Profil:
Bank Pekao SAPekao lender to set up provision for legal risk of CHF loans of PLN 370 mln in Q4 ‘24
Listed lender Pekao will set up a provision for legal risk of CHF foreign currency mortgage loans of PLN 370 million (EUR 86.8 mln) in its Q4 ‘24 results, the bank said in a market filing.
The bank said the provision is mainly due to an updated forecast of a future inflow of lawsuits from borrowers. It also recognised a deferred tax asset of PLN 103 million (EUR 24.2 mln), resulting from expected cancellations relating to CHF foreign currency mortgage loans.
The Bank also announced a change in the presentation in the financial statements of interest accrued and recognised in the gross carrying amount of impaired assets acquired or self-generated.
This change has the effect of reducing the value of the NPL portfolio by approximately PLN 0.8 billion (EUR 187.7 mln), but is without impact on the level of consolidated capital and the consolidated results of the group.
"Previously, the group recognised contractual interest in the gross carrying amount, accordingly including such accrued interest in the calculation of expected credit losses in the statement of financial position. Following the change in presentation, the group recognises in the gross carrying amount the interest accrued on the carrying amount, adjusted for the original credit risk assessment of the exposure at the time of initial recognition," the filing stated.
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