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1. Company Snapshot

1.a. Company Description

Santander Bank Polska S.A., together with its subsidiaries, provides various banking products and services for individuals, small or medium-sized enterprises, corporate clients, and public sector institutions.It offers personal account, deposits and currencies, internet and mobile banking, and mobile contactless payments, and credit solutions.The company also provides investment advisory, structured deposits, structured certificates and bonds, and brokerage services.


In addition, the company offers accounts, business loans, credits, cards and payment terminals, deposits and investments, foreign trade, financial markets, leasing, and internet banking services.Further, the company offers transaction handling, liquidity management, export, import, domestic, and foreign guarantees, working capital finance, current, and investment financing services.Additionally, the company provides foreign exchange, hedging financial risk, correspondence banking, trade finance, and trust services, as well as solutions for financial institutions and global banking transactions.


Furthermore, it offers debt and rating advisory and capital market and debt capital services.As of 31 December 2021,the company operates 383 branches.The company was founded in 1857 and is headquartered in Warsaw, Poland.


Santander Bank Polska S.A. is a subsidiary of Banco Santander S.A.

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1.b. Last Insights on SPL

Santander Bank Polska S.A.'s recent performance was positively driven by robust Q3 2025 earnings, showcasing strong profitability and growth in business loans. The bank's strategic move to sell a 3.5% stake in its Polish unit for $473 million, completed on December 2, 2025, also contributed to its positive momentum. This transaction, which reduced Santander's stake to around 9.7%, likely enhanced the bank's liquidity and capital position. Additionally, the bank's ability to navigate potential tax challenges and cost increases while maintaining profitability underscores its resilience.

1.c. Company Highlights

2. Erste Bank Polska's Q4 2025 Earnings: A Strong Finish to the Year

Erste Bank Polska reported a net profit of PLN 6.463 billion for the year, with a profit before tax from continuing operations of PLN 8.260 billion. Net interest income reached PLN 12.703 billion, a 4% year-on-year increase, while net fee income hit an all-time high in Q4, growing 6% year-on-year. The bank's EPS came in at 17.48, beating analyst estimates of 17.23. Revenue growth is expected to be 3.0% next year, according to analyst estimates.

Publication Date: Feb -08

📋 Highlights
  • Strategic Ownership Shift: Completed acquisition by Erste Group (PLN 250M rebranding cost) and rebranded to Erste Bank Polska in Q1 2025.
  • Financial Performance: PLN 6.46B net profit (after PLN 3B tax charge) with PLN 12.7B net interest income (+4% YoY) and PLN 2.95B fee income (+6% YoY).
  • Customer Growth: 5% YoY increase in customer funds (PLN 261B), 6M total customers, and 5% more mobile users (3.9M digital customers).
  • SME & Lending Expansion: 87% YoY rise in fully digital SME loans, PLN 12.6B cash loans (+10% YoY), and PLN 4.5B leasing sales (+8% YoY).

Financial Performance

The bank's customer deposits stood at PLN 230 billion, with customer funds totaling PLN 261 billion, a 5% increase compared to the previous year. Gross loans were up 4% year-on-year to PLN 167 billion. The bank's loan loss provisions were PLN 586 million, with an average cost of risk of 37 basis points, the lowest in its history.

Business Highlights

The bank introduced new products and initiatives, including a new investment fund, expanded local comfort insurance, and a referral program for young customers. The customer base grew to over 6 million customers, with 3.9 million digital customers and 5% more mobile customers year-on-year. The bank also saw growth in the SME segment, with digital lending accelerating and the volume of fully digital SME loans increasing by 87%.

Valuation and Outlook

With a P/TBV ratio of 1.67 and a Dividend Yield of 7.99%, Erste Bank Polska appears attractively valued. The bank's management expects two 25-point interest rate cuts in 2026 and is optimistic about the future, citing a stable cost of risk and a focus on current deposits. As Maciej Reluga, the bank's representative, stated, "We're focused on profitable growth, leveraging the experience of Erste Group." The bank's outlook for 2026 includes a continued focus on lending, particularly in the SME market, and a strategic collaboration agreement with Santander to support business development.

Guidance and Strategy

The bank expects to maintain a cost-to-income ratio of around 30% and is guiding for total costs to be in line with the expected CPI in 2026. The cost of rebranding is estimated at PLN 250 million, with most of it to be incurred in the second quarter. The bank remains optimistic about its cooperation with the new shareholder, Erste Group, and expects another year of growth and good performance.

3. NewsRoom

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Santander Bank Polska SA (FRA:BZI) (Full Year 2025) Earnings Call Highlights: Strong Profit ...

Feb -06

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European Dividend Stocks To Consider In January 2026

Jan -23

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Santander completes stake sale in Polish unit to Austria’s Erste

Jan -12

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3 European Dividend Stocks To Consider With Up To 10.2% Yield

Dec -25

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Santander sells 3.5% stake in Polish unit for $473m

Dec -03

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Santander to Sell Stake in Polish Subsidiary for Around $473 Million After Erste Group Deal

Dec -02

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European Dividend Stocks To Enhance Your Portfolio

Nov -26

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Did Revised Sales Guidance and Legal Scrutiny Just Shift Trex Company's (TREX) Investment Narrative?

Nov -16

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4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (7.30%)

6. Segments

Retail Banking

Expected Growth: 7.43%

Santander Bank Polska S.A.'s 7.43% retail banking growth is driven by increasing demand for digital banking services, strategic partnerships, and expansion into underserved markets. Additionally, the bank's focus on customer experience, competitive pricing, and innovative product offerings have contributed to its growth. Furthermore, the Polish economy's stability and growing middle class have also supported the bank's retail banking segment.

Business and Corporate Banking

Expected Growth: 6.47%

Santander Bank Polska S.A.'s 6.47% growth in Business and Corporate Banking is driven by a strong focus on digitalization, expansion of cash management services, and tailored solutions for large corporations and SMEs. Additionally, the bank's strategic partnerships and investments in fintech companies have enhanced its capabilities in trade finance, supply chain management, and risk management, attracting new clients and increasing wallet share.

Corporate and Investment Banking

Expected Growth: 7.4%

Santander Bank Polska S.A.'s 7.4% growth in Corporate and Investment Banking is driven by increasing demand for cash management and trade finance services, expansion of transaction banking offerings, and strategic partnerships with Polish corporations. Additionally, growth in debt capital markets and M&A advisory services, as well as a strong pipeline of deals, contribute to the segment's growth.

Santander Consumer

Expected Growth: 7.4%

Santander Consumer's 7.4% growth is driven by increasing demand for consumer finance, strategic partnerships, and expansion into new markets. Additionally, the segment benefits from Santander Bank Polska's strong brand recognition, efficient risk management, and digitalization efforts, enabling it to capitalize on Poland's growing economy and rising consumer spending.

ALM and Center

Expected Growth: 8.37%

Santander Bank Polska S.A.'s ALM and Center segment growth of 8.37% is driven by effective asset liability management, optimized interest rate risk, and a strong focus on cost control. Additionally, the center's efficient operations, robust risk management, and strategic investments in digital transformation have contributed to this growth.

7. Detailed Products

Current Accounts

A type of deposit account that allows customers to manage their daily finances, make transactions, and access their money easily.

Savings Accounts

A type of deposit account that allows customers to save money and earn interest, while still having access to their funds.

Credit Cards

A type of loan that allows customers to borrow money to make purchases, pay bills, or get cash advances.

Personal Loans

A type of loan that allows customers to borrow money for various purposes, such as debt consolidation, home improvement, or major purchases.

Mortgage Loans

A type of loan that allows customers to borrow money to purchase or refinance a home.

Investment Products

A range of investment products, including mutual funds, stocks, bonds, and pension plans.

Insurance Products

A range of insurance products, including life insurance, health insurance, and property insurance.

Business Banking

A range of financial products and services designed for businesses, including current accounts, loans, and cash management solutions.

8. Santander Bank Polska S.A.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Santander Bank Polska S.A. operates in a highly competitive market, but the threat of substitutes is moderate due to the complexity of banking services and the need for regulatory compliance.

Bargaining Power Of Customers

Santander Bank Polska S.A. has a large customer base, but customers have significant bargaining power due to the ease of switching banks and the availability of alternative financial services.

Bargaining Power Of Suppliers

Santander Bank Polska S.A. has a diversified supplier base, and suppliers have limited bargaining power due to the bank's large scale of operations and negotiating power.

Threat Of New Entrants

The banking industry has high barriers to entry, including regulatory requirements and capital requirements, making it difficult for new entrants to enter the market.

Intensity Of Rivalry

Santander Bank Polska S.A. operates in a highly competitive market with many established players, leading to intense rivalry and competition for market share.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 34.00%
Debt Cost 8.60%
Equity Weight 66.00%
Equity Cost 8.60%
WACC 8.60%
Leverage 51.52%

11. Quality Control: Santander Bank Polska S.A. passed 4 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Growth: 8.1

Quality: 6.8

Yield: 10.0

Momentum: 7.0

Volatility: 7.3

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Santander Bank Polska

A-Score: 6.5/10

Value: 6.5

Growth: 6.2

Quality: 6.9

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Yield: 5.0

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

605.6$

Current Price

605.6$

Potential

-0.00%

Expected Cash-Flows