WARSAW: Bank Pekao, the Polish arm of Italy's UniCredit, reported on Monday a 5 percent fall in net profit in the first quarter as an economic upturn failed to fully offset the negative impact of record-low interest rates.

Pekao, Poland's No. 2 lender, said it earned 634 million zlotys ($208.6 million) compared with 665 million zlotys predicted by analysts polled by Reuters.