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Banking sector overview | Banking today and tomorrow | January 2024

NBP: Banking sector’s net profit in Jan-Nov 2023 reached PLN 27.56 billion, up 113.2%.

The National Bank of Poland reported that the banking sector’s net profit in January-November 2023 amounted to PLN 27.56 billion, up 113.2% year-on-year. In November alone, the banking sector recorded a net profit of PLN 3.48 billion. The total net operating profit in January-November 2023 was PLN 105.16 billion, up 24.4% year-on-year.

Source: Bank.pl

Agricultural financing made more difficult – banking sector announcement

On 7 January 2024, economically and legally unjustified amendments introduced by the Consumer Lombard Loan Act of 14 April 2023, which apply consumer solutions to farmers in relation to their agricultural activities, entered into force.

The amendments were introduced by the Sejm of the previous legislature without any consultation, analysis or impact assessment, which would have provided the fullest possible information on their potential consequences. These amendments will have serious consequences for the agricultural, banking and financial sectors, which may lead to difficulties in obtaining or even blocking financing for agricultural activities until the flawed provisions are removed or amended.

Source: Polish Bank Association (ZBP)

Seven trends in banking

The rise of fintech has transformed the world of finance. Although banking regulators are like beavers building legislative dams, banks and financial institutions are riding a wave of seven powerful trends. Macroeconomists believe the economy has bottomed out. A few days ago, the US Federal Reserve announced that there would be no more interest rate hikes, the European Central Bank is moving in a similar direction and emerging market banks have even started to cut interest rates. What does this have to do with the banking market situation? Quite a lot, but one of the most important consequences of entering a new economic cycle is that banks are becoming more active in implementing innovations and have a greater appetite for risk. The race is already on. Who wins will depend on how financial institutions adapt to current trends.

Source: My Company Polska

2024: Major changes for bank customers

Big hits tend to have sequels. 2024 is likely to bring sequels to two “financial regulatory hits” – subsidised mortgages and credit holidays. But there are also other changes ahead, particularly those affecting the banking market environment.

Source: Bankier.pl

Polish banks among Europe’s best performers, but Turks are leading the way

According to S&P Global Market Intelligence data, Turkish bank stocks top the list for the highest shareholder returns in 2023.

Source: Bank.pl

MF: Four banks appointed to organise a euro-denominated bond issue

The Ministry of Finance has announced that BNP Paribas, Citi, Commerzbank and ING have been awarded a mandate to organise a euro-denominated bond issue.

Source: Frosal.pl

2% safe mortgage to be replaced by another scheme to help first-time buyers in 2024

According to the Ministry of Development and Technology, the government has secured funds in the draft budget for 2024 to help Poles buy their first flat or house. The 2% safe mortgage in its current form will be replaced by another scheme, being more favourable to borrowers.

Source: Infor.pl

Banks positive about one scheme to help borrowers, negative about another

The Polish Bank Association has sent the Ministry of Finance its comments on the government’s proposed changes to the mortgage repayment holiday and the Borrower Support Fund (FWK). The industry association is positive about most of the changes to the FWK, but wants to see credit moratoria abandoned. It argues that they do not serve to support clients most in need, but are an instrument of unjustified social transfers to people who don’t actually need help.

Source: BusinessInsider.pl

The sanction of free credit, or what is the ‘consumer safety net’?

A mechanism has been built into the Consumer Credit Act to encourage lenders to diligently fulfil their obligations under the Act. Consumers are making increasing use of this ‘safety net’. Read on to find out what the sanction of free credit is.

Source: Bankier.pl

Banks on the decarbonisation of the Polish economy

The benefits to the economy of investing in conventional energy are lower than the costs incurred, according to the report entitled “The Cost of Failing to Decarbonise the Economy”, published at the end of December. The report was prepared by the Polish Economic Institute and the Polish Development Fund in cooperation with the Polish Bank Association, which also acted as the Report’s Patron.

Source: Bank.pl

VeloBank sale in the final straight. A key deadline in a week’s time

The future of VeloBank, which emerged from the forced restructuring of Getin Noble Bank, will be decided in the coming weeks. According to Business Insider Polska, the Bank Guarantee Fund is waiting for binding offers to buy the bank until mid-January. There are still three investors in the running who have been admitted to the second stage of the process. However, they now have to say how much they are prepared to pay for Leszek Czarnecki’s former company.

Source: Business Insider

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

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