Banking sector continues to shrink
In 2024, Poland’s banking sector reported a record PLN 37 billion net profit, significantly higher than 2023's PLN 27.6 billion. However, this growth was driven largely by interest income, which accounted for over 81% of operating revenue, making banks highly vulnerable to expected interest rate cuts in 2025.
Credit supply for individuals and businesses continued to decline, with loans to GDP dropping to a historic low of 31%. Firms increasingly rely on internal funds and post-pandemic savings, reducing demand for investment loans. Meanwhile, banks shifted focus to debt instruments like government bonds, which now make up nearly 20% of assets, driven by favorable tax treatment.
Despite profitability gains, the sector's return on assets remains among the lowest in Europe.
(pb.pl)
