mBank Q3 additional legal risk costs amount to PLN 952.8 mln; preliminary net result positive

Listed lender mBank's additional legal risk costs related to foreign currency loans recognized in the third quarter of 2024 amounted to PLN 952.8 million (EUR 222.6 mln). The preliminary net result for the period will be positive, the bank said in a market filing.

The bank wrote that the costs resulted mainly from the update of expected costs of the settlement program, updates to the forecast of the number of court cases and updates to the market parameters included in the model.

It added that the estimated preliminary net result for Q3 2024 is positive. At the same time, the bank informed that it saw continued positive results in the core business in the third quarter of 2024.

"mBank Group Tier 1 Capital Ratio and the Total Capital Ratio for Q3 2024 are expected to be considerably higher than the required level which for mBank Group amount to 9.1 percent for the Tier 1 capital ratio and 11.1 percent for the Total Capital Ratio. It is expected that surpluses above the capital requirements for Q3 2024 will reach above 4.0 percentage points over Tier 1 Capital Ratio and approximately 4.0 percentage points over Total Capital Ratio. The liquidity ratios significantly exceed the regulatory requirements," the bank wrote.

"The final value of costs of legal risk related to loans indexed to foreign currencies in the third quarter 2024 and financial results will be disclosed in the financial statements for the third quarter 2024 due to be announced on October 31, 2024," the bank added.

mik/ nl/

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