Polish banking market to grow, profitability to fall in 2008-2010

"After the record 2007 year the Polish banking market will keep growing in 2008-2010. Banking Assets in Poland are expected to increase on average by ~13% per annum in nominal terms, while the profitability of commercial banks is likely to fall due to quickly growing personnel and infrastructure costs" said Marcin Mazurek, the CEO of Intelace Research, a consulting company specialized in CEE financial markets research.

BANKING MARKET
Polish banking market was flourishing in 2007. Explosive expansion of lending, including mortgage and very quick deposits growth contributed to jump in total client loans and deposits in 2007 by 29% and 14% respectively. Banks operating in Poland invested heavily in infrastructure opening massively new outlets and hired several thousands of new employees.

PERSPECTIVES
Despite worsening global economic climate, the Polish banking sector is likely to keep growing in the mid-term perspective. Both client deposits and loans are expected to increase following the improving situation of households and excellent performance of corporate sector. Interest margins are likely to remain on the current (high) level, at least until the Monetary Policy Council (RPP) keeps raising interest rates. The major threat is on the cost side. Growing infrastructure and employment together with substantial pay and rental cost increases are however very likely to affect banks profitability.

Intelace Research expects that banking assets in Poland will keep growing at 13% p.a. through 2010. Considering increasing revenues, mounting costs and slowing F&C income, it can be expected that the profitability measures: ROE and CI ratio will slightly worsen in 2008.

For more information on recent developments on the Polish banking market please refer to the publication: " BANKING MARKET IN THE POLAND 2008 - 2010" available under www.intelace.com/publications.htm

ABOUT THE REPORT
The report "BANKING MARKET IN POLAND 2008" builds on the success of the 2007 issue and provides an updated view of emerging trends in the banking sector of Poland. Similarly to the previous version, this analysis covers a wide range of perspectives including: market size, competitive structure, market shares and comparative analysis - benchmarking. The new study has been upgraded with most recent forecasts of banking assets, retail and corporate volumes evolution through 2010.

Marcin Mazurek
Manager
Intelace Research
Stryjenskich 13c/78
02-791 Warszawa, POLAND

Tel/Fax: +48 22 408 66 20
Tel: /mobile/ +48 502 512 178
Fax: +48 22 349 21 40
web: www.intelace.com
mail: info@intelace.com

Intelace Research is an independent consulting company focused on Central and Eastern Europe financial markets. It specializes in management consulting and custom research services including: market entry strategy, product launch, performance and benchmarking analysis.

During 2005-2008 Intelace Research has offered its products and services to 50+ clients including major CEE banks and several "The Banker" top world banks. To learn more about the company visit Intelace Research webpage under: www.intelace.com .

This release was published on openPR.