PKO Second-Quarter Profit Beats Estimates as Fee Income Rebounds

PKO Bank Polski SA, Poland’s biggest lender, posted second-quarter profit that beat estimates as fee income rebounded from earlier in the year.

PKO’s net income in the second quarter stood at 702.9 million zloty ($184 million), down from 855.6 million zloty in the year-earlier period. That beat the 648.8 million-zloty estimate of nine analysts surveyed by Bloomberg.

Banks are bracing for higher costs as the industry becomes a political pawn in the run-up to the October parliamentary election. The opposition and government are seeking to win favor with voters by easing conditions for borrowers and imposing levies on lenders. A bill amendment passed last week could see banks’ burden on financial aid for Swiss-franc mortgages more than double from the 9 billion zloty originally estimated.

PKO beat the average estimate, mainly “driven by a stronger than expected fee and commission line,” according to BESI Novo Banco analyst Kamil Stolarski.

Net fees and commissions declined 3.3 percent from a year earlier while they rose 12 percent from the first quarter. The drop was slower than in net interest income, which fell 13 percent from 2014.

PKO rose as much as 2.2 percent, most since July 29, and traded 1.1 percent higher at 11:33 a.m. in Warsaw.

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