Fitch agency said that Polish banks have cyclically high profits and profitability prospects are improving. However, he warned that “the risk of government intervention remains high.”
“Polish banks continued to generate good profits in 2024, despite legal risks related to foreign currency mortgage loans and continued pressure on operating costs,” wrote rating agency Fitch.
Fitch warns Polish banks
“Stable business results, Fitch’s expectations of a revival of economic growth in Poland, a stable labor market, a gradual decrease in interest rates and possibly a reduction in the legal burden mean that the outlook for banks will improve in 2025,” the report said.
In the agency’s assessment, these prospects are supported by a gradual increase in loans, although interest rates are expected to remain at higher levels for a long time.
“Government intervention risk remains high due to greater state intervention in the banking sector than most regional peers, but we expect abnormal charges to begin to decline. This is our view of the sector’s ‘improvement’ outlook in 2025.” – indicated the Fitch agency.
Profit of Polish banks
The net profit of the entire banking sector in the period January-November 2024 amounted to PLN 39.76 billion – the National Bank of Poland announced in January. This means that the profit of banks increased by 44.3 percent. year after year.
Also read: “Golden times” are here. The profit increases by billions >>>
Main image source: Shutterstock
