Current Report no. 27 (2021)

5 november 2021

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

The Management Board of Santander Bank Polska S.A. ("the Bank"), in reference to the current report no. 26/2021 of 8 October 2021, hereby informs about the impact of the Monetary Policy Council decisions of 6 October 2021 and 3 November 2021 to increase interest rates ("MPC's decisions") 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 decisions to increase interest rates, for the reference rate by a total of 115 basis points, will have a positive impact the Bank's net interest income of approximately PLN 750 - 850 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 75 - 85 million.

Therefore, the positive impact on the Group's net interest income over the next 12 months will total approximately PLN 825 - 935 million.

The impact was estimated based on the assumption of constant balance sheet and 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.