A few days ago, The Polish Financial Supervision Authority (KNF) provided data on banking sector performance for the first 7 months of 2020. It follows that there is a group of 17 banks: 9 commercial banks and 8 cooperative banks, which have a total net loss of 1 billion PLN calculated from the beginning of the year to the end of July. These banks had 10.1 per cent of the sector's assets.
Other banks in the sector reported a total profit of 5.3 billion PLN at the end of July. At the same time, the whole profit of the banking sector is lower by about 50 per cent year on year.
Jagiełło said that the results of August and September would not be better, as it is only in the third quarter that interest rate cuts would be fully visible in the income of banks in Poland. Moreover, he claims that soon, it should be assumed that it could be even worse than in the report presented.
‘Banks will accept credit customers and other types of transactions where this rate of return is lower. The best banks in Poland after the first half of the year have a rate of return of around 9-10 per cent, but it will decrease. The third quarter will be the weakest for interest income, and perhaps also partially the fourth quarter. Then there will be stabilization’ – said Jagiełło.
Author: Monika Tobiszowska
Source: Poland Daily