Adjusting Expectations: Revised FY22 Forecast Based on Detailed 4Q22 Analysis for Votum
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On the back of our more detailed 4Q22 forecast we slightly alter our FY22 forecast
Votum pursues damages claims for clients of financial institutions in the area of personal and property claims as well as abusive clauses in FX mortgage loan agreements. We believe the segment of pursuing claims from abusive clauses in FX loan agreements is thriving at the moment. The Company should be the beneficiary of a growing number of pro-consumer court sentences as well as of growing interest of CHF borrowers in the court path following the first batch of favorable court sentences coupled with clear pro-consumer case-law that was recently reinforced by the CJEU advocate general’s opinion regarding the case C-520/21 on uncontractual use of capital issued in February.
Given the prevailing unfavorable court sentences banks strive to encourage FX borrowers to sign agreements, but due to the favorable case-law (most court sentences annul FX mortgages agreements) the benefits stemming from litigations clearly outweigh those from entering into agreements with banks which coupled with a substantial dispute value results in an inflow of new clients to the Company. Moreover, in the current macroeconomic environment FX borrowers are discouraged from signing agreements with banks as a higher level of interest rates resulting in higher installments of PLN-denominated loans makes the FX loan conversion into PLN less attractive. Besides, Votum has started offering services related to pursuing claims from abusive clauses in selected PLN-denominated loans (so called ‘old portfolio’ loans and those with deferred repayment of part of a loan).
