Bank Millennium decided to create a new one, based on the results of the second quarter of this year. provisions for legal risk related to foreign currency mortgage loans in the amount of PLN 460.1 million, the bank said. Due to provisions, the bank expects a negative net result in Q2 this year.
Additional provisions in the amount of PLN 53.6 million will also be created for the legal risk of the portfolio of mortgage loans granted by Euro Bank, however, they will not have any impact on the financial result, according to the banks announcement.
The bank reported that the provisions reflect the continuing negative trends in court rulings, the inflow of new lawsuits and the resulting changes in the bank’s risk assessment methodology.
As a result of such a level of provisions and despite good operating results, the bank expects a negative net result in the second quarter of 2021.
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
