Millennium expects a negative result in Q3. from PLN 451.8 million in provisions for CHF
Bank Millennium has decided to create a provisions for legal risk related to foreign currency mortgage loans in the amount of PLN 451.8 million, the bank said. Due to provisions, the bank expects a negative net result in Q3 this year.
The Management Board of Bank Millennium [...] decided to create, against the results of the third quarter of 2021, provisions for legal risk related to foreign currency mortgage loans granted by the bank, in the amount of PLN 451.8 million. Additional provisions in the amount of PLN 74.3 million will be also created for the legal risk of the portfolio of mortgage loans granted by Euro Bank, however, they will not have an impact on the financial result, the bank announced.
The provisions reflect the continuing negative trends in judicial decisions, the inflow of new court cases and the resulting changes in the bank's legal risk assessment methodology.
As a result of such a level of provisions, despite good operating results, the bank expects a negative net result in the third quarter of 2021, the bank further commented.
More information on the legal risk and financial results for the third quarter of 2021 will be made public in the interim report, the publication of which is scheduled for October 26, 2021.
Source: Millennium bank and ISBnews