Santander Bank Polska (SPL) Q3 2025 earnings summary

Executive summary

• Net profit for the first nine months of 2025 reached PLN 4.892 billion, up 13% year-over-year, with gross profit at PLN 6.4 billion and strong growth in digital engagement and customer base to 6.1 million.

• Total income increased by 6% year-over-year to PLN 12 billion, driven by higher net interest and fee income.

• Maintained strong capital and liquidity positions, with ROE at 21.6% and liquidity coverage ratio over 203%.

• Cost-to-income ratio was 30.0%–30.6%, reflecting higher regulatory and operating costs.

• Continued digital transformation, process automation, and cybersecurity enhancements.

Financial highlights

• Net interest income reached PLN 9.549 billion (+5% YoY); net fee and commission income was PLN 2.2 billion (+5% YoY).

• Gross loans increased by 5% YoY to PLN 187.1 billion; deposits rose by 9% YoY to PLN 221 billion.

• NPL ratio improved to 4.0% for continuing operations; cost of credit risk at 0.33%.

• Net expected credit loss allowances decreased by 31.7% YoY, reflecting improved credit quality.

• Effective tax rate higher than nominal 19% due to lack of tax shield and regulatory/legal risk costs.

Outlook and guidance

• Expectation of further interest rate cuts, with rates reaching 4% by early 2026; inflation and regulatory changes to impact results.

• Optimistic about continued growth in retail mortgages, business loans, and investment in digital and AI services.

• Preparing for ownership changes, with Erste Group set to acquire a 49% stake, pending regulatory approval.

• Cost growth expected to align with inflation outlook; non-recurring costs related to ownership change anticipated.

• No major changes expected in credit risk profile or cost of risk; stabilization anticipated.