ING Bank Slaski, the Polish subsidiary of the Dutch banking group ING, said its profit for the fourth quarter rose 4.8% as an increase in lending volumes helped mitigate pressure on margins resulting from central bank rate cuts.
Net profit for the quarter reached 1.37 billion zlotys ($387.7 million), topping a company-compiled consensus estimate of 1.21 billion zlotys. The bank reported a slight uptick in net interest income, which increased to 2.30 billion zlotys for the period.
Alongside interest income, the bank benefited from higher fee-based revenue. Net fee and commission income climbed 5.8% to 598 million zlotys, contributing to the overall quarterly outturn. The lender also reported expansion in its loan book, with the gross loan portfolio rising 8.2% to 181.1 billion zlotys over the year.
In terms of shareholder returns, ING Bank Slaski said it plans to distribute a dividend equivalent to 75% of its net profit for 2025. The announcement highlights the bank's approach to returning capital following the reported quarterly performance.
The unit's results arrive amid stronger signals from its Dutch parent. The parent company also surpassed quarterly profit expectations in January and has projected improved earnings for the next two years, citing anticipated robust growth in loans and fee income as the basis for its outlook.
Although the bank recorded growth in key revenue lines, the company noted that margin compression linked to central bank rate reductions remained a headwind. The increase in lending activity played a central role in offsetting that pressure during the quarter.
These results provide a snapshot of the lender's recent operating dynamics: modest expansion in interest income, a meaningful uptick in fee revenue, and an expanding loan book, paired with an announced dividend policy tied to future net profit.
Summary
ING Bank Slaski reported a 4.8% rise in Q4 net profit to 1.37 billion zlotys, outpacing a consensus estimate of 1.21 billion zlotys. Net interest income edged up to 2.30 billion zlotys while net fee and commission income increased 5.8% to 598 million zlotys. The lender's gross loans expanded 8.2% to 181.1 billion zlotys, and the bank announced plans to pay a dividend equal to 75% of 2025 net profit. The bank's parent also posted better-than-expected quarterly profit and is forecasting improved earnings over the next two years on the strength of loan and fee growth.
Key points
- Q4 net profit rose 4.8% to 1.37 billion zlotys, exceeding the consensus of 1.21 billion zlotys.
- Net interest income was 2.30 billion zlotys; net fee and commission income increased 5.8% to 598 million zlotys.
- Gross loan portfolio expanded 8.2% to 181.1 billion zlotys; bank plans a dividend equal to 75% of 2025 net profit.
Risks and uncertainties
- Margin pressure from central bank rate cuts is explicitly cited as a headwind impacting interest margins - this primarily affects banking sector profitability.
- Future earnings projections from the Dutch parent rely on continued strong loan and fee growth; shortfalls in those areas could affect forward-looking performance expectations in the banking sector.