PKO BP Estimates Q2 Legal Costs for FX Mortgage Loans at 1.25 Billion Zlotys

PKO BP estimates Q2 legal risk costs related to FX mortgage loans at 1.25 bln zlotys. The bank is one of Poland's largest banking groups, with a significant presence in retail and corporate banking. At the end of 2023, PKO BP managed PLN 399.2 bln in current deposits and PLN 245.8 bln in current credits. The bank primarily markets its products and services through a network of 1,231 branches located mainly in Poland.

PKO Bank Polski S.A. (PKO BP), one of Poland's largest banking groups, has estimated the legal risk costs related to foreign currency (FX) mortgage loans for the second quarter of 2025 to be 1.25 billion zlotys. This preliminary, unaudited figure reflects the bank's ongoing assessment of legal risk associated with mortgage loans denominated and indexed in foreign currencies [1].

PKO BP, with a significant presence in both retail and corporate banking, manages substantial financial assets. As of the end of 2023, the bank held PLN 399.2 billion in current deposits and PLN 245.8 billion in current credits. The bank's extensive network of 1,231 branches, primarily located in Poland, underscores its market reach and customer base [2].

The estimated legal risk costs stem from updates to the bank's legal risk assessment model. These updates include forecasts for the number of court cases, expected costs of settlement programs, and statutory interest accrued during disputes with clients. The NBP's recent rate cut to 5.25% has created a more accommodative monetary policy environment, which could influence future legal risk costs [3].

Investors and financial professionals should closely monitor these developments, as legal risk costs can impact the bank's overall financial performance. The upcoming earnings report for Flagstar Financial, Inc. (FLG) on July 25, 2025, will provide further insights into the company's financial health [4].

References:
1. [1] https://www.pb.pl/gielda/pko-bank-polski-s-a-szacunek-wplywu-kosztow-ryzyka-prawnego-zwiazanego-z-kredytami-hipotecznymi-denominowanymi-i-indeksowanymi-do-walut-obcych-na-wyniki-drugiego-kwartalu-2025-r-8977790
2. [2] https://www.open-conversations.org/handpicked-headlines-archive/pko-bank-polski-is-developing-an-innovative-system-of-value-added-non-banking-services-polish-platform-of-additional-services-available-via-open-api/
3. [3] https://www.ainvest.com/news/poland-rate-rollback-fixed-income-opportunity-policy-crosscurrents-2507/
4. [4] https://www.stocktitan.net/news/FLG/