Current Report no. 1 (2022)

10 january 2022

Impact of an interest rate increase by the Monetary Policy Council on the financial performance of Santander Bank Polska Group.

In connection with current reports: (i) no. 26/2021 of 8 October 2021, (ii) no. 27/2021 of 5 November 2021 and (iii) no. 35/2021 of 10 December 2021 the Management Board of Santander Bank Polska S.A. hereby informs of the impact of the Monetary Policy Council's decisions to increase interest rates made on : (i) 6 October 2021, (ii) 3 November 2021, (iii) 8 December 2021 and (iv) 4 January 2022 (MPC Decisions) on the financial performance of Santander Bank Polska Group.

As at the date of this report, the Bank shows, on the basis of in-house estimates, that the MPC Decisions to raise interest rates by a total of 215 bps will have a positive impact on the Bank's net interest income of PLN 1,200m to 1,350m in the next twelve months.

A positive impact on the net interest income of Santander Consumer Bank S.A. (the Bank's subsidiary) will range from PLN 110m to 120m.

In view of the above, positive impact on the Group's net interest income over the next twelve months will range from PLN 1,310m to 1,470m.

The impact has been estimated assuming a stable level of balance sheet positions. It will gradually materialise in the coming quarters and its actual scale will depend on delivery of the business objectives and potential changes in the balance sheet.

The foregoing estimates and assumptions may change.

Legal basis:
Article 17(1) of the MAR.