Dear Sirs/Madams,
With rapidly falling inflation and the beginning of interest rate cuts by the National Bank of Poland, 2025 was a year of revival for the Polish economy, which has remained a growth leader in the European Union, despite numerous adversities. Poland’s GDP last year
grew 3.6% y/y, which made us stand out from the rest of the region. Poland joined the group
of economies with GDP exceeding USD 1 trillion.
Average annual inflation in Poland throughout 2025 was 3.6%, which means that it
remained at the same level as in 2024. In 2025, the highest inflation rate (HICP) among EU
countries was recorded by Romania (6.8%), Estonia (4.8%) and Hungary (4.4%).May 2025 saw
the beginning of the interest rate cuts’ process which led to a major decrease in the cost of
money in the economy. The reference rate was reduced by a total of 1.75 percentage points
and stood at 4% at the end of 2025, following six rate cuts. Last year was the third year in a
row when Polish currency appreciated vis-à-vis EUR and it certainly strengthened against USD
and GDP.
By all accounts, Poland should maintain its fast growth rate in 2026. The economic
growth should be higher than in the majority of the European Union member states and
countries of the region, while the inflation should remain below the NBP’s target for most of
the year. ING economists also assume further interest rate cuts, expected to reach 3.25% by
the end of 2026, and smooth financing of the record-high borrowing needs of the country.
The Polish economy should be primarily driven by investment projects financed from the EU
funds, as part of the expected growing withdrawals from Poland’s National Recovery Plan,
with continued solid growth of household consumption. There remains uncertainty resulting
from the unpredictable trade policy of the US and uncertainty as to the commodity prices in
view of multiple geopolitical tensions (Ukraine, Greenland and Iran).
Last year was a period of intense legal-, fiscal- and market changes for the Polish
banking sector. Banks faced growing fiscal pressure (changes in CIT), implementation of EU
regulations on operational security, ESG reporting, anti-money laundering or the use of
artificial intelligence. The benchmark reform and the replacement of WIBOR with POLSTR took
place in parallel. The gradual decline in the CHF-loan issue was another major factor
impacting the market in 2025, as it unlocked equity for lending in case of some institutions. It
is also worth noting greater activity of banks in the financing of defence modernisation. New
investors also appeared in the sector.
In 2025, the consolidated net profit of ING Bank Śląski Group was PLN 4,633 million vs
PLN 4,369 million in 2024. The Group increased its lending- and deposit portfolios while
maintaining a good quality of assets and its strong position in terms of equity and liquidity.
The share in corporate loan market stood at 11.9% (and remained unchanged y/y), and the
share in the market of loans for individual clients was 10.6% (+0.7 p.p. y/y); meanwhile, the
value of loans grew 8% from 2024 and reached PLN 181.2 billion. In 2025, the Group won
309,000 retail clients and 67,000 corporate clients. At the end of 2025, the Group served a
total of 4.7 million retail clients and 594,000 corporate clients. As at the end of 2025, the total
capital ratio was at a good and safe level of 14.98%. ING Bank Śląski Group remains one of the
most profitable banking businesses in Poland. In 2025, return on equity (ROE), upon
accounting for MCFH, was 20.8 percent vs 20.4 percent a year earlier.
In 2025, the Supervisory Board were involved in making decisions of fundamental
importance for the ING Bank Śląski Group. In November, the bank announced its new long-