Santander Bank Polska (SPL) Q3 2024 earnings summary

Executive summary

• Net profit for the first three quarters of 2024 reached PLN 4.3 billion, up 12% year-on-year, with gross profit at PLN 5.8 billion and total income at PLN 12.7 billion, growing 7% year-on-year.

• Customer deposits grew by up to 4% year-on-year, with customer funds reaching PLN 241 billion and gross loans up 8% to as high as PLN 198 billion.

• Digital customer base expanded by 7% year-on-year, with mobile banking customers up 12%.

• Regulatory and tax costs exceeded PLN 2.6 billion for the first three quarters, with cost-to-income ratio at 30%.

• The Group continued digital transformation, process automation, and enhanced cybersecurity.

Financial highlights

• Net interest income after three quarters was PLN 10.249 billion, up 6% year-on-year; net fee and commission income reached PLN 2.184 billion, up 9% year-on-year.

• Operating costs exceeded PLN 3.8 billion after three quarters, up 9% year-on-year, mainly due to higher regulatory and staff costs.

• Net interest margin for Q3 was 5.37%, stable compared to previous periods.

• Investment funds grew 39% year-on-year; retail deposits up 9% YoY, business deposits down 2% YoY.

• Earnings per share increased to PLN 42.07 from PLN 37.68 YoY.

Outlook and guidance

• Expectation of the first interest rate cut in mid-2025, with a potential 100 basis point reduction next year.

• Net interest margin impact from rate cuts estimated at 10–20 basis points, with volume growth expected to offset margin pressure.

• Strong capital and liquidity positions maintained, with capital ratios well above regulatory requirements.

• Continued focus on digitalization, customer acquisition, and green financing initiatives.

• External factors such as interest rate decisions, inflation, geopolitical risks, and regulatory changes are expected to impact future performance.