GDANSK (Reuters) - Poland's BNP Paribas BP posted a higher-than-expected 43% jump in third-quarter net profit on Friday, supported by strong core revenues and lower provisions for legal risks associated with Swiss franc mortgages.

WHY IT'S IMPORTANT

Court rulings in favour of those who took out mortgages denominated in Swiss francs have dogged the Polish banks for years, significantly reducing their profits.

Courts are still handling tens of thousands of Swiss franc loan cases, with the government working on a standardised settlement format.

Without a resolution, the issue could continue to dampen the sector's profits for another 12 to 15 years, Polish Bank Association data showed.

BY THE NUMBERS

Net profit at BNP Paribas' Polish unit was 635.5 million zlotys ($159.0 million) in the quarter, ahead of the 595 million seen in a company-compiled consensus.

Net interest income rose 16% on the year to 1.58 billion zlotys, supported by a one-off positive impact from lower number of participants subscribing to the country's "credit vacation" scheme.

Net fee and commission earnings were 311.2 million zlotys.

Legal provisions for Swiss franc denominated mortgages fell 25% to about 277 million zlotys.

CONTEXT

A strengthening Swiss franc and higher interest rates led to unexpectedly high repayments for hundreds of thousands of Poles who had taken Swiss franc mortgages at a time of low interest rates in the 2000s and early 2010s.

Many of these borrowers, backed by the Poland's anti-monopoly office and later EU courts, initiated legal actions against the banks.

($1 = 3.9978 zlotys)

(Reporting by Mateusz Rabiega; Editing by Milla Nisi)