Bank Pekao allocates PLN 370 million for CHF loan risks in Q4 2024 results

Bank Pekao has announced the allocation of PLN 370 million as a provision for legal risks related to foreign currency mortgage loans in Swiss francs (CHF) in its consolidated financial results for the fourth quarter of 2024. This provision reflects the anticipated impact on both gross and net financial outcomes, stemming primarily from a forecasted increase in borrower lawsuits.

Additionally, the bank included a deferred income tax asset of PLN 103 million, linked to expected cancellations associated with CHF-denominated mortgage loans.

Bank Pekao also introduced a change in how accrued interest is presented in its consolidated financial statements. Previously, the group recognized gross contractual interest on the balance sheet, factoring accrued interest into expected credit loss calculations. Under the new approach, accrued interest will be adjusted for the initial assessment of credit risk at the time of the loan’s origination. This change reduces the non-performing loan (NPL) portfolio by approximately PLN 0.8 billion, without affecting the group’s consolidated capital or financial results.

The bank’s consolidated financial report for 2024 is scheduled for release on 27 February 2025.

Bank Pekao, a key member of the PZU Group, is among the largest financial institutions in Central and Eastern Europe. Listed on the Warsaw Stock Exchange since 1998, the bank reported total assets of PLN 305.27 billion at the end of 2023.

Source: Bank Pekao and ISBnews