Santander BP settlements, according to PFSA could amounts to approx. PLN 3.5 billion
The loss of the Santander Bank Polska Group in the event of the implementation of the proposal regarding the possible signing of settlements with Swiss franc borrowers under the procedure proposed by the chairman of the Polish Financial Supervision Authority (KNF) would amount to approximately PLN 3.5 billion, the bank said. On a standalone basis, the loss would amount to approximately PLN 2.7 billion.
"The Group estimated the potential impact of the solution consisting in entering into voluntary settlements in a broader dimension. Assuming that 100% of the current borrowers will convert as proposed by the chairman of the Polish Financial Supervision Authority, the group's loss would amount to approximately PLN 3.5 billion at the consolidated level. performed at the exchange rate of 4.15 PLN / CHF "- according to the annual report.
The proposal of the chairman of the Polish Financial Supervision Authority is currently being analyzed inside the bank and within a team of bank representatives. Consultations are also underway with the KNF and the Ministry of Finance, the bank said.
The bank plans to conduct tests of concluding this type of settlement in the first half of 2021. Depending on the test results, further steps are possible, such as a pilot on a selected sample of borrowers, and the overall result of the work will be a significant contribution to the decision to enter Due to the potential impact of the decision to enter into settlements on the financial situation of the group, the consent of the general meeting of shareholders will be required.
In the event of commencing settlements in a broader dimension, the group will take into account additional scenarios in the models for calculating provisions for legal risk and reflect the estimated impact on the level of these provisions.
As of December 31, 2020, the Santander Bank Polska Group is being sued in 899 cases concerning the reimbursement of part of the commission for granting a consumer loan, including 436 cases against Santander Consumer Bank and 463 cases against Santander Bank Polska. Santander Bank Polska Group created provisions for these proceedings in the total amount of PLN 225,000, including provisions created by Santander Consumer Bank in the amount of PLN 76 thousand. PLN and provisions of Santander Bank Polska S.A in the amount of PLN 149,000, was announced in the report.
In December 2020, the chairman of the Polish Financial Supervision Authority presented a proposal for banks to conclude voluntary agreements with borrowers, under which CHF-based loans would be subject to retrospective settlement, such as PLN loans with an interest rate at WIBOR and an appropriate margin, the bank reminded.
Santander Bank Polska (formerly Bank Zachodni WBK) is one of the leading universal banks in Poland. Its shares are listed on the Warsaw Stock Exchange. The main shareholder of Santander Bank Polska is the Spanish Santander, the first bank in the euro area and the 11th largest bank in the world in terms of capitalization. Companies from the Santander Bank Polska Group offer, among others investment funds, insurance, leasing and factoring. The bank's total assets amounted to PLN 229.3 billion at the end of 2020.
Source: ISBnews and Santander BP