Cost of legal risk related to foreign currency mortgage loans in Q3 2022, settlement program with the clients and absence of dividend from 2023 profit
Contents:
"3. INFORMATION ABOUT THE ENTITY
4. SIGNATURE OF PERSONS REPRESENTING THE COMPANY
| POLISH FINANCIAL SUPERVISION AUTHORITY | ||||||||||||
| REPORT No | 48 | / | 2022 | |||||||||
| Date of issue: | 2022-09-27 | |||||||||||
| Short name of the issuer | ||||||||||||
| mBank | ||||||||||||
| Subject | ||||||||||||
| Cost of legal risk related to foreign currency mortgage loans in Q3 2022, settlement program with the clients and absence of dividend from 2023 profit | ||||||||||||
| Official market - legal basis | ||||||||||||
| Art. 17 ust. 1 MAR - informacje poufne. | ||||||||||||
| Contents of the report: | ||||||||||||
| Cost of legal risk related to foreign currency mortgage loans in Q3 2022, settlement program with the clients and absence of dividend from 2023 profit The Management Board of mBank S.A. (the "Bank") informs that in connection with the decision taken on 27 September 2022 by the Bank, the cost of legal risk related to foreign currency mortgage loans recognized in Q3 2022 amounted to PLN 2 336 million. The increase of the cost of legal risk is mainly due to changes in assumptions regarding the forecasted court scenarios, as well as the size of the borrower population which in the opinion of the Bank will file a lawsuit or settle in the future. As a consequence the total value of provisions created for legal risk related to foreign currency mortgage loans as of 27 September 2022 will amount to PLN 6 803 million. Moreover, the Bank's Management Board informs that on 26 September 2022 the Management Board and Supervisory Board decided that the Bank will launch a settlement program directed to CHF mortgage loan borrowers. The Bank intends to start the program in October 2022. Due to the additional provisions for legal risk and the credit holidays, about which the Bank informed in the stock exchange report dated 15 July 2022, mBank Group’s net result in 2022 will be negative. Thus, the Management Board assumes no dividend payment from the profit earned by mBank S.A. in 2023, in accordance with the resolution of the Management Board dated 27 September 2022 on Capital Management Policy of mBank Group regarding changes to the Dividend Policy. The Management Board of the Bank presented the above resolution to the Supervisory Board of the Bank for approval. The capital ratios of mBank Group remain above the capital requirements of 10.64% for the Tier 1 Capital Ratio and 13.17% for the Total Capital Ratio. The liquidity ratios remain significantly above the regulatory requirements. The consolidated quarterly report for the third quarter of 2022 will be published on 8 November 2022. | ||||||||||||
INFORMATION ABOUT THE ENTITY >|>|>|
| SIGNATURE OF PERSONS REPRESENTING THE COMPANY | |||||
| Date | Name | Position / Function | Signature | ||
| 2022-09-27 | Cezary Stypułkowski | Prezes Zarządu | |||
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