Global Bank Equity Specialist, Creative Portfolios

Paul Hollingworth

Global Bank Equity Specialist

Creative Portfolios

Thematic (Sector/Industry)

Poland Financials / Thematic (Sector/Industry)

We keep waiting for a turn in the fortunes of Polish banks in the form of trend change.But the gradual erosion in the overall Banking System, coincides with a mediocre performance of the main listed banks lately, especially in reduced Profitability. This key variable will not be helped by the recent reduction in interest rates to almost zero.There is, as elsewhere, quite a lot of quality variability within the system though some of the risks are shared, as happens, across the landscape.Valuations have come down in some cases a fair way and are in close proximity to the regional median. By European standards, the system may not appear as challenged as some peers, but there are better opportunities for GEM investors.

We keep waiting for a turn in the fortunes of Polish banks in the form of trend change.But the gradual erosion in the overall Banking System, coincides with a mediocre performance of the main listed banks lately, especially in reduced Profitability. This key variable will not be helped by the recent reduction in interest rates to almost zero.There is, as elsewhere, quite a lot of quality variability within the system though some of the risks are shared, as happens, across the landscape.Valuations have come down in some cases a fair way and are in close proximity to the regional median. By European standards, the system may not appear as challenged as some peers, but there are better opportunities for GEM investors.

Poland Banks: Not yet Much to Write Home About