Polish banks are earning big profits in 1st quar…

The net financial result of Polish banks amounted to PLN 11.77 billion (€2.76 billion) in the period January-March 2025, which means an increase of 16 percent year-over-year, reported the Polish Financial Supervision Authority (KNF). In March alone, the net result amounted to PLN 3.6 billion (€845 million).

“The net financial result at the end of March 2025 amounted to PLN 11.8 billion. This result was higher by PLN 1.6 billion (+16% y/y) than the result achieved at the end of March 2024. The net financial result on a monthly basis amounted to PLN 3.6 billion in March and was lower by PLN 0.6 billion (-13.3% m/m) than the result achieved in the previous month,” the report reads.

How much money did interest and fees bring in?

In the period January-March 2025, net interest income amounted to PLN 27.8 billion (+7.2% y/y), while net commission income reached PLN 4.94 billion (+0.2% y/y). Operating costs amounted to PLN 14.88 billion (+12.5% ​​y/y).

Write-offs (impairment or reversal of impairment) amounted to PLN 1.49 billion (-7.2% y/y).

The ROE of the banking sector at the end of March this year amounted to 15.68% (compared to 15.57% a month earlier and 12.31% a year earlier), while ROA reached 1.29% (compared to 1.28% and 0.99%, respectively), it was also reported in the presentation.

The net interest margin (NIM) stood at 3.77% at the end of March, compared to 3.79% a month earlier and 3.75% a year earlier.

At the end of December 2024, the sector’s capital adequacy ratios were 21.2 percent (TCR) and 20 percent (T1).

At the end of March 2025, the following banks were operating: 29 commercial banks, 489 cooperative banks, 33 branches of credit institutions and foreign banks.

Banks will ease credit granting criteria

Banks intend to continue easing the criteria for granting loans to households and SMEs in the second quarter of this year. They also expect an increase in demand for all types of loans, especially consumer loans, according to a survey by the National Bank of Poland (NBP).

“Changes in credit policy in the first quarter of 2025 were relatively small in scale. Banks eased the criteria for granting consumer loans and loans for the SME sector, which they justified mainly by the increase in competitive pressure. In the case of housing loans and for large enterprises, the criteria were not significantly changed. Banks experienced an increase in demand for consumer loans and loans for enterprises and a decrease in demand for housing loans,” reports the study entitled “Situation on the credit market. Results of a survey to the chairmen of credit committees Q2 2025.”

“In the second quarter of 2025, banks intend to continue easing the criteria for granting loans to households and SMEs, and in the case of large enterprises, tightening them for short-term loans. They expect an increase in demand for all types of loans, especially consumer loans,” the study further writes.