PKO Bank Polski has set aside 297 million PLN in the second quarter of 2026 to cover legal risks associated with its portfolio of foreign-currency-denominated and indexed mortgages.
The provision, disclosed in a regulatory filing, reflects the ongoing cost of managing litigation and regulatory scrutiny surrounding loans issued in Swiss francs and other hard currencies before the euro adoption era.
The charge directly impacts the bank’s quarterly net income, serving as a reminder that legacy currency loan portfolios remain a material risk factor for major Polish lenders.
While the volume of new claims has declined in recent years, the legal and financial tail risks persist, requiring consistent provisioning to protect capital buffers.
This development comes as foreign portfolio investors have shown renewed interest in European banking stocks, with significant inflows recorded across the sector in recent weeks.
However, for individual institutions like PKO BP, the path to margin expansion is complicated by these historical liabilities, which continue to weigh on profitability metrics.