Provisions for legal risk linked to Swiss franc mortgages continue to chip away at profit

Provisioning against potential losses on legal challenges linked to legacy Swiss franc denominated mortgages continues to chip away at Polish banks' profit, adding to the profitability strains from surging loan losses related to the coronavirus pandemic. Court decisions regarding the legitimacy of the foreign exchange rates used for the conversion of monthly mortgage installments to Polish zloty (PLN) are moving in favor of borrowers, which has encouraged an increasing number of clients to take…