The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site. Please see our Subscription Terms and Conditions.


All material subject to strictly enforced copyright laws. © 2021 Euromoney, a part of the Euromoney Institutional Investor PLC.

Poland: Lonely Handlowy

No bank in Poland, it seems, wants to marry the acquisition-hungry Bank Handlowy, and the Polish treasury hasn't helped as matchmaker. But the once-proud foreign trade giant desperately needs a source of retail deposits. It missed out on Bank Pekao, and the smaller Bank Zachodni. What scraps are left that the foreigners haven't eaten? Oonagh Leighton reports

Back at the beginning of this decade, the future looked promising for Bank Handlowy, the Polish foreign trade bank which then enjoyed a virtual monopoly in corporate banking. Now it is looking rather less so, thanks to the increased foreign competition and Handlowy's failure to purchase any of the Polish banks including Bank Polska Kasa Opieki (Pekao) and Bank Zachodni which were recently up for sale.

According to Darius Gorski, analyst with Robert Fleming, the bank has lost more than half of its share of the corporate banking market since 1991. "In the early 1990s Handlowy was the flagship bank here with an 80% market share in corporate banking," he says. "They now have approximately 23% and are losing this to rivals."

Gorski says that Handlowy also has the slowest-growing balance sheet in Poland. Figures calculated using Polish accounting standards show it has gross profits for 1998 of Z465 million ($119 million) representing a fall of 46% on the previous year, while costs have crept up by 14% over the same period to reach Z532 million.

Its situation used to be very different. Until 1989 the bank had an enviable monopoly in foreign trade financing.

You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.

SUBSCRIBE ONLINE TODAY

Unlimited access to Euromoney.com and Asiamoney.com

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually

FREE 7 DAY TRIAL

Unlimited access to Euromoney.com and Asiamoney.com, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors

LOGIN NOW

Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree