Bank Millennium is working intensively on analyzing the possibility of offering settlements to Swiss franc mortgage borrowers, as proposed by the chairman of the Polish Financial Supervision Authority (KNF), CEO Joao Bras Jorge informed The bank is currently conducting customer surveys in this area.
“The bank is currently conducting a survey among its clients. If a recommendation regarding the settlement program is ready, the management board will submit it for approval to the supervisory board and the general meeting of shareholders, taking into account the significance of such decision and its implications,” the CEO said at today’s general meeting of shareholders.
He indicated that at the end of 2020, foreign currency mortgage loans accounted for almost 20% of the bank’s loan portfolio, despite a gradual decrease every year.
“The bank monitors this portfolio, on the one hand actively offering – with success – to clients for several years the possibility of early repayment, partial repayment or conversion to a mortgage in PLN on favorable terms, and on the other hand, creating adequate provisions for potential legal risks” – he said.
As emphasized by the President, the key issues to be resolved are: a favorable opinion or at least no opposition from important public institutions; support for the implementation of the conversion program by the National Bank of Poland (NBP); the legal certainty of the settlement agreements that would be signed with borrowers; the level of financial impact before and after tax; as well as capital consequences, including regulatory adjustments to the level of capital requirements related to foreign currency mortgage loans.
“Additionally, it is worth mentioning the potential implications of the Supreme Court resolutions scheduled for April 13 and 15. Their outcome is unknown at this stage, but we trust in the justice of the Supreme Court. better situation than those who took out loans in zlotys “- emphasized Joao Bras Jorge.
The president said today that according to the preliminary forecast, the costs of the proposal concerning the possible signing of settlements with franchise holders under the procedure proposed by the chairman of the Polish Financial Supervision Authority will reach approx. PLN 5.1 billion before taxation. In February this year. the bank estimated these costs in the range of PLN 4.1-5.1 billion.
Bank Millennium is a nationwide universal bank operating under this brand since 2003. In 1992, the shares of the bank (then BIG SA) as the first financial institution – made their debut on the WSE. The strategic shareholder of Bank Millennium is Banco Comercial Portugues (Millennium bcp) – the largest commercial bank in Portugal. The bank’s total assets amounted to PLN 97.77 billion at the end of 2020.
Source: ISBnews and Bank Millennium
