Bank Handlowy conducted an impairment test based on the International Accounting Standard 36, which resulted in the recognition of a write-off reducing goodwill by PLN 215 million in the part related to the retail banking segment. The total amount of the write-off will be charged to the financial results in the fourth quarter of 2020, the bank said.
“The main factor influencing the write-off are the effects of the COVID-19 pandemic, in particular the reduction of interest rates to a record low level, as well as the related significant deterioration of business conditions affecting the lower activity of retail customers” – the release reads.
The event is of a one-off nature and does not affect the liquidity position and solvency ratios, it was also emphasized.
Citi Handlowy was created from the merger of Bank Handlowy in Warsaw – the oldest commercial bank in Poland and Citibank (Poland) S.A. In addition to classic banking services, the offer of the capital group includes capital market services and products offered by a brokerage house and leasing products. The bank has been listed on the WSE main market since 1997. The bank’s total assets amounted to PLN 51.98 billion at the end of 2019.
Source: ISBnews
