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Banking (Bank Pekao, Alior Bank)

Annual Report 2019 > Banking (Bank Pekao, Alior Bank)
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Best Pratices in PZU

Market situation

As at the end of November 2019, there were 30 domestic commercial banks, 538 cooperative banks and 32 branches of credit institutions operating in Poland.

The standing of the banking sector in 2019 continued to be stable, underpinned by the persisting vibrancy of the economy and the functioning of banks in a low interest rate environment. In 2019, the banking sector generated a net profit of PLN 14.6 billion, i.e. PLN 1.5 billion (11.8%) more than in 2018.

The sector’s net result was shaped predominantly by the improved operating result (PLN 2.1 billion, i.e. up 11.8% in comparison to 2018), caused by significantly higher net interest income with a concurrent improvement in the result on fees and commissions.

Gross receivables from the non-financial sector (without debt instruments) increased 4.8% to PLN 1,062 billion y/y as at the end of December 2019. Growth in this area was driven mainly by receivables from households (+5.5% y/y) and receivables from enterprises (+3.3% y/y).

Banks’ operating expenses (other than depreciation and provisions) climbed 4.1% in the period under analysis. This change was caused by growing employee expenses (up 4.7%) and higher general and administrative expenses (up 3.6%).

As at the end of November 2019, assets of the banking sector reached PLN 2.0 trillion and increased by PLN 106,8 billion, or 5,6% compared to the end of 2018.The consumer loan portfolio (gross) increased by PLN 8,1 billion compared to the end of 2018, while the portfolio of housing loans for households rose at the same time by PLN 27,4 billion. With respect to receivables from non-financial undertakings, the (gross) value of operating and investment loan portfolios rose by PLN 3,5 billion and PLN 10,3 billion, respectively. During the year, the gross value of property loans granted to non-financial undertakings increased by PLN 0.3 billion.

As at the end of December 2019, the value of deposits from the non-financial sector increased by PLN 111,2 billion.

The banking sector’s own funds for capital ratios, calculated in accordance with the regulations laid down in the CRR Regulation1, totaled PLN 211 billion at the end of December 2019, up 3.6% from the end of December 2018.

As at the end of December 2019, the total capital multiple of the commercial and cooperative banking sectors was 19.7% compared to 19.0% at the end of December 2018, while the Tier I capital ratio at the end of this period was 17.1%.

Operations of the Pekao Group

New products and services

Pekao TFI

Operations of the Alior Bank Group

New products and services

Alior TFI

Factors, including threats and risks which will affect the banks’ operations in 2020