GDANSK, Feb 22 (Reuters) - Poland's second-biggest lender Pekao on Thursday posted a 95% year-on-year rise in fourth quarter net profit, driven by strong net interest income and lower regulatory and provision costs.

The quarterly profit exceeded market expectations, coming in at 1.72 billion zlotys ($431.55 million) compared to 1.57 billion zlotys forecast by analysts in company-provided consensus.

The bank also said it recommended an all-time high dividend of 19.20 zlotys per share, as it plans to distribute profits stored from 2019 and 2023.

The quarterly results did not suffer from provisions for foreign exchange mortgage loans, which had cost the bank 913 million zlotys a year ago.

Additionally the bottom line was supported by solid net interest income, which remained largely unchanged at 3.13 billion zlotys.

The net result for full year jumped nearly four-fold to a record 6.58 billion zlotys.

Polish banks have benefited recently from higher interest rates, but their earnings have been under pressure for several years from costs related to

Swiss franc mortgage loans

.

Quarterly net interest margin amounted to 4.16%. ($1 = 3.9856 zlotys) (Reporting by Mateusz Rabiega; Editing by Kim Coghill)