UPDATE 1-BZ WBK sees credit rebound after profit rise

* Q3 net profit up 7 pct to 264 mln zlotys

* Net interest income well ahead of forecasts

* Sees growth in corporate credit

WARSAW, Nov 12 (Reuters) - Polish bank BZ WBK BZWB.WA said on Thursday it was seeing signs of market recovery as it reported a surprise net profit rise of 7 percent in the third quarter due to better-than-expected net interest income.

"The annual pace of credit growth clearly fell in the third quarter, but signs of a market recovery are appearing," BZ WBK said in a presentation.

"Excluding currency effects, for the first time since March there was monthly growth in corporate credit in September and growth of loans to households continued."

The bank, controlled by Allied Irish Banks (ALBK.I), earned 264 million zlotys ($94.9 million) in the quarter compared to 190 million expected by analysts polled by Reuters.

Its net interest income fell 4 percent to 413 million, but came in well ahead of the expected 370 million.

BZ WBK and its local rivals have suffered from a drop in demand for corporate loans and tightening margins due to aggressive competition for deposits.

Shares in BZ WBK, whose recent advertising campaigns have featured comic actors Danny DeVito and John Cleese, have surged 53 percent this year compared to a 33-percent gain by Warsaw's banking index .BNKI. ($1=2.782 Zloty) (Reporting by Chris Borowski; Editing by Jon Loades-Carter)