Shares in the bank fell significantly in after-hours trading.
(Photo: dpa)
Frankfurt The new year begins with bad news for Commerzbank. The institute announced on Friday evening that its Polish subsidiary mBank had to set aside a further 436 million euros because of the dispute over how to handle Swiss franc loans.
The result of Commerzbank will be charged in the corresponding amount. “Nevertheless, Commerzbank expects a positive consolidated result for the 2021 financial year,” said the Frankfurt financial institution.
The bank had recently emphasized several times that it would be back in the black last year – after a loss of EUR 2.9 billion in 2020. However, this forecast was subject to the proviso “that there would be no substantial change in the loan portfolio of mBank in Swiss francs”.
Investors reacted disappointed to the bad news from Poland. Commerzbank shares lost more than three percent in after-hours trading after ending trading down 1.8 percent.
Top jobs of the day
Find the best jobs now and
be notified by email.
Due to low interest rates in Switzerland, many Poles took out loans in Swiss francs to finance their homes. However, the national currency, the zloty, then lost a lot of value against the Swiss franc, which increased the burden on home builders.
Many borrowers then took action against Polish financial institutions because of possibly unlawful clauses. There are more than 10,000 lawsuits against mBank alone. The money house had therefore already increased its risk provision by a further 95 million euros in the third quarter.
After a decision by the highest Polish court on the subject had been postponed several times, the Polish financial regulator KNF advised financial institutions in the fall to seek out-of-court settlements with their customers.
mBank is open to all solutions, said Commerzbank CFO Bettina Orlopp in November. “We want to end this saga, but it has to be a reasonable ending.” Binding settlements would have to be found that all customers could accept and that would end the legal proceedings.
More: Commerzbank boss warns of growing risk of inflation – 2022 “challenging year” for his institute.