Erste Bank Polska narrowly beats profit view in first report under new brand (updated)

Erste Bank AG

30/04/2026 06:16

Adds additional information from paragraph 3, rewrites throughout

April 30 (Reuters) -
Erste Bank Polska EBP.WA reported an over 40% drop in its first-quarter profit on Thursday, slightly beating analysts' expectations even as costs, taxes and falling rates weighed on the bottom line.

The results are the first under the Erste Bank Polska brand, after Austria's Erste Group ERST.VI in January completed its acquisition of a 49% controlling stake from Spain's Banco Santander SAN.MC for about 6.8 billion euros ($7.9 billion).

Polish banks face dual pressure on profitability, as a sharp hike in corporate income tax for 2026 coincides with falling net interest income, the sector's main revenue source, due to the central bank's rate cuts.

The lender's net profit fell to 1.03 billion zlotys ($282 million) in the quarter, above a Reuters poll forecast of 1.01 billion but down from last year's 1.73 billion zlotys.

Its net interest income decreased by 3.6% from a year ago to 3.06 billion zlotys, pressured by a narrowing net interest margin after rate cuts.

Total costs surged 23.3% to 1.68 billion zlotys, driven by increased contributions to Poland's Bank Guarantee Fund and integration expenses, while the corporate income tax charge jumped nearly 49%.

The bank's profitability was further constrained by a nearly 109% surge in legal risk costs connected to its portfolio of foreign currency mortgage loans, which totalled 165.5 million zlotys.

($1 = 3.6547 zlotys)

($1 = 0.8578 euros)

(Reporting by Rafal Nowak in Gdansk, editing by Milla Nissi-Prussak)

((RafalWojciech.Nowak@thomsonreuters.com; +48 58 769 66 63;))