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Banks Under Pressure to Follow Mbank in Boosting Legal Provisions for FX Loans

POLAND

LOCAL NEWS

  • Mbank's decision to boost provisions for legal risk from CHF-mortgages by record quarterly number of 439.5m zloty
  • shows pressure on other lenders coming from unfavorable court verdicts, and may be followed by PKO, Millennium & Santander
  • with scale depening on each P&L.
  • MBank is the 2nd lender after BNP Polish unit that set 4Q provisions for FX-loans higher than total write-offs for 9M of 2020, a scale above expectations.
  • Analysts expect it to wipe out MBank's 4Q profit, but will allow to keep a slight profit for FY2020 - bbg
  • NBP holds its first bond-buying auction of the year and presents final bond supply data for 2nd regular auction this month on Friday, planned at 5-9b zloty.
MNI London Bureau | +44 020-3983-7894 | murray.nichol@marketnews.com
MNI London Bureau | +44 020-3983-7894 | murray.nichol@marketnews.com

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