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WARSAW, Oct 31 (Reuters) - Polish bank BRE Bank reported third-quarter net profit almost unchanged year-on-year and just a notch above market expectations, as improved deposit margins and rising retail loans helped to make up for record low interest rates.
The Polish arm of Germany’s Commerzbank reported profit of 279 million zlotys ($92 million) compared to 275 million expected by analysts polled by Reuters.
Poland’s central bank nearly halved interest rates in an easing cycle that ended in July, taking a large bite out of the income local banks made on the difference between what they charge for loans and rates they pay on customers’ deposits.
BRE and other Polish banks have relied on retail loans, which have high margins to compensate. They have also been slowly reducing rates they offer for deposits. ($1 = 3.0281 Polish zlotys) (Reporting by Adrian Krajewski. Editing by Jane Merriman)