In contrast to some troubled CEE banking markets as Bulgaria or Slovenia, Poland's banking sector consistently demonstrates strong performance. All key volumes (deposits and loans) kept growing at moderate rates in the first half of 2014. At the same time the level of non-performing loans has been decreasing for most of loan categories. The only exception with growing NPL rates has been mortgage lending, which could be attributed to ageing of contracts and low dilution due to weak new sales of mortgage loans.
After a significant drop of market interest rates recorded in 2013 and a subsequent collapse of deposit margins, banks were able to stabilize margins again in H1 2014. As a result of higher margins and growing volumes, banks have recorded very good operating results, with net interest revenue advancing by 16% YoY in H1 2014. Strong interest revenues have more than compensated for stagnating fee & commission income, which has been affected by regulatory developments including bancassurance, card interchange and other.)
The banking sector in Poland remains strong, it is well capitalized and finally, thanks to accelerating build-up of local deposit, it is less and less dependent on external headwinds.
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Table of contents
1. Trends in banking sector in Poland - Update H1 2014 Slide 1: Executive summary
Slide 2: Retail deposits and loans - annual growth rates, 2010-H1 2014
Slide 3: Corporate deposits and loans - annual growth rates, 2010-H1 2014
Slide 4: Retail and corporate deposits and loans, H1 2013 vs. H1 2014
Slide 5: Non Performing loans by loan type, 2010-H1 2014
Slide 6: Deposit and lending margins evolution, 2012-H1 2014
Slide 7: Profitability tree for banks in Poland, 2011-H1 2014, ROA, ROE
Slide 8: Basic productivity indicators of banks in Poland, 2012-H1 2014
Slide 9: Revenues and costs of commercial banks in Poland, H1 2013 vs. H1 2014
Recent trends in Poland's banking sector - H1 2014
