An overview of the banking sector | Banking: today and tomorrow | April 2023

7 April 2023 | Banking today and tomorrow, Knowledge, News

Banking sector profitability at its lowest in two decades

The sector’s profitability in 2022 was the lowest since 2003, excluding the pandemic period. Only this year offers hope for improvement.

Although banks are earning billions in interest on loans after interest rates have risen, the overall profitability of the banking sector is surprisingly low. And most profitability ratios in 2022 were the lowest in almost two decades, excluding the pandemic years of 2020-2021.

Source: Rzeczpospolita

Banks’ financial performance. Latest figures published

The net financial result of the banking sector amounted to PLN 12.4 billion in 2022, compared to PLN 6.1 billion in the previous year, according to the Central Statistical Office. In turn, the National Bank of Poland reported that the banking sector’s net profit in January-February 2023 was PLN 6.13 billion, representing an increase of 49.1% year-on-year.

Source: TVN24

CHF loans need a systemic solution to avoid contagion to PLN loans

Speaking to PAP Biznes, Jacek Jastrzębski, Head of the Polish Financial Supervision Authority, said that a systemic and sustainable solution to the problem of CHF loans was needed to avoid further legal risks for PLN loans.

Source: PAP Biznes

CHF settlement agreements unevenly awarded. The law can be inconsistent

The problem of CHF loans is becoming increasingly acute and Polish financial market regulators are calling for amicable dispute settlement, and are encouraging banks to be more active in developing a universal settlement programme on terms that are attractive to clients. This is considered to be a win-win solution.

Source: Rzeczpospolita

A former mBank employee sues mBank

In a case concerning the cancellation of four CHF loan agreements, mBank is challenged by an economist, financier and… its former employee.

Source: Puls Biznesu

The Monetary Policy Council leaves the reference rate at 6.75%

“The Council assesses that the economic slowdown surrounding the Polish economy, together with the fall in commodity prices, will continue to have a dampening effect on global inflation, which will also have an impact on lower price dynamics in Poland. The weakening of the GDP growth rate, including the consumption growth rate, accompanied by a significant reduction in credit dynamics, will contribute to reducing domestic inflation.

As a result, the Council assesses that inflation in Poland will fall towards the NBP’s inflation target as a result of the NBP’s strong monetary policy tightening to date. At the same time, the return of inflation to the NBP’s inflation target will be gradual due to the size and persistence of the effects of past shocks which are beyond the control of domestic monetary policy. A more rapid reduction in inflation would be facilitated by a strengthening of the zloty, which the Council considers to be in line with the fundamentals of the Polish economy,” reads the Council’s post-meeting communiqué.


Banks want new commission on mortgages

Although Polish banks can charge compensation for early repayment of fixed-rate or periodically fixed-rate mortgages, they do not do so because of unclear regulations and legal risks. Discussions between representatives of the financial sector and the Competition and Consumer Protection Office continue. Read the article to find out how Poland plans to regulate this issue.

Source: Business Insider

Smartphones are replacing computers. Online banking becomes a thing of the past

71% of mobile banking app users no longer use online banking, according to data published by the Polish Bank Association. There are now 13.5 million “mobile only” customers. This group does not use traditional “computer banking”, preferring to manage their finances via a smartphone.


Tough talk from Credit Suisse Chairman: “The bank could not be saved”

Axel Lehmann, Credit Suisse Chairman, has apologised to the shareholders of the collapsed Swiss investment banking giant. He said that “the bank could not be saved” and that he was “truly sorry”.

The saga is to be brought to an end by the Swiss government’s rescue plan.


UBS says partial sale of Credit Suisse possible

Switzerland’s largest bank, UBS, was forced by politicians to take over the troubled Credit Suisse. Many are now concerned about the competitive situation in the Swiss banking market, with UBS seeking to reassure them.

Source: Rzeczpospolita

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Banking today and tomorrow | An overview of the banking sector | March 2023

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