ING Bank Sląski, made a profit in the fourth quarter of 2009. The bank set less money aside in provisions against bad loans than it had in Q4 2008, when it made a loss.

Net profit stood at zł.120.8 million, up from the zł.128.9 million loss recorded a year earlier.

The bank set aside zł.84.8 million in provisions for bad loans in Q4 2009, which compares favorably to the zł.116.5 cached in Q4 2008.

Net interest income rose by 22 percent while fees fell 10 percent. However, the lender also reserved zł.35 million for foreign-currency deals.

“The result is disappointing as unexpectedly Sląski continued to set aside money for currency options,” said Iza Rokicka, a Warsaw-based analyst at UniCredit SpA. “Its revenue was weaker than expected, although costs are looking better.”

The bank also recorded a gain on bonds of zł.58.3 million in Q4, which represented a significant improvement on the zł.284 million loss it suffered in Q4 2008 after government debt plummeted in value. (GP)

Source: Bloomberg