Millennium Bank takes heavy loss provisions

Portugal-based Millennium Bank, whose largest shareholder is Chinese Fosun International, has made provisions of 661.8 million zlotys (about 144.5 million euros) to protect against risks related to foreign currency loans and expects negative results in the fourth quarter of 2021.

The information was sent to the Securities Exchange Commission (CMVM) by the institution led by Miguel Maya.

The management of Millennium Bank, which is 50.1% owned by the Portuguese bank, admits that as a result of this level of provisions, it expects “a net negative result in the fourth quarter of 2021”. The bank explained that the deal “reflects the continuation of negative trends in court rulings, the introduction of new legal procedures and changes in the bank’s risk assessment methodology.”

In the same statement, Millennium Bank adds that Eurobank, which it has held since 2019, also made provisions of about 15 million euros, “but without any impact on the net results”.

Foreign currency credits (which Millennium Bank stopped giving in 2008) have led to judgments being drafted since 2019, the year that The European Court of Justice ruled Clients of Polish banks can ask the courts to convert Swiss franc mortgage loan agreements into local currency.

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