland’s third-largest lender and a unit of Banco Santander SA (SAN), said fourth-quarter profit surged to a record helped by a revaluation of insurance units’ stakes.

Net income rose 61 percent to 651.8 million zloty ($210 million), the Warsaw-based bank said in a regulatory statement today. That compares with the 673.3 million-zloty mean estimate of nine analysts in a Bloomberg survey.

Zachodni, which completed a merger with Kredyt Bank SA in January last year to become the country’s biggest lender after state-controlled PKO Bank Polski SA and UniCredit SpA (UCG)’s Bank Pekao SA, is benefiting from continued demand for retail loans in the European Union’s largest eastern economy. Additionally, its net income was boosted by 334.7 million zloty after it changed the value of its stakes in insurance units.

Fourth-quarter net interest income, the difference between what the bank pays on deposits and what it charges for loans, soared 46 percent to 861.8 million zloty from 591.8 million zloty a year earlier. Fee income rose 26 percent to 458.5 million zloty.

Bad loan provisions rose to 177.2 million zloty from 160.4 million zloty a year earlier.

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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