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Poland's Bank Handlowy 2025 net profit falls amid interest rate cuts

BY Reuters | ECONOMIC | 02:44 AM EDT

GDANSK, Poland, March 17 (Reuters) - Poland's Bank Handlowy reported a 5% drop in its 2025 net profit to 1.67 billion zlotys ($449.4 million) on Tuesday, as falling interest rates weighed on its net interest income. The Polish arm of Citigroup (C) is continuing a strategic shift towards institutional banking after the lender sold its retail arm to VeloBank in May 2025.

* Full-year result was also weighed down by a one-off loss of about 380 million zlotys related to the consumer unit sale, recognised in Q2

* The sale will be completed "in the middle of the year" - CEO Elzbieta Czetwertynska

* Annual net fee and commission income was 430.9 million zlotys, up 7% from 2024

* Net interest income fell 5% to 2.10 billion zlotys

* Poland's central bank cut rates six times last year by a total of 200 basis points to 4.00% and has since lowered the main rate further to 3.75%

* Earlier in March, Poland's financial regulator said Bank Handlowy met the criteria for paying a dividend from up to 75% of its 2025 profit

($1 = 3.7158 zlotys) (Reporting by Alicja Surdy, editing by Milla Nissi-Prussak)

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