The situation of the Polish non-banking sector

Investment fund sector

In 2015 acceleration continued on the investment funds market. Investment funds assets increased by approx.. 20% y/y i.e. about 9 p.p. stronger than 2014. Net inflow of new funds was more than twice higher than in 2014. In 2015, the largest inflow in funds of net non-public assets was recorded. Net inflow of individuals was approx.. 40% lower than in 2014. Thus, this segment of customers lost dominant share in the market development of investment funds. Market of investment funds was affected by a weaker appetite risk from investors realized under variable conditions and the deteriorating situation on the Warsaw Stock Exchange (decrease of broad market index WIG y/y by 9.6% against a growth of 0.3% in 2014) and the volatility of yields on debt market, as well as the historically low level of key interest rates, which determines interest rates on bank deposits.

Under the influence of the economic downturn on the domestic stock market, the main market segments of investment funds in the second half of 2015 implemented a negative 12M rate of return. Thus, the investment fund market did not constitute an attractive alternative for bank savings.  

Open pension fund market

In 2015, the open pension fund market (OPF) remained under the influence of regulatory changes. OPF assets decreased by approx. 6.7% against a decline of over 50% in 2014, due to the transfer of funds from the OPF to the Social Insurance Entity (ZUS).

At the end of 2015, OPF assets fell to PLN 140.5 billion, it had a negative impact on the situation on Warsaw Stock Exchange. In the assets structure of OPF, Polish shares (at the end of 2015 its share amounted to 83%) had a dominant position. The situation on OPF market was positively influenced by the better situation on labour market. In 2015 the decrease in number of participants in the OPF was recorded in the amount of 90 thousand, to total number of 16.5 million.  

The lease market 

In 2015, the leasing market grew less rapidly than in 2014. The value of assets financed by leasing companies amounted to PLN 49.8 billion, with a growth rate of 16.3% y/y (against 21.3% y/y in 2014 under conditions favourable for regulatory solutions). The development of this market segment was supported by sustainable good economic situation in Poland, including the high investment activity of companies.

The growth of business investments was driven by stable economic situation of companies, a relatively high level of utilization capacity and relatively low cost of financing. The largest positive impact on the development of the leasing market had a leasing of passenger vehicles. The value of financed assets increased by 36.7% y/y (PLN 15.2 billion).

A significant increase y/y was noticed in the tractors leasing (30.2% y/y to PLN 6.7 billion) and the leasing of the machinery and equipment (11.7% y/y to PLN 15.1 billion), including in particular leasing of agricultural machines, machines for the food industry and machines for the production of plastics and metal processing machines. The structure of the lease continued to dominate leasing of movables at the continuing low proportion of real estate leasing (2.9%). 

The insurance market  

Assets of insurance companies at the end of the third quarter of 2015 increased by 1.3% y/y. In 2015, the financial condition of insurance sector has worsened. In the period of I-III quarter of 2015, the insurance market recorded a significant decline in net profit (-23% y/y).

Strong technical result also fell (-33% y/y), mainly due to a decrease as a result of investment activities. The stronger decline in the performance was recorded in non-life insurance and property insurance than life insurance. In the first three quarters of 2015 technical profit was lower by 22% and earnings by 11% than a year earlier in the life insurance sector, mainly due to deterioration of results in the life insurance and unit-linked insurance. Department of non-life insurance and property insurance recorded a net profit decrease by 34% and the technical result by 60%, which was mainly due to motor insurance.  

The factoring market

In 2015 factoring market continued to develop dynamically. The turnover of companies associated in the Polish Factors Association increased by 17.4% y/y (growth, such as in 2014), reaching a value of 134.3 billion PLN. The number of clients of factoring companies increased by 12% y/y to 7.1 thousand people. The number of financed invoices increased by more than 20% y/y to 6.6 million. Average value of invoices presented to maturity decreased.

In the 2015 export factoring developed the most dynamically (26.8% y/y). The share of non-recourse factoring in the overall turnover of factoring companies for the first time since 2009, surpassed the share of non-recourse – increased to 51%.