Current Report no. 35 (2021)

10 december 2021

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

In connection with current reports: (i) no. 26/2021 of 8 October 2021 and (ii) no. 27/2021 of 5 November 2021 the Management Board of Santander Bank Polska S.A. hereby informs of the impact of the Monetary Policy Council's decisions to increase interest rates made on : (i) 6 October 2021, (ii) 3 November 2021 and (iii) 8 December 2021 (MPC Decisions) on the financial performance of Santander Bank Polska Group.

As at the date of this report, the Bank shows, on the basis of in-house estimates, that the MPC Decisions to raise interest rates by a total of 165 bps will have a positive impact on the Bank's net interest income of PLN 1,000m to 1,150m in the next twelve months. A positive impact on the net interest income of Santander Consumer Bank S.A. (the Bank's subsidiary) will range from PLN 100m to PLN 110m.

In view of the above, positive impact on the Group's net interest income over the next twelve months will range from PLN 1,100m to 1,260m.

The impact has been estimated assuming a stable level of balance sheet positions. It 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.