Banking sector data August 2020...Slide 6 UKNF –Commercial and Specialist Banking Department• At...

Banking sector dataAugust 2020

Based on the data of the National Bank of Poland reported on:28 September 2020

UKNF – Commercial and Specialist Banking Department

At the end of August 2020,

there were:

• 30 commercial banks,

• 533 cooperative banks,

• 34 branches of credit

institutions.

90%

7%

3%

Polish banking sector structureAugust 2020

Commercialbanks

Cooperativebanks

Branches ofcreditinstitutions

43%

12%

44%

Ownership structure in terms of assetsAugust 2020

State

Polish private capital

Foreign capital

59

67

59

46

61

66

61

47

61

20

61

02

60

70

60

28

60

05

59

79

58

82

58

05

57

76

36

01

35

91

33

53

33

54

32

68

32

47

32

46

32

21

32

11

31

92

31

13

30

68

30

45

28

40

28

05

30

15

30

15

33

93

33

76

32

98

33

23

32

60

32

28

32

53

32

28

32

17

159 158 158 157 157 156 156 156 155 155154

152151

145

150

155

160

0

2 000

4 000

6 000

8 000

Aug 19 Sep 19 Oct 19 Nov 19 Dec 19 Jan 20 Feb 20 Mar 20 Apr 20 May 20 Jun 20 Jul 20 Aug 20

Banking net

Branch offices Other customers service facilities Agencies Thousands of employees (right axis)


HHI of 776 indicates a competitive market.

Over the last 2 years there has been an increase in terms of net profit concentration,

caused by a higher share of banks with a financial loss in the sector’s net profit.

48

%

48

%

50

%

51

%

50

%

55

%

70

%

67

%

81

%

83

%

76

%

86

%

661648

692 697 698

776

0

100

200

300

400

500

600

700

800

900

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Dec 16 Dec 17 Dec 18 Aug 19 Dec 19 Aug 20

Concentration rates

CR5 - assets CR5 - net profit HHI - assets (right axis)


• The net financial result at the end of August 2020 amounted to PLN 5.6 bn and was

lower by PLN 5.0 bn (-46.8% yoy) than the profit achieved at the end of August 2019.

• At the same time the net financial result in August 2020 was equal to PLN 1.3 bn and

was higher than the one reported in July 2020 by PLN 0.2 bn.

Banking sector: components of net profit (PLN m); August 2020

Increase Decrease Total


5,6

34

.2

10

,59

7.1

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

I II III IV V VI VII VIII IX X XI XII

Banking sector: net profit (PLN, m)

2020 2019 net profit for 2019

5,115.1 -10,077.9

-4,962.9

464.4

99.8

-3,133.6

263.1

-1,463.2

689.9

-1,144.6

3,597.9

-4,336.5

Net profit

Total change

Tax expense

Other

Result from provisions and write-off

Administration expenses and depreciation

Other net operating income

Net fee and commission income

Dividend income

Interest expenses

Interest income

net profit increase net profit decrease

Banking sector - impact of changes in individual items of P&L on the financial result - yoy (PLN m); August 2020


• At the end of August 2020, 20 banks (10 commercial and 10 cooperative banks) reported

a total loss of PLN 1.1 bn, which accounted for approx. 10.1% share in the sector’s assets*.

• Other banks in the sector* reported a total profit of PLN 6.6 bn.

*/ commercial and cooperative banks

At the end of August 2020, the share of loss-making banks

was:

• 14.1% of the entire portfolio of receivables from the

non-financial sector at commercial and cooperative

banks;

• 10.9% of the entire portfolio of the non-financial

sector deposits at commercial and cooperative banks.

0.210.1%

2.089.9%

Banks with financial loss Other banks

Sector assets* (PLN tn) in August 2020;share of banks with financial loss


57

.7%

57

.9%

58

.5%

60

.3%

67

.8%

66

.0%

63

.5%

57

.0%

57

.0%

57

.1%

57

.3%

57

.5%

57

.8%

13

.8%

13

.9%

14

.0%

14

.1%

14

.5%

12

.4%

12

.7%

12

.9%

14

.9%

15

.3%

16

.0%

16

.7%

17

.4%

0%

3%

6%

9%

12%

15%

18%

Au

g 1

9

Sep

19

Oct

19

No

v 1

9

De

c 1

9

Jan

20

Feb

20

Mar

20

Ap

r 2

0

May

20

Jun

20

Jul 2

0

Au

g 2

0

0%

10%

20%

30%

40%

50%

60%

C/I (right axis) R/I (left axis)

Cost to income (C/I) and provisions and write-offs to income (R/I)**

0.7

0%

0.6

9%

0.7

0%

0.6

8%

0.7

0%

0.7

2%

0.7

3%

0.6

2%

0.5

9%

0.5

6%

0.4

7%

0.4

3%

0.4

2%

6.48% 6.55% 6.62% 6.42%6.74% 6.89% 6.96%

5.96% 5.75%5.47%

4.61%4.32% 4.17%

2.62% 2.62% 2.62% 2.64% 2.63% 2.63% 2.63% 2.63% 2.60% 2.57% 2.53% 2.47% 2.42%

0%

1%

2%

3%

4%

5%

6%

7%

8%

Au

g 1

9

Sep

19

Oct

19

No

v 1

9

Dec

19

Jan

20

Feb

20

Mar

20

Ap

r 2

0

May

20

Jun

20

Jul 2

0

Au

g 2

0

0.0%

0.2%

0.4%

0.6%

0.8%

1.0%

Efficiency ratios*

ROA (right axis) ROE (left axis) NIM (left axis)

ROE change:- 2.31p.p. yoy

- 0.16p.p. mom

ROA change:- 0.28p.p. yoy - 0.01p.p.mom

R/I change:1.44p.p. yoy

2.02p.p. mom

NIM change:- 0.05p.p. yoy - 0.20p.p.mom

*/ ROA and ROE ratios: relations between the financial result achieved over the last 12 months to average assets and average capital in the same period. ROE ratio refers to the aggregate of commercial and cooperative banking sector (excluding branches of credit institutions), ROA ratio refers to the entire banking sector.NIM ratio: relations between net interest income over the last 12 months to average interest assets in the same period.

**/ C/I ratio: relations between costs (operating costs + depreciation of fixed assets and intangible assets) to income (total operating income, net); moving average of 12 months./ R/I ratio: relations between write-offs and provisions (provisions + impairment or reversal impairment) to income (total operating income, net); moving average of 12 months.


• Changes in the banks’ legal form were the main driver for annual changes in subsectors.

*/ commercial and cooperative banks

0%

2%

4%

6%

8%

10%

12%

14%

0

500

1,000

1,500

2,000

2,500

Au

g 1

5

Oct

15

Dec

15

Feb

16

Ap

r 1

6

Jun

16

Au

g 1

6

Oct

16

Dec

16

Feb

17

Ap

r 1

7

Jun

17

Au

g 1

7

Oct

17

Dec

17

Feb

18

Ap

r 1

8

Jun

18

Au

g 1

8

Oct

18

Dec

18

Feb

19

Ap

r 1

9

Jun

19

Au

g 1

9

Oct

19

Dec

19

Feb

20

Ap

r 2

0

Jun

20

Au

g 2

0

Assets - PLN, bn (left axis) Equity/Assets (right axis)

Equity vs total assets, commercial and cooperative banks

Balance sheet total (PLN bn) August 2020 change mom change yoy

Banking sector 2,313.9 12.7 15.3%

Commercial banks 2,086.8 12.5 16.2%

Cooperative banks 156.9 2.6 9.2%

Branches of credit institutions 70.1 -2.4 4.1%

712.931%

1,373.959%

227.110%

Debt securitiesLoans and advancesOther assets

Balance sheet structure: assets*(PLN bn), August 2020

1,697.773%

162.37%

92.04%

136.96% 224.9

10%

DepositsBanks' own securitiesReceived loansOther liabilitiesTotal equity

Balance sheet structure: liabilities*(PLN bn), August 2020


21.63.9 4.0

155.5

59.5 62.6

307.1

4.9

-0.8

286.7

-2.0

2.9 15.4

Cas

h, c

ash

bal

ance

s at

cen

tral

ban

ks a

nd

oth

er d

eman

dd

ep

osi

ts

Fin

anci

al a

sset

s h

eld

fo

r tr

adin

g

Fin

anci

al a

sset

s d

esi

gnat

ed a

t fa

ir v

alu

e th

rou

gh p

rofi

t o

r lo

ss

Fin

anci

al a

sset

s at

fai

r va

lue

th

rou

gh o

ther

co

mp

reh

ensi

vein

com

e/ F

inan

cial

ass

ets

avai

lab

le f

or

sale

Fin

anci

al a

sset

s at

am

ort

ised

co

st

Oth

er

asse

ts

CH

AN

GE

OF

TOTA

L B

ALA

NC

E SH

EET

Fin

anci

al li

abili

ties

he

ld f

or

trad

ing

Fin

anci

al li

abili

ties

de

sign

ated

at

fair

val

ue

thro

ugh

pro

fit

or

loss

Fin

anci

al li

abili

ties

mea

sure

d a

t am

ort

ised

co

st

Oth

er

fin

anci

al li

abili

tie

s

Pro

visi

on

s

Tota

l eq

uit

y

Change in the period between August 2019 and August 2020 (PLN bn)

ASSETS LIABILITIESchange

15%

Portfolio structure of the balancesheet: banking sector


179.823.6%

469.061.5%

113.314.9%

Consumer loansHousing loansOther receivables

Gross receivables from householdsportfolio B* (PLN bn)

August 2020

• The gross volume of loans to the non-financial sector increased by PLN 2.20 bn overthe last month, with the biggest impact of loans granted to corporates (increase ofPLN +1.5 bn).

*/ at amortised cost and fair value through other comprehensive income; excluding debt securities.

74

8.2

74

3.9

74

2.0

74

5.5

74

5.3

75

1.1

75

6.1

76

4.7

76

4.0

76

0.2

76

0.7

76

0.5

76

2.0

38

9.0

38

7.4

38

8.1

39

2.1

38

3.9

38

9.6

39

0.0

40

2.4

39

9.9

39

0.7

38

4.4

37

5.6

37

6.3

1,144.7 1,146.1

0.0

200.0

400.0

600.0

800.0

1,000.0

1,200.0

1,400.0

Au

g 1

9

Sep

19

Oct

19

No

v 1

9

De

c 1

9

Jan

20

Feb

20

Mar

20

Ap

r 2

0

May

20

Jun

20

Jul 2

0

Au

g 2

0

Receivables from non-financial sector ‒ portfolio B* (PLN bn)

Households Corporates Non-financial sector

change yoy 0.12%

change yoy 1.85%

change yoy -3.28%


* / excluding debt securities

0%

1%

2%

3%

4%

5%

6%

7%

8%

9%

0

200

400

600

800

1,000

1,200

1,400

Au

g 1

5

Oct

15

Dec

15

Feb

16

Ap

r 1

6

Jun

16

Au

g 1

6

Oct

16

Dec

16

Feb

17

Ap

r 1

7

Jun

17

Au

g 1

7

Oct

17

Dec

17

Feb

18

Ap

r 1

8

Jun

18

Au

g 1

8

Oct

18

Dec

18

Feb

19

Ap

r 1

9

Jun

19

Au

g 1

9

Oct

19

Dec

19

Feb

20

Ap

r 2

0

Jun

20

Au

g 2

0

Non-financial sector receivables* quality

Loans and advances (gross) PLN bn - left axis Share of impaired receivables % - right axis

Change:0.19% mom0.12% yoy

Change:0.03 p.p. mom0.25 p.p. yoy

0%

1%

2%

3%

4%

5%

6%

7%

8%

0

100

200

300

400

500

600

700

800

900

Au

g 1

5

Oct

15

Dec

15

Feb

16

Ap

r 1

6

Jun

16

Au

g 1

6

Oct

16

Dec

16

Feb

17

Ap

r 1

7

Jun

17

Au

g 1

7

Oct

17

Dec

17

Feb

18

Ap

r 1

8

Jun

18

Au

g 1

8

Oct

18

Dec

18

Feb

19

Ap

r 1

9

Jun

19

Au

g 1

9

Oct

19

Dec

19

Feb

20

Ap

r 2

0

Jun

20

Au

g 2

0

Households receivables* quality

Loans and advances (gross) PLN bn - left axis Share of impaired receivables % - right axis





2,3

89

.7

4,2

51

.7

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

I II III IV V VI VII VIII IX X XI XII

Banking sector: net profit (PLN, m)

2020 2019 net profit for 2019

0%

2%

4%

6%

8%

10%

12%

14%

0

20

40

60

80

100

120

140

160

180

200

Ap

r 15

Jun

15

Au

g 1

5

Oct

15

Dec

15

Feb

16

Ap

r 16

Jun

16

Au

g 1

6

Oct

16

Dec

16

Feb

17

Ap

r 17

Jun

17

Au

g 1

7

Oct

17

Dec

17

Feb

18

Ap

r 18

Jun

18

Au

g 1

8

Oct

18

Dec

18

Feb

19

Ap

r 19

Jun

19

Au

g 1

9

Oct

19

Dec

19

Feb

20

Ap

r 20

Consumer loans quality

Consumer loans PLN bn (left axis) Share of impaired receivables % (right axis)

Change:- 1.19% mom0.88% yoy


0.0%

0.5%

1.0%

1.5%

2.0%

2.5%

3.0%

3.5%

4.0%

0

100

200

300

400

500

Ap

r 15

Jun

15

Au

g 1

5

Oct

15

Dec

15

Feb

16

Ap

r 16

Jun

16

Au

g 1

6

Oct

16

Dec

16

Feb

17

Ap

r 17

Jun

17

Au

g 1

7

Oct

17

Dec

17

Feb

18

Ap

r 18

Jun

18

Au

g 1

8

Oct

18

Dec

18

Feb

19

Ap

r 19

Jun

19

Au

g 1

9

Oct

19

Dec

19

Feb

20

Ap

r 20

Housing loans quality

Housing loans PLN bn (left axis) Share of impaired receivables % (right axis)

Change:0.01 p.p. mom- 0.07 p.p. yoy


0%

2%

4%

6%

8%

10%

12%

14%

0

20

40

60

80

100

120

140

160

180

200

Au

g 1

5

Oct

15

Dec

15

Feb

16

Ap

r 1

6

Jun

16

Au

g 1

6

Oct

16

Dec

16

Feb

17

Ap

r 1

7

Jun

17

Au

g 1

7

Oct

17

Dec

17

Feb

18

Ap

r 1

8

Jun

18

Au

g 1

8

Oct

18

Dec

18

Feb

19

Ap

r 1

9

Jun

19

Au

g 1

9

Oct

19

Dec

19

Feb

20

Ap

r 2

0

Jun

20

Au

g 2

0

Consumer loans quality

Consumer loans PLN bn (left axis) Share of impaired receivables % (right axis)

Change:0.38% mom- 2.58% yoy


0.0%

0.5%

1.0%

1.5%

2.0%

2.5%

3.0%

3.5%

4.0%

0

100

200

300

400

500

Au

g 1

5

Oct

15

Dec

15

Feb

16

Ap

r 1

6

Jun

16

Au

g 1

6

Oct

16

Dec

16

Feb

17

Ap

r 1

7

Jun

17

Au

g 1

7

Oct

17

Dec

17

Feb

18

Ap

r 1

8

Jun

18

Au

g 1

8

Oct

18

Dec

18

Feb

19

Ap

r 1

9

Jun

19

Au

g 1

9

Oct

19

Dec

19

Feb

20

Ap

r 2

0

Jun

20

Au

g 2

0

Housing loans quality

Housing loans PLN bn (left axis) Share of impaired receivables % (right axis)

Change:0.00 p.p. mom- 0.02 p.p. yoy




0%

2%

4%

6%

8%

10%

12%

14%

170

175

180

185

190

195

200

205

210

215

Au

g 1

5

Oct

15

Dec

15

Feb

16

Ap

r 1

6

Jun

16

Au

g 1

6

Oct

16

Dec

16

Feb

17

Ap

r 1

7

Jun

17

Au

g 1

7

Oct

17

Dec

17

Feb

18

Ap

r 1

8

Jun

18

Au

g 1

8

Oct

18

Dec

18

Feb

19

Ap

r 1

9

Jun

19

Au

g 1

9

Oct

19

Dec

19

Feb

20

Ap

r 2

0

Jun

20

Au

g 2

0

Loans to SMEs

Loans to SMEs PLN bn (left axis) Share of impaired receivables % (right axis)



0%

1%

2%

3%

4%

5%

6%

7%

8%

9%

0

50

100

150

200

250

Au

g 1

5

Oct

15

Dec

15

Feb

16

Ap

r 1

6

Jun

16

Au

g 1

6

Oct

16

Dec

16

Feb

17

Ap

r 1

7

Jun

17

Au

g 1

7

Oct

17

Dec

17

Feb

18

Ap

r 1

8

Jun

18

Au

g 1

8

Oct

18

Dec

18

Feb

19

Ap

r 1

9

Jun

19

Au

g 1

9

Oct

19

Dec

19

Feb

20

Ap

r 2

0

Jun

20

Au

g 2

0

Loans to large enterprises

Loans to large enterprises PLN bn (left axis) Share of impaired receivables % (right axis)





9.8

23.5

11.7

2.4

32.4

0.1

79.9

Large Enterprises

SMEs

Individual Entrepreneurs

Farmers

Households

Non-commercial Institution

Non-financial sector total

Stage 3 receivables (PLN bn)

5.61%

11.65%

15.53%

7.28%

4.96%

1.57%

6.97%

stage F3 share

59.84%

51.08%

68.31%

46.02%

65.37%

50.78%

60.33%

loans stage F3 CovR

2.45%

3.54%

10.24%

6.07%

8.06%

4.48%

5.98%

loans stage F2 CovR

12.78%

13.85%

11.62%

5.51%

8.09%

2.59%

9.94%

stage F2 share

22.4

27.9

8.8

1.8

52.9

0.2

113.9

Large Enterprises

SMEs


Farmers

Households




174.9

201.3

75.6

32.6

653.8

7.8

1,146.1

Large Enterprises

SMEs


Farmers

Households



Total (PLN bn); August 2020

81.61%

74.50%

72.84%

87.20%

86.96%

95.84%

83.09%

stage F1 share

0.51%

0.62%

1.03%

0.18%

0.41%

0.20%

0.49%

loans stage F1 CovR



49.6

179.8

469.0

9.2

18.0

69.1

187.6

163.9

Others receivables

Consumerloans

Housing loans-households

Housing loans-developers

Commercial real estate loans

Other real estate loans

Operating loans

Investment loans

Total (PLN bn); August 2020

77.86%

79.12%

90.09%

77.39%

84.86%

77.20%

76.26%

79.41%

stage F1 share

0.40%

1.43%

0.08%

0.22%

0.56%

0.39%

0.83%

0.49%

loans stage F1 CovR

5.0

17.0

35.2

0.8

1.7

9.7

22.3

22.2

Others receivables

Consumerloans





Operating loans

Investment loans


10.06%

9.45%

7.51%

8.61%

9.23%

14.10%

11.90%

13.53%

stage F2 share

3.96%

15.00%

4.69%

2.12%

1.19%

2.87%

5.35%

4.08%

loans stage F2 CovR

6.0

20.5

11.3

1.3

1.1

6.0

22.2

11.6

Others receivables

Consumerloans





Operating loans

Investment loans


12.08%

11.43%

2.40%

14.01%

5.91%

8.71%

11.84%

7.05%

stage F3 share

70.08%

70.43%

55.73%

59.65%

29.68%

35.37%

63.72%

51.18%

loans stage F3 CovR


• Housing loans to households increased by PLN 1.1 bn (+0.2% mom; +5.8% yoy) whilehousing loans in PLN increased by PLN 2.0 bn (+0.6% mom; +10.7% yoy). PLN loansaccounted for 73.7% of housing loans to households in August 2020.

• Consumer loans increased by PLN 0.7 bn (+0.4% mom; -2.6% yoy), compared toa decrease of PLN 0.7 bn in July 2020.

• Operating loans to non-financial corporations increased in August 2020 by PLN 0.8 bn(+0.6% mom; -10.9% yoy), compared to a decrease of PLN 5.1 bn in July 2020.

• Investment loans to non-financial corporations increased by PLN 0.4 bn (+0.3% mom;+4.1% yoy), compared to a decrease of PLN 1.6 bn in July 2020.

• Impaired receivables (stage 3) from non-financial sector in August 2020:

increased to PLN 79.9 bn (an increase of +0.6% mom);

dominant components were operating loans (PLN 22.2 bn) and consumer loans(PLN 20.5 bn);

the structure by client was dominated by households (PLN 32.4 bn) and SMEs(PLN 23.5 bn).



222.712.4%

174.29.7%

1,392.877.8%

Financial sector

General Government sector

Non-financial sector

Deposits and received loans:August 2020 (PLN bn)

11

6.3

11

7.8

11

1.9

11

3.8

11

1.0

11

0.4

11

2.0

11

8.5

11

7.3

11

4.4

11

2.3

11

3.5

11

2.7

10

8.3

10

6.0

10

3.5

10

4.5

10

5.4

10

8.3

11

4.3

11

5.0

13

0.2

12

3.4

11

7.3

11

0.0

10

9.9

Au

g 1

9

Sep

19

Oct

19

No

v 1

9

Dec

19

Jan

20

Feb

20

Mar

20

Ap

r 2

0

May

20

Jun

20

Jul 2

0

Au

g 2

0

Financial sector deposits and loans (PLN bn)

Non-resident Resident

• Deposits structure by sector remainsunchanged.

• Financial sector deposits and receivedloans continue to decline, in August 2020they decreased by PLN -0.9 bn (-0.4%mom; -0.9% yoy).


983.070.6%

379.027.2%

30.92.2%

households

enterprises

non-commercial institutions

Non-financial sector deposits:August 2020 (PLN bn)

1,199.786.1%

190.113.6%

3.00.2%

PLN other than PLN blocked deposits - all currencies

• In August 2020, the downward trend in the loans to deposits ratio stopped (-0.04 pp mom; -11.5 pp yoy), which had continued since February 2020.

• Non-financial sector deposits (with blocked deposits) in August 2020 increased by PLN 1.2 bn, to PLN 1,392.8 bn (+0.1 mom; +14.8% yoy).

• The structure of the non-financial sector deposits is dominated by households (70.6%) and deposits denominated in PLN (86.1%).

*/ loans at balance sheet value

72%

74%

76%

78%

80%

82%

84%

86%

88%

90%

92%

0

200

400

600

800

1,000

1,200

1,400

1,600

Au

g 1

9

Sep

19

Oct

19

No

v 1

9

Dec

19

Jan

20

Feb

20

Mar

20

Ap

r 2

0

May

20

Jun

20

Jul 2

0

Au

g 2

0

Deposits PLN bn (left axis) Loans PLN bn (left axis) Loans to deposits (right axis)

Deposits vs receivables* from non-financial sector (PLN bn)


0100200300400500600700800900

1 000

Au

g 1

5

Oct

15

Dec

15

Feb

16

Ap

r 1

6

Jun

16

Au

g 1

6

Oct

16

Dec

16

Feb

17

Ap

r 1

7

Jun

17

Au

g 1

7

Oct

17

Dec

17

Feb

18

Ap

r 1

8

Jun

18

Au

g 1

8

Oct

18

Dec

18

Feb

19

Ap

r 1

9

Jun

19

Au

g 1

9

Oct

19

Dec

19

Feb

20

Ap

r 2

0

Jun

20

Au

g 2

0

Households deposits (PLN bn)

PLN currency

Change:- 0.40% mom9.94% yoy


0

50

100

150

200

250

300

350

Au

g 1

5

Oct

15

Dec

15

Feb

16

Ap

r 1

6

Jun

16

Au

g 1

6

Oct

16

Dec

16

Feb

17

Ap

r 1

7

Jun

17

Au

g 1

7

Oct

17

Dec

17

Feb

18

Ap

r 1

8

Jun

18

Au

g 1

8

Oct

18

Dec

18

Feb

19

Ap

r 1

9

Jun

19

Au

g 1

9

Oct

19

Dec

19

Feb

20

Ap

r 2

0

Jun

20

Au

g 2

0

Enterprises deposits (PLN bn)

PLN currency




18

3

18

7

19

8

20

0

20

5

20

9

20

4

20

7

20

7

21

0

21

0

21

0

22

3

Jun

17

Sep

17

Dec

17

Mar

18

Jun

18

Sep

18

Dec

18

Mar

19

Jun

19

Sep

19

Dec

19

Mar

20

Jun

20

Own funds (PLN bn)

98

9

1,0

04

1,0

43

1,0

60

1,0

84

1,0

88

1,0

69

1,0

90

1,0

95

1,1

13

1,1

02

1,1

46

1,1

18

Jun

17

Sep

17

Dec

17

Mar

18

Jun

18

Sep

18

Dec

18

Mar

19

Jun

19

Sep

19

Dec

19

Mar

20

Jun

20

Total risk exposure amount (PLN bn)

9.6

%

8.3

%

2.6

%

2.9

%

1.1

% 2.3

% 3.1

%

5.2

%

2.1

%

Jun

18

Sep

18

Dec

18

Mar

19

Jun

19

Sep

19

Dec

19

Mar

20

Jun

20

Total risk exposure amount dynamics yoy

11

.8%

11

.6%

3.0

%

3.4

%

1.0

%

0.7

%

3.3

%

1.7

%

7.8

%

Jun

18

Sep

18

Dec

18

Mar

19

Jun

19

Sep

19

Dec

19

Mar

20

Jun

20

Own funds dynamics yoy


• Increase in credit and operational risk

exposure amounts over the last two

quarters.

• Capital situation of the banking sector

remains stable.

9.1

%

8.9

%

2.1

%

2.7

%

0.9

%

0.3

%

2.4

%

1.1

%

7.9

%

42

.5%

43

.1%

12

.5%

10

.3%

2.4

%

4.9

% 11

.0%

6.9

%

6.9

%

Jun

18

Sep

18

Dec

18

Mar

19

Jun

19

Sep

19

Dec

19

Mar

20

Jun

20

Tier I capital and Tier II capital dynamics yoy

Tier I capital Tier II capital

11

.1%

8.9

%

2.8

%

3.2

%

1.3

%

2.5

%

3.3

%

4.9

%

1.4

%

3.4

%

3.1

%

2.4

%

2.6

%

0.2

%

0.8

%

1.4

%

9.6

% 12

.8%

-22

.0%

2.7

%

-6.2

%

-13

.3% -8

.9%

-2.1

%

-3.1

%

-3.9

%

-9.3

%

Jun

18

Sep

18

Dec

18

Mar

19

Jun

19

Sep

19

Dec

19

Mar

20

Jun

20

Risk exposure amount dynamics yoy

Credit risk Operational risk Other risks

98

2.1

81.520.0

99

5.2

81.718.2

1,0

09

.6

92.116.5

Credit risk Operational risk Other risks

Risk exposure amount (PLN bn)

Jun 18 Jun 19 Jun 20


• Capital adequacy ratios of the sector remain at 19.9% (TCR) and 17.9% (T1).

• Two commercial banks failed to comply with the minimum regulatory ratios as of the end

of June 2020.

18

.51

%

18

.65

%

18

.96

%

18

.86

%

18

.87

%

19

.21

%

19

.05

%

18

.96

%

18

.87

%

18

.91

%

19

.08

%

18

.34

%

19

.92

%

17

.04

%

17

.22

%

17

.21

%

17

.02

%

16

.97

%

17

.32

%

17

.13

%

16

.99

%

16

.94

%

16

.97

%

17

.02

%

16

.33

%

17

.90

%

Jun

17

Sep

17

Dec

17

Mar

18

Jun

18

Sep

18

Dec

18

Mar

19

Jun

19

Sep

19

Dec

19

Mar

20

Jun

20

Capital adequacy ratios

TCR T1 ratio

0.3

7p

p

0.5

6p

p

0.0

9p

p

0.1

0p

p

0.0

0p

p

-0

.29

pp

0.0

4p

p

-0

.63

pp

1.0

5p

p

-0.0

7p

p

0.1

0p

p

-0.0

8p

p

-0.0

3p

p

-0.0

3p

p

-0.3

4p

p

-0.1

1p

p

-0.6

6p

p

0.9

6p

p

Jun

18

Sep

18

Dec

18

Mar

19

Jun

19

Sep

19

Dec

19

Mar

20

Jun

20

Changes in capital adequacy ratios yoy (p.p.)

TCR T1 ratio


• At the end of August, all commercial banks fulfilled the binding requirement of LCR.

• Average LCR of commercial banks is well above the minimum requirement – at the end of

August, it was at 198%.

149% 151% 154% 157% 156% 157% 163% 164%179%

197% 203%195% 198%

0%

50%

100%

150%

200%

250%


LCR

392 385 368 382 372 391 395 418

530575 597

624 621

262 256 239 243 239 249 243 255295 291 294

320 314

0

100

200

300

400

500

600

700


Ratio of liquidity buffer to net liquidity outflow(PLN bn)

Liquidity buffer Net liquidity outflow


• Average Net Stable Funding Ratio level exceeds 100%. Only two commercial banks reported

a ratio lower than 100%.

• It should be noted that NSFR has not been a binding norm yet.

120% 119% 120% 120% 120% 120%123% 124% 123% 124%

125% 125%

135%

100%

110%

120%

130%

140%

Jun 17 Sep 17 Dec 17 Mar 18 Jun 18 Sep 18 Dec 18 Mar 19 Jun 19 Sep 19 Dec 19 Mar 20 Jun 20

NSFR

1 164 1 172 1 185 1 202 1 225 1 243 1 249 1 285 1 299 1 339 1 3291 389

1 507

968 984 990 1 002 1 020 1 032 1 015 1 039 1 055 1 082 1 0631 116 1 118

0

200

400

600

800

1 000

1 200

1 400

1 600

Jun 17 Sep 17 Dec 17 Mar 18 Jun 18 Sep 18 Dec 18 Mar 19 Jun 19 Sep 19 Dec 19 Mar 20 Jun 20

Ratio of Available Stable Funding to Required Stable Funding (PLN bn)

Available Stable Funding Required Stable Funding


40.4

286.7

44.7

Financial sector



Commitments to lend Guarantee commitments

Off-balance-sheet commitments: August 2020Commitments extended (PLN bn)

38.4

70.9

2.5

50.5

1.510.3

Financial sector



Off-balance-sheet commitments: August 2020Commitments received (PLN bn)

Guarantee commitmentsCommitments to lend

69.5

187.6

6.0

50

100

150

200

250

300

350

400

Au

g 1

9

Sep

19

Oct

19

No

v 1

9

De

c 1

9

Jan

20

Feb

20

Mar

20

Ap

r 2

0

May

20

Jun

20

Jul 2

0

Au

g 2

0


Off-balance-sheet commitments: Commitments extended(PLN bn)

50

100

150

200

250

300

Au

g 1

9

Sep

19

Oct

19

No

v 1

9

De

c 1

9

Jan

20

Feb

20

Mar

20

Ap

r 2

0

May

20

Jun

20

Jul 2

0

Au

g 2

0


Off-balance-sheet commitments: Commitments received(PLN bn)


0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

-10%

-9%

-8%

-7%

-6%

-5%

-4%

-3%

-2%

-1%

0%

Au

g 1

5

Oct

15

Dec

15

Feb

16

Ap

r 1

6

Jun

16

Au

g 1

6

Oct

16

Dec

16

Feb

17

Ap

r 1

7

Jun

17

Au

g 1

7

Oct

17

Dec

17

Feb

18

Ap

r 1

8

Jun

18

Au

g 1

8

Oct

18

Dec

18

Feb

19

Ap

r 1

9

Jun

19

Au

g 1

9

Oct

19

Dec

19

Feb

20

Ap

r 2

0

Jun

20

Au

g 2

0

annual change (12M) of loans volume (%) - left axis CHF loans volume (CHF bn) - right axis

Housing loans to households in CHF

0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

4.0

4.5

5.0

-400

-300

-200

-100

0

100

200

300

400

Au

g 1

5

Oct

15

Dec

15

Feb

16

Ap

r 1

6

Jun

16

Au

g 1

6

Oct

16

Dec

16

Feb

17

Ap

r 1

7

Jun

17

Au

g 1

7

Oct

17

Dec

17

Feb

18

Ap

r 1

8

Jun

18

Au

g 1

8

Oct

18

Dec

18

Feb

19

Ap

r 1

9

Jun

19

Au

g 1

9

Oct

19

Dec

19

Feb

20

Ap

r 2

0

Jun

20

Au

g 2

0

annual change (12M) of loans volume (CHF bn) - left axis CHF/PLN rate (right axis)


410

415

420

425

430

435

440

445

450

92

94

96

98

100

102

104

106

Au

g 1

9

Sep

19

Oct

19

No

v 1

9

Dec

19

Jan

20

Feb

20

Mar

20

Ap

r 2

0

May

20

Jun

20

Jul 2

0

Au

g 2

0

Number and volume of CHF residential loans to households

number (ths)-right axis volume (PLN bn)-left axis

0%

10%

20%

30%

40%

50%

60%

0.0%

0.5%

1.0%

1.5%

2.0%

2.5%

3.0%

3.5%

4.0%

Au

g 1

5

Oct

15

De

c 1

5

Feb

16

Ap

r 1

6

Jun

16

Au

g 1

6

Oct

16

De

c 1

6

Feb

17

Ap

r 1

7

Jun

17

Au

g 1

7

Oct

17

De

c 1

7

Feb

18

Ap

r 1

8

Jun

18

Au

g 1

8

Oct

18

De

c 1

8

Feb

19

Ap

r 1

9

Jun

19

Au

g 1

9

Oct

19

De

c 1

9

Feb

20

Ap

r 2

0

Jun

20

Au

g 2

0

Quality and coverage ratio of CHF housing loans to housholds

Coverage ratio of stage 3 CHF housing loans to households – right axis

Share of stage 3 CHF housing loans in total CHF housing loans – left axis

Banking sector data August 2020...Slide 6 UKNF –Commercial and Specialist Banking Department• At...

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