Bank Millennium increased provisions for CHF loans, reduced cost of loan vacations

by   CIJ News iDesk III
2023-01-05   09:26

Bank Millennium has decided to make provisions for the legal risk of foreign currency mortgage loans granted by the bank, in the amount of PLN 475 million, to be charged to Q4 2022 results, Millennium said. In addition, provisions in the amount of PLN 26 million were set up for legal risk of the portfolio of mortgages granted by the former Euro Bank, however they will not affect the financial result.

The provisions reflect trends in legal jurisprudence, the influx of new court cases and the resulting implications for the bank's legal risk assessment methodology, the bank explained.

As a result, the carrying value of provisions for this risk at the end of December 2022 reached approximately PLN 5,439 million (of which PLN 5,028 million for the bank's loan portfolio), the bank announced.

In addition, the Bank said it has reviewed the actual cost and use of credit vacations in the second half of 2022 by eligible holders of mortgages in Polish currency, as well as the analysis of currently submitted requests to suspend repayments of mortgages granted in Polish currency in 2023.

As a result, the estimated total cost of credit vacations has been reduced to PLN 1,325 million at the consolidated level (PLN 1,292 million at the individual level). The cost reduction of PLN 99 million at the consolidated level (PLN 93 million at the standalone level) will have a positive impact on Q4 2022 results, the bank further announced.

More information on these factors and preliminary financial results for Q4 2022 will be made public in a current report scheduled for publication on January 31, 2023.

Source: Bank Millennium and ISBnews