Current Report no. 1 (2020)

Creating a significant provision

The Management Board of Santander Bank Polska S.A. ("Bank") hereby advises that in connection with the decisions made on 7 January 2020 by the Bank and its subsidiary, Santander Consumer Bank ("SCB"), the provisions for legal risk connected with the portfolio of FX mortgage loans and for reimbursement of portion of fees related to early repayment of consumer loans will have an impact of PLN 357m on the consolidated pre-tax profit for Q4 2019, specifically:

• A provision for legal risk connected with the portfolio of FX mortgage loans, recognised in other operating expenses: PLN 173m (Bank: PLN 149m, SCB: PLN 24m);
• A provision for reimbursement of a portion of fees related to early repayment of consumer loans: PLN 184m, including:
- PLN 46m that reduced the Bank's net interest income and PLN 9m recognised in other operating expenses;
- PLN 55m that reduced SCB's net interest income and PLN 74m recognised in other operating expenses;

Detailed additional information about the provisions will be disclosed in the annual report for 2019.

Legal basis:
Article 17(1) of the Market Abuse Regulation