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Decrease in Value and Number of Loans Granted to Micro-Enterprises – Data for May 2024

FINANCEDecrease in Value and Number of Loans Granted to Micro-Enterprises - Data for May 2024

In May 2024, compared to May 2023, banks granted fewer loans to micro-enterprises (-8.1%) and for a lower total amount (-5.0%).

In terms of numbers, banks issued fewer of the three main types of loans for micro-enterprises: investment loans (-43.3%), current account loans (-16.6%), and working capital loans (-6.0%). A negative annual dynamic was also observed in terms of value: investment loans (-25.6%), current account loans (-11.6%), and working capital loans (-2.1%).

In the first five months of 2024, compared to the same period last year, banks granted more loans to micro-enterprises (+1.2%) and for a higher amount (+3.3%).

Positive dynamics from January to May this year were observed only for working capital loans, both in numerical terms (+3.5%) and in value terms (+4.3%). However, investment and current account loans had a negative dynamic in numerical terms, at (-25.3%) and (-11.3%) respectively. In value terms, investment loans showed positive dynamics (+8.4%), while current account loans ended May with a negative dynamic (-8.0%).

Quality of loan portfolios for micro-enterprises by loan products

The May reading of the BIK Quality Index for loans to micro-enterprises stood at 6.26% in value terms. It remains at a relatively safe, acceptable level.

Compared to April 2024, the overall Quality Index worsened (increased) by (+0.38), while over a 12-month period, i.e., compared to May 2023, the overall Index improved (decreased) by (-0.17).

Loans to micro-enterprises by sectors

Of the 12.2 thousand loans granted to micro-enterprises in May this year, 5.9 thousand were taken by service companies (48.8%) and 2.7 thousand by trade companies (22.5%). In total, 71.4% of the loans granted in May 2024 were for these two sectors.

Out of the total amount of PLN 1.755 billion, banks granted PLN 689 million (39.3%) to micro-enterprises in the service sector and PLN 447 million (25.5%) to companies in the trade sector. Financing these two sectors in May 2024 accounted for 64.7% of the total value of loans granted to micro-enterprises.

In May 2024, the negative year-on-year dynamic in the number of loans granted affected all four sectors: trade (-11.3%), construction (-9.9%), production (-9.5%), and services (-5.5%). In value terms, in May 2024 compared to May 2023, only loans for service companies showed a positive dynamic (+2.7%). Other sectors recorded negative dynamics: production (-10.4%), trade (-8.6%), and construction (-8.2%).

Quality of loan portfolios for micro-enterprises by sectors

According to Quality Index readings, the worst-performing loans in May 2024 (highest index value) were those taken by construction companies, with an index value of 6.47%, and service companies, with an index value of 6.43%. The best-performing loans (lowest index value) in May this year were those in the trade sector, with an index value of 6.11%. Compared to May 2023, the Index improved (decreased) in two sectors: trade (-0.40) and services (-0.21). It worsened (increased) in production (0.25%) and construction (+0.03).

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