Polish banks have cyclically high profits and the prospects for profitability are improving, said the Fitch agency. However, she warned that “the risk of government intervention remains high.”
“Polish banks continued to achieve good profits in 2024, despite legal risks related to mortgage loans in foreign currencies and continued pressure on operating costs,” wrote the Fitch rating agency.
Fitch warns Polish banks
“Solid core business results, Fitch's expectations for a revival of economic growth in Poland, a resilient labor market, gradually falling interest rates and potentially decreasing legal risk burden mean that the prospects for banks in 2025 are getting better,” the report added .
In the agency's assessment, these prospects are strengthened by the gradual increase in lending, although interest rates are expected to remain at higher levels for longer periods of time.
“The risk of government intervention remains high due to more state intervention in the banking sector than most regional peers, but we expect extraordinary fees to begin to decline. This underpins our review of the sector's prospects for 'improvement' in 2025.” – indicated the Fitch agency.
Profit of Polish banks
The net profit of the entire banking sector amounted to PLN 39.76 billion in the period January-November 2024 – the National Bank of Poland announced in January. This means that banks' profits increased by 44.3%. year to year.
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