The bank's results are above the consensus. Lower reserves boosted Santander's profit

The net profit of the Santander Bank Polska group attributable to the shareholders of the parent company in the fourth quarter of 2025 increased to PLN 1,838.4 million from PLN 913.4 million a year earlier, the bank announced in its preliminary results. The profit turned out to be 14.2 percent. above the expectations of analysts who predicted that it would amount to PLN 1,609.5 million.

The expectations of 7 brokerage houses regarding the bank's net profit in the fourth quarter of 2025 ranged from PLN 1,398.1 million to PLN 1,845 million.

The net profit of Santander Bank Polska in the fourth quarter of 2025 increased by 101.3%. year to year and decreased by 2.7%. on a quarterly basis.

Net profit in the last quarter of 2025, from continuing operations, amounted to PLN 1.57 billion, and in the entire 2025 it was at the level of PLN 6.46 billion (an increase of 22% y/y).

In the period from June 16, 2025 to December 23, 2025, i.e. from the date of concluding the preliminary agreement with Santander Consumer Finance regarding the sale of all shares of Santander Consumer Bank held by Santander Bank Polska until the closing of this transaction, the group treated Santander Consumer Bank as a discontinued operation.

The positive impact of the change in the corporate income tax rate amounted to PLN 173 million, and the costs of legal risk of mortgage loans in foreign currencies amounted to PLN 610 million.

Interest income in the fourth quarter of 2025 amounted to PLN 3,153.9 million and was in line with the consensus of PLN 3,155.2 million. Interest income decreased by 1.5%. y/y and was lower by 1.3%. kdk.

In 2025, net interest income amounted to PLN 12.7 billion and increased by 4%. rdr.

The bank reported that the interest margin on continuing operations amounted to 4.64%. in the fourth quarter of 2025 and decreased compared to the previous quarters due to changes in market interest rates.

The commission income amounted to PLN 751.8 million, which means that it was 1.1 percent higher than in the previous year. above the forecasts of analysts surveyed by PAP Biznes (PLN 743.7 million). Commission income increased by 7.8%. y/y and was higher by 3.7%. on a quarterly basis.

On a quarterly basis, the bank recorded good results in card commissions (+15% kdk), brokerage commissions (+21% kdk) and asset management commissions (+7% kdk).

In 2025, commission income amounted to PLN 2.9 billion and increased by 6%. rdr.

The group's total revenues in 2025 amounted to PLN 16 billion and increased by 4%. y/y, and remained at a similar level on a quarterly basis.

Total costs amounted to PLN 1,186.6 million, i.e. by 1.3%. lower than the consensus of PLN 1,202.1 million. Total costs increased by 14.2%. y/y and increased by 7%. kdk.

In the fourth quarter of 2025, integration costs amounted to PLN 72 million, including PLN 26 million in employee costs and PLN 46 million in administrative costs.

The group's C/I ratio was 30.3%. in 2025 compared to 29 percent in 2024.

The balance of reserves amounted to PLN 146.4 million and was 22.9 percent higher. lower than the consensus of PLN 189.7 million. The balance of reserves increased by 82.2%. y/y and dropped by 25.4%. compared to the previous quarter.

The group's loan portfolio (excluding SCB) increased by 4%. y/y and by 1 percent kdk to PLN 166.98 billion. The loan portfolio of individual clients increased by 5%. y/y and 1 percent kdk, and business customers by 4%. y/y and 1 percent kdk.

Sales of cash loans in 2025 amounted to PLN 12.6 billion, and mortgage loans to PLN 10.3 billion.

Total deposits increased by 7%. y/y and 4 percent kdk to PLN 230.14 billion. Deposits from individual customers increased by 1%. kdk, while corporate deposits in the fourth quarter recorded an increase of 8%.

The TCR capital ratio is 20 percent and CET1 is 19.5 percent.

seb/ osz/