Dhe legal disputes over Swiss franc loans pushed Commerzbank’s Polish subsidiary M-Bank into the red in the third quarter. The loss of M-Bank, which is almost 70 percent owned by Commerzbank, decreased to 83 million zloty (18.6 million euros) in the period from July to September after 2.28 billion zloty a year ago, as it announced on Tuesday.
Like other Polish credit institutions, M-Bank had provided thousands of real estate financiers with low-interest loans in Swiss francs. But when the franc appreciated to the zloty, making loan repayment more difficult, many Poles filed suit against the lenders with the backing of the government. Since 2018, M-Bank has set aside 10.7 billion zlotys (2.4 billion euros) in provisions for these legal risks. In the third quarter of 2023 alone, 1.08 billion zloty were added after 2.31 billion zloty a year ago.
2023-10-31 19:26:08
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