In October 2024, compared to October 2023, banks granted fewer loans to micro-enterprises (-6.7%) and for a lower value (-13.5%).
Loan Sales to Micro-Entrepreneurs by Credit Product
In numerical terms, banks granted fewer of all types of loans: investment (-43.5%), working capital (-17.3%) and current account (-3.1%). In terms of value, two types of loans recorded negative annual dynamics: working capital (-30.7%) and investment (-6.8%). A small increase applied to current account loans (+2.3%).
Between January and October 2024, compared to the same period last year, banks granted fewer loans to microenterprises (-3.4%) and for a lower amount (-0.8%). The only positive dynamic in this period, but only in terms of value (+15.0%), was investment loans. Interestingly, investment loans also had the highest negative dynamic in terms of number (-28.6%). This means that if an investment loan is taken out, it is for a higher amount.
Both in numerical and in value terms, negative dynamics were recorded by current account loans, respectively (-10.2%) and (-7.5%) and working capital loans (-6.2%) and (-6.9%).
Credit Portfolio Quality for Micro-Entrepreneurs by Credit Product
The October 2024 reading of the Credit Quality Index for microentrepreneurs was 5.07% in terms of value. It is therefore still at a safe, acceptable level. The product quality indices in October 2024 were as follows: investment loans 2.92%, current account loans 4.05%, and working capital loans 8.02%.
In October 2024, compared to September 2024, the overall Quality Index improved (decreased) by (-0.44).
Over the course of 12 months, compared to October 2023, the overall Index also improved (decreased) by (-0.60). Over a 12-month period, the working capital loan Index improved the most (decreased) (-1.74). The quality indices for investment loans (-0.24) and current account loans (-0.20) also improved.
Loans Sales to Micro-Entrepreneurs by Sectors
Of 12.4 thousand loans granted to microenterprises in October, 6.1 thousand were drawn by service companies (49.1%) and 2.8 thousand by trade companies (22.7%). Thus, these two sectors account for 71.8% of all loans granted in October 2024.
Out of the total amount of PLN 1.79 billion, banks granted PLN 723 million (40.4%) to microentrepreneurs engaged in service activities and PLN 455 million (25.4%) to companies in the trade sector. Financing these two sectors in October 2024 accounted for 65.8% of the total value of loans given to microenterprises.
In October 2024, the negative year-on-year dynamics of the number of loans granted concerned financing all four sectors: trade (-12.0%), production (-8.1%), construction (-5.1%) and services (-4.4%). In value terms in October 2024, compared to October 2023, negative dynamics concerned loans to companies from three sectors: trade (-34.9%), production (-26.0%), and services (-1.7%). Only the construction sector recorded an increase (+9.4%).
In January-October 2024 compared with the same period last year, we see a negative dynamic in the number of loans granted in all four sectors. The highest negative dynamic is in trade (-7.0%), and the lowest in services (-1.1%). In contrast, the dynamic in terms of value fares somewhat better. It is positive in one industry – services (+4.8%). Negative dynamics have occurred in three sectors, with the highest in the case of trading companies (-6.8%).
Credit Portfolio Quality for Micro-Entrepreneurs by Sectors
According to the readings of the Quality Index, loans people had the most trouble repaying (highest level of the index) in October 2024 were by production companies with a value of 5.21% and service companies 5.19%. The best (lowest) reading in October was recorded by the Quality Index for companies in the construction sector at 4.63%. Compared to October 2023, the Index improved (dropped) in all sectors, most notably in production (-0.78).
Source: https://ceo.com.pl/rynek-kredytow-dla-mikroprzedsiebiorcow-w-pazdzierniku-br-15803
