Current report No 22/2022


Impact of the so-called credit vacation on the Bank's situation and results

Getin Noble Bank S.A. (the "Bank") informs that after analysing the consequences of the Act of 7 July 2022 on social financing for business ventures and assistance to borrowers (the "Act") implementing the so-called "credit vacation", on 2 September 2022, the Management Board decided to create a provision for the anticipated costs of suspending the performance of PLN mortgage loan agreements granted to customers under the Act.  

According to the data as of 31 August 2022, the Bank accepted the correct applications of customers for the so-called credit, vacation constituting 33% of the number of agreements meeting the criteria resulting from the Act and 44% of the total principal balance of these agreements.

As a result of the analysis, it was estimated that the expected negative impact of suspending performance of mortgage loan agreements granted in PLN on the Bank's net result for the entire period covered by the Act will be PLN 164 million in total. The above amount will be fully debited to the Bank's net financial result for the third quarter of 2022.

To estimate the amount of the provision, conservative assumptions were made that applications for credit vacation will cover 49% of the principal balance of agreements meeting the criteria arising from the Act, and the applications will cover all statutory periods available.

In connection with the costs resulting from the abovementioned Act, the Bank will report a negative net result for the third quarter of 2022.

The final impact of costs resulting from solutions in the scope of the so-called credit vacation on the Bank's financial result will depend, among other things, on the number of customers who will use these solutions or the number of instalments they suspend. In view of the above, the Bank notes that the accepted amount may be updated.

Legal basis: Article 17(1) of Regulation No 596/2014 of the European Parliament and of the Council of 16 April 2014 (MAR Regulation).