According to data from the Polish Central Bank, the impaired loan portfolio increased marginally to PLN 71.2bn in October from PLN 71.1bn in September. The impaired loan ratio came in at 8.8% in October, stable compared to September and up from 8.3% reported in the same period last year. Both the corporate sector impaired loan ratio (11.3%) and the retail sector impaired loan ratio (7.5%) remained stable compared to the September data. In the retail segment the continuation of trends was reported with a deteriorating mortgage portfolio (2.7%) and an improving consumer portfolio (17.8%). Our view: We see the news as neutral as it simply confirms trends that have been visible for some time now. We are not overly optimistic about the stabilization of the ratio in the month ahead, thus we expect the continuation of mounting NPLs at least until the end of 1H13. We expect the news to have a neutral trading impact.