Be the first to like this
Poland's economy accelerated in 2015 with Gross Domestic Product (GDP) advancing at 3.6% annual rate. The key drivers of growth were: accelerating domestic consumption, fixed investments and favorable balance in foreign trade.
Banking volumes have continued to grow in course of 2015, reflecting favorable developments in the economy and higher consumer confidence. Total banking assets hit a record PLN 1.6 trillion as of December 2015, which corresponds to a 4% YoY growth rate. Deposits of non-financial clients at banks recorded a 8% YoY increase to PLN 0.99 trillion while lending rose by 7% to PLN 1.06 trillion.
In a base-case scenario, Poland's economy is likely to remain strong in 2016 but decelerate in 2017 and 2018. A continued growth in key banking volumes should be assumed, in particular in retail deposits and in corporate lending. As far as banks’ profitability is concerned, the industry is likely to see further reduction in profits in 2016, mostly due to bank tax, contributions to upcoming bail-outs and interest margins being under pressure thanks to record low interest rates.
For more information on recent developments in the Polish banking sector, please refer to the full publication at http://www.inteliace.com/en/00145_Banking_market_in_Poland_2016-2018.html