Profil:
mBank SAmBank lender expects decline in CHF reserves; wants to maintain high pace of settlements
Listed unit of Germany's Commerzbank mBank assumes that it will make lower and lower provisions for its CHF loan portfolio, the next quarters will bring a decrease in the number of lawsuits in this area and the bank wants to maintain a high pace of settlements with borrowers, the board's deputy CEO for risk management Marek Lusztyn told a conference.
"We expect to see lower and lower write-offs in each subsequent quarter," Lusztyn said, adding that 2025 should be the last year with significant CHF legal risk provisions.
mBank reported that it saw a decline in the number of new and pending CHF legal cases in the third quarter.
"We assume that the decline will be a sustainable trend," Lusztyn said.
The number of new lawsuits in the third quarter fell to 1,259 from 1,485 in the second quarter. The bank said that 21 percent of the 19,509 CHF agreements that were subject to litigation at the end of the third quarter involved repaid loans.
The number of settlements with customers for foreign currency mortgages rose to 19,519. In the third quarter alone, the lender signed 2,503 settlements, up from 1,850 settlements in the previous quarter.
"(...) We are not holding back with the topic of settlements. The number of settlements clearly accelerated in the third quarter. All of our active borrowers received settlement proposals," Lusztyn said.
"Our ambition is to at least maintain this pace of settlements. We can maintain the value of 2,500 per quarter," he added.
mBank said on Thursday that it assumes that approximately 5,100 CHF borrowers, including 2,100 with active loans and 3,000 with repaid loans, will file a lawsuit against the bank in the future. At the same time, the lender assumes that some of these borrowers will reach a settlement.
The coverage of the CHF portfolio by provisions created for legal risk is 140 percent.
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