BCP sets Asideโค โฌ92 Million for Polish bank Provisions
Warsaw, Poland – October 9, 2024 -โ Banco Comercial Portuguรชs (BCP) announced today it has allocated โฌ92 million in provisionsโค related to its Polish banking operations, a figure 43% higher than the provisions โmade โขin Juneโฃ 2024. The considerable increase reflects ongoing legal challenges and risk assessments โฃconcerning past lending practices.
The โprovisions cover โpotential โliabilities stemming from loans originally granted โขby Eurobank, which Bank Millennium – majority-owned by BCP – acquired inโ 2018. an additional โโฌ21 million is specifically earmarkedโ for loans transferred โfrom Eurobank during that acquisition. This move โขunderscores the financial impact of legacy โคissues โcontinuing to affect BCP’s โขinternational holdingsโ and highlights the complexities ofโ cross-borderโฃ banking acquisitions.
The โprovisions are a direct response toโค rulingsโข from the Tribunal de Justiรงa da Uniรฃo Europeia (Court of Justice of the European Union) regarding the fairness of certain loan contracts in Poland, particularly those denominated in foreign currencies. These rulings haveโ openedโ the door for borrowers โto challengeโฃ loan terms,perhaps leading to important โขrepayment obligations for banks.
Bank Millenniumโ is activelyโ addressing these challenges, and โBCP anticipates further developments inโ these cases will require continued monitoringโ and potential โฃadjustments โฃto its provisioning โlevels. The financialโฃ impact ofโฃ these provisions will beโ reflected โขin BCP’s upcoming financial โคreports.