Intesa Sanpaolo sees 65 mln euro hit on Q2 net from Hungary law
MILAN, July 21
MILAN, July 21 (Reuters) - Italian bank Intesa Sanpaolo expects new Hungarian legislation requiring banks to compensate borrowers for exchange rate spreads applied on foreign currency loans to cost its second-quarter net income around 65 million euros ($88 mln).
Intesa Sanpaolo, Italy's biggest retail bank, operates in Hungary through its CIB Bank subsidiary.
Intesa said CIB intended to take legal action to prove that any changes it had brought to the terms of foreign and local currency retail loans were "fair, correct and compliant with the relevant effective laws."
The bank said that it was not possible at this stage to assess potential charges arising from compensation payable to customers for unilateral changes of the loan conditions.
Intesa also said it could not at present estimate possible further charges from a law expected to be approved in the second half of 2014 concerning the conversion of retail foreign-currency loans into Hungarian forints. ($1 = 0.7397 Euros) (Reporting by Valentina Za, editing by Stephen Jewkes)