This crisis was to be different: it was to hit the economy understood as a market for services or goods. Banks – still treated by politicians as a foundation of the state – were to be safe. In the case of Poland, it is worth mentioning that even the previous crisis (already strictly financial) was not felt by us. Now it can be different …
Banks lose profits
– The net profit of the banking sector in January-May 2020 amounted to PLN 3.38 billion, which means that fell 42.2 percent yoy – informed the National Bank of Poland.
In May, the profit amounted to PLN 1 billion, while in April PLN 896 million. We also learn from the announcement that total net operating revenues in the period from January to May 2020 amounted to PLN 28.6 billion. It means a decrease of 2.9% yoy. Administrative costs were at the level of PLN 15.46 billion, while the decrease yoy by 0.3 percent.
The write-offs amounted to PLN 5.14 billion in the first five months of 2020, rising by 43.8% yoy.
In May, the write-offs amounted to PLN 916 million, in April they were at the level of PLN 978 million.
The worst in front of banks
Experts also suggest that banks face a wave of financial problems.
– In three years, about 15 percent may disappear in Poland. bank branches, and banks will increasingly reach for smaller branch formats. A pandemic effect may result drop in banks’ revenues in 2020 by up to 20 percentso they will look for savings – recently informed PAP Business director in the Warsaw office of the Kearney company Krystian Kamyk.
“Although Poland is one of the few countries in Europe that has significantly reduced the cost to income ratio over the past 5 years, such a decline would more than offset all this positive effect of the cost transformation of the Polish banking sector: if banks did not take any action, C / I could return to a level even worse than five years ago. “
“In 2015, there were over 14,000 in Poland bank branches, and in 2020 there are about 12 thousand Banks reduced the number of outlets by around 15 percent. in 5 years, despite the increase in customer revenue at that time and the overall good economic situation “
– he said.