Will frankowiczów sink the banks? [Closer to the Exchange]

During Tuesday's session, the WIG20 index broke the support around 1850 points, continuing the correction of last year's increases started in mid-January. A lot of pressure on the Warsaw bluechip index was exerted by the banking sector, which was targeted by bears due to last week's opinion of the Advocate General of the CJEU. In his opinion, if the cancellation of the Swiss franc loan agreement was due to unfair terms, the bank's customers may pursue claims that go beyond the reimbursement of cash benefits.

Is the banking sector prepared for the verdict?

Although the final judgment of the CJEU is to be issued in the middle of this year at the earliest, it is Polish banking sector has already set up approximately PLN 40 billion in provisions due to the related legal risk. So far, only 25% of holders of active CHF loans have used the court solution. According to estimates NBP, each subsequent 5% increase in the number of court cases will result in the need to increase the balance of provisions by PLN 2,5 billion. In turn, the KNF estimates that in the event of a clearly unfavorable judgment of the CJEU for banks, the costs of the entire sector related to CHF loans may amount to as much as PLN 100 billion. A potential beneficiary of this situation may be Votum SA, which helps its clients obtain compensation.

We invite you to the next webinar Closer to the Stock Exchangein which Maciej Kietliński answers the title question - will franchise holders sink the banks?

In the latest webinar:

• Impact of the CJEU Advocate General's opinion on the Polish banking sector
• What is the impact of the judgment on bank reserves? 
• Votum as a potential beneficiary of the CJEU judgment?   

About the host

Maciej Kietlinski - professionally involved in the analysis of capital markets since 2017. He gained the necessary experience in such renowned companies as BGŻ BNP Paribas or Noble Securities. In his last place of work, he specialized in the analysis of listed companies from the dynamically developing gaming sector. He also gave stock exchange comments on TV Biznes24, Parkiet.tv or Inwestorzy.tv and for Forbes, Reuters, Parkiet, Gazeta Wyborcza and PAP Biznes. Kietliński also focuses on development, which is why he is currently working on a doctoral dissertation in economics at the Warsaw School of Economics. CIIA, Investment Advisor or Stock Broker.

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