PKO Bank Polski SA

01/31/2020 | Press release | Distributed by Public on 01/31/2020 13:01

Report no. 2/2020 – Recognition of legal risk of PKO Bank Polski S.A. related to FX mortgage contracts and early repayment of retail loans

Legal basis:

Article 17 clause 1 of the Market Abuse Regulation (MAR) - confidential information

Contents of the report:

The Management Board of PKO Bank Polski S.A. ('Bank') informs that on January 31, 2020 the Bank included in the financial statements the legal risk related to foreign currency mortgage contracts, as a result of which it charged the 4Q 2019 consolidated result od Bank's Group with the amount of PLN 446 million.

At the same time, the Bank informs that in connection with the judgment of the Court of Justice of the EU regarding the consumer right to reduce the credit cost in the event of early repayment before the deadline specified in the loan agreement, the negative impact of the recognition of early retail loan repayments on the Bank's Group gross result in the fourth quarter of 2019 amounted to 236 PLN million, of which PLN 178 million reduced net interest income, and PLN 58 million increased other operating expenses.