Millennium Bank, owned by BCP, made provisions again in the third quarter, this time amounting to 447 million zlotys (91.90 million euros at the current exchange rate), to protect against risks related to foreign currency loans. In addition, it expects negative results in the third quarter, according to the statement sent to the Polish financial regulator.
Management of Millennium Bank, which is 50.1% owned by the Portuguese bank, expects – as a result of this level of provisioning – a “negative net result in the third quarter of 2022”. The financial institution asserts that this period “was the sixth consecutive quarter in which the number of friendly agreements exceeded the 2000 threshold and exceeded the number of new lawsuits filed against the bank.”
The institution also explains that this value reflects “the direction followed in judicial decisions, the entry of new cases and the implications of the methodology for assessing the risks of cases incurred by the bank.”
The Polish bank adds that as of September 5.27 billion zlotys were recorded in provisions (about 1 billion euros).
In the statement, Millennium Bank also reported that 51 million zlotys (10.50 million euros) were set up to protect the risks arising from the Eurobank credit, which the Chinese central bank has held since 2019 “but without any impact on net results”.
Foreign currency credits (which Millennium Bank stopped giving in 2008) have led to provisions being made since 2019, the year that The European Court of Justice ruled Clients of Polish banks can ask the courts to convert Swiss franc mortgage loan agreements into local currency.
The last time the Polish Bank announced the Constitution of Provisions was in July. At that time, Millennium Bank announced that it held 467.4 million zlotys to protect the bank’s risk, in addition to 48 million zlotys to protect the risk of the Eurobank.
Millennium Bank will report third-quarter results on October 24.
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