The banking sector in Poland. Current situation and trends 2024

The performance of Polish banks for last year looks very good. Banks recorded significant increases in operating income, achieving high profitability ratios, especially in terms of interest income. Despite the challenges posed by the mortgage loan portfolio denominated in CHF⚖️💴, the sector still has strong income potential and growth opportunities, especially after the partial resolution of the main problem of many banks, (CHF loans).

Forecasts for the coming years are optimistic, primarily due to the still high interest rates and the potential increase in demand for consumer loans (mortgages) due to the improving economy 🏖️🏢 and the financing of companies and local government entities (absorption of funds from NRP and UE funds) Banks should invest a significant part of their profits in high-tech solutions primarily based on artificial intelligence and robotics, which will accelerate the development of the banking business while reducing operating costs.

In an environment of falling interest rates, technological superiority and quality of service will be key to maintaining profitability. A rapid and efficient resolution of CHF-denominated loans remains a priority, allowing the sector to focus on financing the economy and consumer needs driven by innovative technologies. A major challenge is the rapid and significant growth of credit to businesses and local governments which has reached historic lows (relative to GDP) which correlates with the lowest level of investment relative to GDP in Poland in a decade📉🌪️