By Patryk Wasilewski 
 

WARSAW--Poland's BRE Bank S.A. (BRE.WA) reported Tuesday a 2.1% decline in first-quarter net profit to 324 million zlotys ($103 million), beating market expectations thanks to significantly lower provisions for non-performing loans.

Analysts expected the Commerzbank AG (CBK.XE) Polish unit to report a net profit of PLN286 million with provisions at PLN77 million; but BRE reported provisions of only PLN27.7 million.

The bank slightly missed net interest income expectations with a decline to PLN503.6 million, a result of significant central bank interest rate cuts over recent months. Net fee income came in at PLN197.5 million, also below expectations.

Write to Patryk Wasilewski at patryk.wasilewski@dowjones.com

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