* Q1 net profit 3.38 billion crown, vs 3.44 bln in poll
* Provisioning falls, but costs climb, revenue stagnant
* Says will hold onto Greek bond holdings
* Shares fall 1.7 percent, underperforming market
(Adds company comment, Greek bonds, share reaction)
By Jason Hovet
PRAGUE, May 5 (Reuters) - Czech lender Komercni Banka's first-quarter net profit rose slightly less than expected as lower revenue growth and climbing costs outweighed a sharp drop in bad loan provisions.
The Czech Republic's third-largest bank, which gives no formal guidance, said rising costs this year would likely outpace revenue growth, even as the domestic economy recovery leads to higher lending.
Net profit in the first three months of the year rose 5.2 percent to 3.38 billion crowns ($208.3 million), just missing the average estimated in a Reuters poll of analysts of 3.44 billion.
"Overall, the guidance for a cost increase this year above the revenue increase still holds. We should be, for the costs, somewhere around 7-8 percent (higher) in a year-on-year comparison," Chief Financial Officer Pavel Cejka said.
The bank, 60.4 percent owned by France's Societe Generale, said cost of risk, which includes mainly provisions for loan losses, fell 42.4 percent year-on-year.
When measured as a ratio of provisioning to overall loans and other assets, Komercni Banka said its cost of risk should stay stable around the current 55 basis points.
The bank's shares fell 1.7 percent to a one-week low of 4,260 crowns, underperforming the Prague PX index's 1 percent drop. Its shares have dropped 4 percent this year, compared with a 3 percent gain for the PX.
While the economy is recovering, Czech corporate lending has remained sluggish. Lending to businesses rose 1.3 percent for Komercni Banka in the first quarter, roughly in line with the wider market.
The bank reported net interest income rose 1.5 percent on the year to 5.37 billion crowns, while net banking income was flat at 7.97 billion crowns.
Operating costs increased 6.3 percent, led by personnel costs, rising after a decline during the economic downturn.
Czech banks weathered the financial crisis without needing any bailouts, thanks to strong balance sheets padded by a deposit base that exceeds the volume of loans provided. Banks also have limited exposure to foreign exchange loans.
Komercni Banka said it held Greek government bonds with a book value of 7.5 billion crowns but whose market value had dropped to 5.3 billion crowns by the end of April.
Markets have hammered Greek debt amid speculation the country may still be forced to restructure its debts despite last year's bailout by the European Union and International Monetary Fund.
Cejka reiterated the bank had no plans to sell its Greek holdings and that the market value was being reflected in the bank's equity. But any default would hit the bank.
"Impairment will have to be recognised when there is an observed default, which for the time being is not the case," he said.
The bank also announced the purchase of a 50.1 percent stake in Societe Generale Equipment Czech Republic for 1.8 billion crowns, giving it better exposure to the leasing market. (Reporting by Jason Hovet; Editing by Mike Nesbit and Will Waterman) ($1=16.23 Czech Crowns)