Dear Ladies and Gentlemen,
Last
year
was
marked
by
dynamic
changes
in
the
Polish
economy.
We
experienced
high
inflation,
a
shock
interest
rate
cut
and
a
strong
appreciation
of
the
Polish
zloty.
The
parliamentary
elections
in
October
were
a
major
event
of
the
past
year.
In
autumn,
Poland
saw
a change of government and parliamentary majority after eight years.
Unfortunately,
the
number
of
conflicts
in
the
world
has
not
decreased,
which
is
visibly
affecting
the
markets.
Even
at
the
beginning
of
the
year,
it
seemed
that
this
would
be
the
year
of
the
end
of
Russian
aggression
against
Ukraine,
but
the
reality
has
turned
out
to
be
much
more
brutal
and
the
prospects
for
its
end
are
remote.
Despite
the
unfavourable
circumstances
,
the
Polish
economy
avoided
recession.
According
to
preliminary
data
from
the
Central
Statistical
Office,
Poland’s
GDP
grew
by
0.2%
in
2023,
with
the
recovery
in
consumption
likely
to have slowed down the last quarter of the previous year.
Certainly,
high
inflation
has
significantly
affected
us
in
Poland
and
numerous
other
countries
worldwide.
In
our
country,
inflation
reached
its
highest
point
in
February.
18.4%
is
a
level
last
observed
in
the
late
1990s.
Inflation
fell
sharply
in
the
following
months,
to
reach
6.2%
in
December.
In
2023,
inflation
averaged
11.4%,
showing
a
decrease
from
the
14.4%
recorded
a
year
earlier.
With
inflation
falling,
the
Monetary
Policy
Council
decided
to
start
a
cycle
of
interest
rate
cuts
.
It
started
with
a
small
earthquake,
with
rates
falling
by
75bps
in
September.
That
was
the
first
interest
rate
cut
since
May
2020.
In
October,
the
MPC
cut
rates
by
another
25bps.
During
the
meetings
in
November
and
December,
the
MPC
decided
to
leave
the
reference rate at 5.75%.
In
the
eurozone,
HICP
inflation
slowed
down
from
11.5%
to
around
3%,
and
in
the
US,
CPI
fell
from
9.1%
to
3.1%.
While
those
readings
are
still
far
too
high,
especially
in
Poland
and
other
countries in our region, they are at least close to the nominal interest rates of central banks.
In
2023,
the
Polish
zloty
had
strengthened
significantly
against
the
major
currencies,
as
had
all
currencies in the region, limiting the profitability of exports.
The
banking
sector
faced
legal-,
regulatory-
and
fiscal
challenges,
such
as
provisions
related
to
CHF
loans,
contributions
to
the
Bank
Guarantee
Fund
and
the
tax
on
assets.
Despite
facing
numerous
challenges,
the
technological
layer
of
Polish
banking
remains
among
the
most
modern
in
Europe.
In
addition,
it
is
highly
efficient,
with
a
cost/income
ratio
structurally
in the region of 50%.
Despite
the
volatile
economic
and
regulatory
environment,
the
ING
Bank
Śląski
S.A.
Group
has
consistently
pursued
its
business
strategy.
Its
steadfast
objective
is
to
expand
its
scale
by
attracting
new
clients
and
providing
convenient,
modern
solutions
and
products
tailored
to
meet
the
diverse
needs
of
clients
across
all
business
segments.
In
2023,
the
ING
Bank
Śląski
Group’s
consolidated
net
profit
amounted
to
PLN
4,440.9
million,
compared
to
PLN
1,714.4
million
in
2022.
The
Group
increased
its
loan-
and
deposit
portfolio
while
maintaining
good
asset
quality
and
a
strong
capital-
and
liquidity
position.
The
corporate
segment’s
share
of
loans
was
11.9%
(-0.7
p.p.
y/y),
and
the
share
in
the
market
of
loans
for
individual
clients
stood
at
9.4%
(+0.2
p.p.
y/y).
Meanwhile,
the
value
of
loans
compared
to
2022
increased
by
1%
to PLN 158.3 billion.
