Bank Polska Kasa Opieki Spółka Akcyjna (the “Bank") informs that the following events will be included in the consolidated financial results of Bank’s Group (the “Group”) for the first half of 2024 will include recognition of a provision for legal risk related to mortgage loans denominated in CHF in the gross amount of PLN 243 million. 

Additional provisions result from the update of the parameters of the calculation of the provision for the loans in question (the probability of losing the court disputes and the distribution of possible judgments) and reflect the current state of court decisions.

In addition, the Bank informs about the decision regarding:  

1)    a change in accounting policy regarding the recognition of legal risk related to mortgage loans denominated in CHF as a risk of a separate nature from credit risk, which results in a positive impact on the Group's equity in the amount of approximately PLN 87 million and a decrease in the value of the portfolio of non-performing loans ("NPL portfolio") by approximately PLN 2.0 billion. 
The change in the recognition of legal risk results from the observation of the legal environment and the established market practice in this area.

2)    a change in the accounting policy for the presentation of loan receivables acquired from Idea Bank S.A. ("IB") in such a way that the expected credit losses of this portfolio are presented net of settlements resulting from the integral guarantee received from the Bank Guarantee Fund, which results in a decrease in the value of the NPL portfolio by approximately PLN 0.7 billion, without affecting the level of equity and the Group's results. 

In the Bank's opinion, such a method of presentation better reflects the economic nature of the acquired loan portfolio together with the integral guarantee received in the process of acquiring IB.

Changes in accounting policy require the Group to recalculate and restate comparative data. 

Detailed information on the above events will be presented in the Interim Condensed Separate Financial Statements of Bank Pekao S.A. for the first half of 2024 and the Interim Condensed Consolidated Financial Statements of Bank Pekao S.A. Group for the first half of 2024, which are planned to be published on 8 August 2024.

Legal basis: Art. 17 of (1) MAR – inside information