Getin Noble Bank has decided to create an additional portfolio provision for legal risk related to CHF-indexed mortgage and housing loan agreements in the amount of PLN 110 million, which will lower the bank’s result in the fourth quarter of 2020 in terms of consolidated and standalone, the institution said.
The bank emphasized that the above data would still be subject to final verification by an auditor. They may be changed by the end of the audit of the financial statements for 2020.
“The above decision, with the simultaneous reduction of own funds by another tranche of the amortization of the impact of the implementation of IFRS 9 in January this year in the amount of PLN 222 million and inclusion in the preliminary financial result of January this year. forced restructuring of banks and the provision for the quarterly contribution of the deposit guarantee scheme), resulted in a reduction of the total TCR capital ratio as at 31 January 2021 to a level below 8%, i.e. below the threshold resulting from Article 92 (1) (c) of the Regulation of the Parliament 575/2013 of the European Parliament and of the Council of 26 June 2013 on prudential requirements for credit institutions and investment firms (‘CRR Regulation’) (Pillar 1) “- reads the release.
According to the bank’s preliminary data, the level of the total TCR capital ratio as at February 12, 2021 was 7.5 percent, which means that it was 0.5 percentage points. below the threshold specified in Art. 92 sec. 1 lit. c) the CRR Regulation. The above calculation was made based on the best and most recent knowledge of the bank, also given.
“The Bank notes that the above-mentioned elements were decisive for the decrease in the level of the total TCR capital ratio, however, external factors, independent of the operating activities, also had a significant impact on the capital position of the Bank. The above group includes events that took place on space in 2020, resulting from the deterioration of market conditions due to the spread of the COVID-19 pandemic, including, in particular, interest rate cuts reducing the bank’s income potential, as well as the appreciation of the Swiss franc, visible compared to the level in the same period the previous one, which directly translated into an increase in the valuation of some of the bank’s risk-weighted assets “- we read further.
Getin Noble Bank emphasizes that it monitors the current economic situation on an ongoing basis and makes decisions aimed at the protection and safety of all its stakeholders, especially customers. As noted, the bank is actively taking steps to best adapt its operations to the changing environment and ensures that it will implement all necessary measures to improve capital ratios.
Getin Noble Bank was established as a result of the merger of Getin Bank and Noble Bank in 2010. It is controlled by Leszek Czarnecki and listed on the WSE.
Source: ISBnews and Getin Noble Bank
