Vienna-based Addiko Bank VIE:ADKO suspended its financial guidance on Wednesday and set aside up to €48.8 million ($56 million) in provisions due to risks associated with the effects of rulings in Croatia and Slovenia over Swiss franc-denominated loans.
In the Croatian judgment, the Supreme Court adopted a methodology for calculating overpayments based on a different interest rate than the methodology prescribed for the statutory conversion of CHF-denominated loans, the company said in a statement
The Slovenian Supreme Court's judgment concerns banks' entitlement to compensation where CHF-denominated loan agreements have been declared null and void, it added
Both judgements were rendered against other banks, Addiko said
Addiko said it intends to recognise a provision between €33.1 million and €48.8 million regarding these loans
The bank has been the subject of a takeover battle between Austrian peer Raiffeisen VIE:RBI and Slovenia's NLB LJSE:NLBR
($1 = 0.8773 euros)