BCP’s Polish Bank Announces New Constitution With Provisions Of 152 Million – Banca & Financeira

Millenium Bank – a Polish entity 50.1% owned by BCP – announced that it accounted for another 680 million zlotys in provisions in preliminary results for the second quarter, after a decision Court of Justice of the European Union (CJEU) on mortgages denominated in Swiss francs. The information was transferred by the bank to the market regulator in Poland.

This amount, which equals 152.5 million euros, means that the total accumulated provision, which includes 820 million zlotys in the first quarter, is 1.5 billion zlotys, or 336 million euros.

In addition, the document stated “38 million zlotys [equivalente a 8,5 milhões de euros] in provisions against legal risks deriving from the loan portfolio created by the former Eurobank “, which was acquired at the same time, in 2019, by Millennium Bank. These estimates take into account the unfavorable decision of the CJEU which considered that, after the cancellation of Because the contract contains unfair terms, it does not violate European Union (EU) law for these customers to seek compensation beyond the repayment of the monthly installments paid.i.e., customers do not have to pay interest on these credits, which were canceled by the courts.

On the other hand, if the bank demands compensation of this magnitude, it is violating the directive with unfair contractual terms.

In light of this decision, the financial institution removed from the legal risk provisions methodology “the possibility of obtaining a reward for the use of the capital it provided.” Despite making higher provisions, the Bank expects to deliver positive results from the “core” activity in the second quarter of the year and, accordingly, positive accounts also in the first half of 2023.

They further clarified that “the final amounts of legal provisions in the financial results for the first and second half of 2023 will be disclosed in the first half report due on July 26, 2023.”

On the stock exchange, Bank Millenium fell 1.83% to 4.82 zlotys, while BCP followed the trend recorded throughout Friday morning and rose 2.36% to 0.2214 €.