The banking sector has continued to fall in the first half of the year, driven down by the road building sector, where the slump is expected to deepen over 2012. Poland’s Financial Supervision Authority (KNF) expects the financial sector will see a substantial drop at the end of the year, when the result was said to be equal to the one the sector made in 2010. “It might not be a record-breaking year, as it was seen in 2011, though it will be comparable with 2010,” said Andrzej Jakubiak from the Polish Financial Supervision Authority. “If the quality of the loans given to the construction sector continue to worsen, the banks would have to update their write-offs, which could affect the results of the companies,” he added. It was agreed that the predicted decrease for 2012 profits would be kept secret, but according to the latest data, the Polish banks made a net profit of PLN 6.6bn over the first five month of the year, strengthening its capital base over the period.
