Citi's Polish arm posts nearly 40% profit drop as costs rise, but beats market forecast
C•Bank Handlowy's third-quarter net profit fell 39% to 288.3 million zlotys, beating analysts' 278 million zloty forecast. Costs from continuing operations rose 46% to 247.7 million zlotys.
1. Profit and revenue
Bank Handlowy reported net profit of 288.3 million zlotys ($74.0 million) for July-September, down 39% but above the 278 million zloty forecast in a market poll. Net interest income fell 7% to 479.7 million zlotys, while fee and commission income rose 10% to 116.4 million zlotys; both topped expectations.
2. Costs and operations
Operating, general and administrative costs from continuing operations, including depreciation, rose 46% to 247.7 million zlotys. The bank said discontinued operations were mainly affected by costs related to phasing out retail systems. Its results were supported by increased profit from continuing operations, higher trading gains and revaluations driven by customer activity in foreign exchange and positive derivatives valuations.
