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S&P: Polish Banks to Remain “Strongly Profitable”

Published: January 15, 2014; 16:47 · (Vindobona)

In 2014’s outlook on Polish banks rating agency Standard&Poor; announced that Polish banks are expected to benefit from an ongoing economic recovery and remain “strongly profitable”.

S&P: Polish Banks to Remain “Strongly Profitable” / Picture: © Wikipedia / Magnus Manske

"Polish banks' sound financial profiles and balanced business models should allow them to withstand adverse economic and operating conditions and remain strongly profitable in 2014," the statement read.

"Polish banks' creditworthiness should benefit from the gradual economic recovery, thanks to an improvement in their earnings generation and a stabilization of their asset quality," S&P's credit analyst Francesca Sacchi said, as quoted in the statement.

The consolidation trend of the past two years is expected to continue. "... there have been some noteworthy mergers and acquisitions in the Polish banking sector over the past two years, and we anticipate that the trend of consolidation will continue in 2014," S&P wrote. "This is because, in our opinion, economies of scale are crucial for profitability."

Economic growth in Poland could be “well above” three percent year-on-year in 2015, Finance Minister Mateusz Szczurek told the Senate last week. "In 2015 Poland stands chances of returning to the path of faster growth similar to years 2010-2011, that is well above 3 percent," Szczurek said.

In regard to this year’s growth rate, Szczurek said that 2.8 percent year-on-year, as anticipated by the market, and the forecast of the Polish National Bank (NBP) of 2.9 percent “realistic to achieve this year”

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