AIB's Polish subsidiary Bank Zachodni WBK (BZWBK) has reported a 34 per cent increase in third-quarter pretax profit thanks to a bigger loan book, growth in deposits and higher fees from its asset management business.
The bank, in which AIB has a 70.5 per cent stake, recorded pretax profit of 343.5 million zloty (€94.8 million) in the three months to the end of September, up from 255.8 million zloty in the same period last year. For the nine months to the end of September pretax profit was 1.1 billion zloty, an increase of 36 per cent.
Analysts said the results were more or less in line with expectations, with Davy saying the company is on track to produce earnings growth of 31 per cent for the full year. The broker did warn, however, that the current turmoil in the equity markets may weigh on its asset management business.
Total assets increased by 17 per cent to 38.4 billion zloty in the quarter, while the bank's liabilities rose 18 per cent to 34 billion zloty. Net interest income, the difference between the money paid out on deposits and earnings on the loans, rose 28 per cent, to 329 million zloty, and fees and commissions increased 35 per cent to 388 million zloty.
BZWBK is spending as much as 400 million zloty adding new outlets, upgrading its franchise network and increasing the number of cash machines in a bid to increase its 17 per cent share of the Polish banking market.
Overall Davy expects the bank to contribute about 11 per cent to AIB's pretax profit this year.
