Current Report No. 13/2020

1 Jun, 2020

Impact of the Monetary Policy Council's decision to cut interest rate on the financial performance of Santander Bank Polska Group in 2020.

The Management Board of Santander Bank Polska S.A. ("the Bank"), in reference to the current report no. 6/2020 of 9 April 2020, hereby informs about the cumulative impact of the Monetary Policy Council decisions on interest rate cuts of 17 March 2020, 8 April 2020 and 28 May 2020 ("MPC Decisions") on the financial performance of Santander Bank Polska Group ("the Group") in 2020.

As at the date of this report, based on its calculations, the Bank reports that the MPC's decisions to reduce interest rates by 140 basis points in total will adversely impact the Bank's net interest income by PLN 525 to 575 million. The net interest income of Santander Consumer Bank S.A., the Bank's subsidiary, will be impacted likewise ¬- by PLN 110 to 125 million.

Therefore, the adverse impact on the Group's net interest income in 2020 will range from PLN 635 to 700 million.

The impact will gradually materialise in the coming quarters, whist its actual scale will depend on the yield curve, performance against business assumptions and potential changes in the balance sheet.

Both the provided figures and assumptions might change.

Legal basis:
Article 17(1) of the Market Abuse Regulation.

Santander Bank Polska S.A. with its registered office in Warsaw, al. Jana Pawła II 17, 00-854 Warszawa, registered by the District Court for the capital city of Warsaw, 12th Commercial Division, set up under regulation of the Council of Ministers of 11 April 1988 on setting up Bank Zachodni in Wrocław (Journal of Laws of 1 July 1988, No. 21, item 142), registered under KRS number 0000008723, REGON 930041341, NIP 896 000 56 73, share capital of PLN 1,020,883,050 paid-up in full. Helpline: 1 9999 – fee as per the operator’s tariff.

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