Santander Bank Polska (SPL) Q1 2025 earnings summary

Executive summary

• Net profit for Q1 2025 reached PLN 1.7 billion, up 10.8%–11% year on year, with profit before tax at PLN 2.3 billion and total income at PLN 4.4 billion, driven by higher business volumes and improved asset quality.

• Customer deposits grew 12.7%–13% year on year to PLN 237–262 billion, and gross loans increased 7.8%–8% to over PLN 182 billion.

• Customer base exceeded 7.5 million, with digital customers up nearly 7% and mobile banking users up nearly 11% year on year.

• Strong capital and liquidity positions maintained, with CET1 at 17.26%, total capital ratio at 18.10%, and LCR at 209.92%.

• Cost to income ratio rose to 34.8% due to higher regulatory and transformation costs, while ROE remained high at 19.5%.

Financial highlights

• Net interest income was PLN 3.6 billion, up 6%–6.2% year on year; net fee and commission income reached PLN 748 million, up 2.7%–3%.

• Total income rose 7% year on year to PLN 4.4 billion.

• Operating expenses increased 14%–40% year on year, mainly due to higher regulatory and staff costs.

• Cost of credit risk improved to 0.57% (from 0.7% a year ago); NPL ratio decreased to 4.3%.

• ROE at 19.5%, ROA at 1.7%, and net interest margin at 5.14%.

Outlook and guidance

• Positive outlook for 2025, with expectations of continued growth in loans and deposits, and interest rate cuts likely later in 2025.

• Focus on digital transformation, customer acquisition, and responsible banking commitments.

• Regulatory and legal risks, especially related to FX mortgage loans, remain a key area of attention.

• Bank expects to maintain low credit risk and stable macroeconomic conditions.

• External risks include geopolitical tensions, global monetary policy shifts, and potential changes in credit demand and asset quality.