Polish banks seen ‘strongly profitable’ in 2014 - S&P
January 15, 2014
Poland's banks are expected to remain "strongly profitable" in 2014 as the sector will benefit from ongoing economic recovery, rating agency Standard&Poor's said in a statement on sector's 2014 outlook.
"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 analysts also expect that consolidation trend in the sector visible in the last two years will 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."