BCP announced on Wednesday, In the CMVM Notice, that its Polish subsidiary Millennium Bank, which owns 50.1%, made provisions in the amount of 460.1 million zlotys (102.1 million euros) for legal risks related to the foreign currency mortgage loan portfolio. The subject of the controversy is the loans of the Swiss franc, which has already led to several lawsuits in Poland.
“The Executive Board of Millennium Bank informs that it has taken a decision to make provision in the accounts for the second quarter of 2021 in the amount of PLN 460.1 million for legal risks related to foreign currency mortgage loans created by Millennium Bank,” the statement notes.
Moreover, it notes that an additional provision of 53.6 million zlotys (11.89 million euros) will be made “for legal risks related to the credit portfolio established by the Eurobank, but without affecting the net result”.
“The provisions reflect the persistence of negative trends in court decisions, the entry of new lawsuits and changes in the bank’s risk assessment methodology,” the document asserts.
As a result of this level of provisions, “and despite the strong operating performance, the bank expects a negative net result in the second quarter of 2021,” he explains.
The statement adds that additional information about legal risks and second-quarter results will be published in Market Information on Results on July 26.
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