The cost of settlements with borrowers who have an active loan indexed to CHF would amount to PLN 2.97 billion for mBank, assuming the application of the same principles as in the pilot of these settlements, launched in December last year, the bank said.
On December 6, 2021, mBank launched a pilot program of settlements for borrowers who have an active loan indexed to CHF. The completion of the pilot project is planned for the end of the first quarter of 2022. The offer presented in the program consists in converting a CHF-indexed loan into a PLN loan with the simultaneous cancellation of a part of the loan balance. As in the proposal of the chairman of the Polish Financial Supervision Authority (KNF), this part is the difference between the current balance of the loan indexed in PLN according to the average exchange rate of the National Bank of Poland and the hypothetical balance that would have existed if the loan had been originally drawn in PLN, as indicated in the report.
In the bank’s pilot, this difference is divided equally between the parties to the contract, and the bank offers to write off the loan balance in the amount equal to the part of the difference. could have predicted at the time of its conclusion. This would constitute half of the benefits that would result for clients from the proposal of the chairman of the Polish Financial Supervision Authority, according to the report.
The offer was addressed to 1,278 active contracts, which, in the opinion of mBank, is a representative sample of the entire portfolio of active CHF-indexed loans.
The purpose of the pilot program is to verify the attractiveness of the offer and the process proposed by the bank and to collect feedback in this regard from the clients covered by the pilot program. The maximum, hypothetical cost of the program would be PLN 2.97 billion, assuming that the program would be offered to all clients with active loans and all these customers would accept the conditions described above.
The carrying amount of mortgage and housing loans granted to individuals in CHF as at December 31, 2021 amounted to PLN 9.1 billion (i.e. CHF 2 billion), compared to PLN 12.3 billion (i.e. CHF 2.9 billion) at the end of 2020 year. In addition, the value of the portfolio of loans granted in CHF, which had already been fully repaid as at December 31, 2021, amounted to PLN 7.3 billion (December 31, 2020: PLN 6.8 billion).
mBank is one of the leading universal commercial banks in Poland. The strategic shareholder of mBank is the German Commerzbank. The bank was listed on the WSE in 1992. The bank’s total assets amounted to PLN 199.54 billion at the end of 2021.
Source: mBank and ISBnews
