Banking sector's net profit down 48.5 pct y/y in Q1 – national bank

Leszek Szymański/PAP

The net profit of the Polish banking sector amounted to PLN 1.46 bln (EUR 320 mln) in January-March 2020, which means that it dropped 48.5 pct year on year, the National Bank of Poland (NBP) has reported.

In March 2020 alone, the sector's net loss amounted to PLN 307 million (EUR 67.4 mln), whereas a year ago the profit was PLN 1.719 million (EUR 377 mln).

Total net operating income in the period January-March 2020 amounted to PLN 17.38 billion (EUR 3.9 bln), which meant a drop of 0.7 pct y/y. Administrative expenses were at the level of PLN 10.1 billion (EUR 2.2 bln), and rose by 0.3 pct y/y.

Write-offs amounted to PLN 3.2 billion (EUR 702 mln) in the first quarter, an increase of 53.8 pct y/y.

In March alone, write-offs amounted to PLN 1.93 billion (EUR 423.5 mln), while in the previous year they stood at PLN 772 million (EUR 169.4 mln).