Polish Bank at Last Reckons With Mortgage-Loan Disaster
- Commerzbank and ING units increase FX mortgage provisions
- Local banks seen raising write-offs amid unfavorable verdicts
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Poland’s MBank SA and ING Bank Slaski SA are recognizing potential losses from legal battles over Swiss-franc loans, moving the industry closer to resolving a dispute that has long clouded its prospects.
The unit of Commerzbank AG set aside a record 439.5 million zloty ($118 million) to cover risks from its foreign-currency mortgages in the final three months of 2020, likely putting the lender in red for the quarter. ING Slaski followed with a 250 million zloty quarterly hit, boosting provisions to a whopping 35% of its non-zloty loans, roughly four times more than its competitors.