Current Report no. 33 (2023)

Impact of an interest rate decrease by the Monetary Policy Council on the financial performance of Santander Bank Polska Group.

The Management Board of Santander Bank Polska S.A. ("Bank) hereby informs you of the impact of the decision to decrease interest rates made by the Monetary Policy Council on 6 September 2023 ("MPC Decision") on the financial performance of Santander Bank Polska Group ("Group").

As at the date of this report, the Bank shows, on the basis of in-house estimates, that the MPC Decision to cut interest rates by 75 bps will have a negative impact on the Bank's net interest income, ranging from PLN 375m to PLN 525m in the next twelve months. Additionally, the negative impact on the net interest income of Santander Consumer Bank S.A. (the Bank's subsidiary) will range from PLN 15m to PLN 20m.

In view of the above, the negative impact on the Group's net interest income over the next twelve months will range from PLN 390m to PLN 545m.

That impact will gradually materialise in the coming quarters and its actual scale will depend on delivery of the business objectives and potential changes in the balance sheet.

At the same time, the Bank informs that if interest rates declined by 100 bps, total sensitivity of the Bank's net interest income over the next twelve months would range from PLN 500m to PLN 700m. That impact would gradually materialise in the coming quarters and its actual scale would depend on delivery of the business objectives and potential changes in the balance sheet.

The foregoing estimates and assumptions may change.

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

18:53, 6 Sep 2023