GE · 10-Q · 2026Q2 · Full report

Bank BPH Litigation and Related Provision

GENERAL ELECTRIC CO · 2026-07-16 · Importance 86 · Surprise 84 · No source text

Bank BPH (Poland) remains subject to ongoing borrower litigation related to foreign-currency indexed/denominated residential mortgage loans; the Company estimates total losses of $1,814 million as of June 30, 2026 (down from $2,334 million at December 31, 2025) driven by utilization and foreign exchange movements. The Bank BPH financing receivable portfolio is carried at the lower of cost or fair value less cost to sell and had no carrying value net of a valuation allowance at June 30, 2026. The valuation allowance against financing receivables held for sale was $1,103 million at June 30, 2026 (down from $1,389 million at December 31, 2025) and completely offsets the receivable balance. The Company notes no incremental contributions were required from GE Aerospace during the six months ended June 30, 2026 but warns that future adverse developments could increase estimated losses and require cash contributions.

Key facts

• The estimate of total losses for borrower litigation at Bank BPH was $1,814 million as of June 30, 2026 and $2,334 million as of December 31, 2025. source
• We recorded an additional charge of $1,014 million in the quarter ended June 30, 2023 related to the Bank BPH settlement program. source
• Remaining estimated total losses for borrower litigation at Bank BPH were $1,814 million as of June 30, 2026 and $2,334 million as of December 31, 2025; decrease driven by utilization and foreign exchange movements. source
• The Bank BPH financing receivable portfolio had no carrying value at June 30, 2026, net of a valuation allowance; income related to borrower litigation was zero in pre-tax charges for the three and six months ended June 30, 2026 and 2025. source

Impact estimates