Loss on sale and liquidation of property, plant and equipment, intangible assets
Indemnifications, penalties and fines paid
Costs of provisions for disputed claims
Costs of leasing business
Costs of collection service
Provisions for potential returns to clients*
* On 11 September 2019 The Court of Justice of the European Union ruled in the case of Lexitor against SKOK Stefczyka, Santander Consumer Bank and mBank (case C 383/18) in which it stated that consumer has rights to demand the reduction of the total loan cost corresponding to interest and costs for the remaining term of the agreement in case of early repayment of loan.
Taking into consideration this verdict, in 2020 the Group recorded in the P&L provision amounting to PLN 142.4 million. Part of this provision (PLN 88.5 million) was an accounting loss of Y2020 resulting from ex-Euro Bank’s clients early repayments made before Euro Bank purchase date and was partially compensated by positive valuation of indemnity agreement signed with Societe Generale S.A. (PLN 35.8 million) – this effect was recognised as „other operating income”. The provision was estimated based on the amount of potential returns and the probability of payment.
The balance sheet value of outstanding provision for potential returns as of 31.12.2020 was 113.7 million.