Santander Bank Polska (SPL) Q4 2024 earnings summary

Executive summary

• Net profit for 2024 reached PLN 5.2 billion, up 8% year-over-year, with total income rising 7% to PLN 17.1 billion, driven by higher net interest and commission income.

• Customer funds rose 12% year-over-year to PLN 256 billion, and gross loans increased 9% to PLN 180 billion.

• Strong capital and liquidity positions, with CET1 at 16.78% and LCR at 215%.

• Continued digital transformation and product innovation across all segments, with digital customers up nearly 8% and mobile banking users up 13%.

• Profitability was impacted by increased legal risk costs for foreign currency mortgage loans and higher operating expenses.

Financial highlights

• Net interest income for 2024 was PLN 13.9 billion, up 6% year-over-year; net fee and commission income totaled PLN 2.9 billion, up 7%.

• Total income reached PLN 17.1 billion, up 7% year-over-year; cost/income ratio at 29.6%.

• Operating costs for 2024 were PLN 5.1 billion, with a cost-to-income ratio of 29%.

• Provisions for loan losses were PLN 983 million, down 13% year-over-year, reflecting improved credit quality.

• Regulatory costs and taxes totaled PLN 3.1 billion in 2024, including a banking tax of PLN 819 million.

Outlook and guidance

• Lending growth in 2025 expected to accelerate, especially in corporate and business segments, supported by EU funds.

• First interest rate cuts anticipated in mid-2025, with a projected reduction of 100–125 basis points, continuing into 2026.

• Operating cost discipline to be maintained, targeting total costs in line with inflation.

• Cost of credit risk expected to remain at similar or slightly higher levels, aiming for the lower end of the 70–90 bps range.

• Focus remains on digitalization, customer experience, and responsible banking, with continued investment in green financing and innovation.