MBank Drops After Withdrawing Appeal in FX-Loan Class Suit (1)

July 16, 2020, 8:31 AM

MBank SA fell after withdrawing its appeal in a decade-long lawsuit against Swiss-franc mortgage clients, indicating the risks facing Polish lenders as courts gravitate toward more pro-consumer rulings.

The move means that MBank will return some interest payments to 1,247 disgruntled borrowers but it avoids the prospect of the court voiding its credit agreements, which could have been more costly for the lender.

MBank dropped 2.2% on Thursday, the biggest decline in the WIG20 index, to the lowest level in six weeks. The bank’s valuation tumbled 44% this year, nearly three times more than the benchmark equity gauge.

The decision ...

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