Current Report no. 26 (2021)

8 october 2021

Impact of the Monetary Policy Council's decision to increase interest rates on the financial performance of Santander Bank Polska Group

The Management Board of Santander Bank Polska S.A. ("the Bank") hereby informs about the impact of the Monetary Policy Council decision of 6 October 2021 to increase interest rates ("MPC's decision") on the financial performance of Santander Bank Polska Group ("the Group").

As at the date of this report, based on its calculations, the Bank reports that the MPC's decision to increase interest rates by 40 basis points will have a positive impact on the Bank's net interest income of approximately PLN 300 - 350 million over the next 12 months. The net interest income of Santander Consumer Bank S.A., the Bank's subsidiary, will be impacted likewise - by PLN 35 - 45 million.

Therefore, the positive impact on the Group's net interest income over the next 12 months will total approximately PLN 335 - 395 million.

The impact will materialise gradually in the coming quarters, whist its actual scale will depend on the shape of the yield curve, performance against business assumptions and potential changes in the balance sheet.