UPDATE 2-Komercni 9-mth profit lags fcast, shares drop

(Adds analyst comment)

By Marek Petrus

PRAGUE, Nov 9 (Reuters) - Komercni Banka <BKOMsp.PR>, the third largest Czech bank by total assets, posted a lower than expected 5 percent rise in nine-month net profits on Thursday, triggering a drop in its shares.

The Czech unit of France's Societe Generale <SOGN.PA> made a net profit of 6.62 billion crowns ($302.1 million) in January through September, up from 6.31 billion a year ago but below the average forecast of 6.97 billion in a Reuters poll.

Shares in the only listed Czech lender reversed a small early gain to trade 2.1 percent lower at 3,430 crowns by 0948 GMT, underperforming a 0.39 percent rise in the Prague market's blue chip PX index <.PX>.

"The market was set up more for a positive surprise, and therefore we expect a slight further drop in the share price," said Atlantik FT in a commentary on the results.

Robust lending growth drove net interest income up 10.1 percent to 11.08 billion crowns in the first nine months, maintaining the momentum seen earlier this year and nearly matching the analyst forecast of 11.09 billion.

But net fees and commissions showed an unexpected 0.5 percent fall to 6.43 billion crowns, against the 6.53 billion forecast. Revenue grew 5.6 percent to 18.35 billion crowns, undershooting the average forecast of 18.61 billion.

The bank said mortgages surged 34 percent year-on-year and consumer loans rose 21 percent. Lending to small and medium-sized businesses grew 14 percent, while financing of big corporations was up 12 percent.

Komercni has benefited from economic growth of about 6 percent and rising incomes, employment and social transfers in the Czech Republic, which have fuelled a rise in consumer spending and a boom in buying on credit.

Low costs of borrowing, with central bank policy rates holding a record 75 basis points below eurozone benchmarks, have also spurred demand for mortgage loans and consumer credit. ((Reporting by Marek Petrus, editing by David Holmes/David Cowell; Reuters Messaging: rm://marek.petrus.reuters.com@reuters.net; e-mail: prague.newsroom@reuters.com or marek.petrus@reuters.com; Tel: +420 224 190 477))

Keywords: FINANCIAL CZECH KOMERCNI