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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

Breaking News: Santander Bank Polska S.A. has announced the sale of a 3.5% stake, or 3.58 million ordinary shares, in its Polish subsidiary. The deal is valued at around $473 million. This move comes after an agreement with Erste Group. The sale was completed through a placement. No details on recent earnings release are available. Analysts from various firms have given mixed recommendations. Some have a buy recommendation from PKO, hold from DM and sell from none on our board.

1.c. Company Highlights

2. Strong Q3 Earnings: Bank's Net Profit Soars to PLN 4.9 Billion

The bank's financial performance in the first nine months of 2025 was robust, with a net profit of PLN 4,892 million. Net interest income reached PLN 9,549 million, up 5% year-on-year, while net fee and commission income was PLN 2.2 billion, also up 5% year-on-year. Total income was PLN 12 billion, a 6% increase from the previous year. The bank's EPS came in at 18.49, significantly higher than the estimated 14.61. The return on equity stood at 21.6%, indicating a strong capital position.

Publication Date: Nov -02

📋 Highlights
  • Financial Growth Metrics: Client deposits (PLN 221 bln) and funds (PLN 249 bln) surged YOY, with total income up 6% to PLN 12 bln and net profit at PLN 4.89 bln.
  • Capital Strength: Solid ROE of 21.6% and LCR exceeding 203%, alongside low credit risk cost at 33 bps, reflecting robust capital and liquidity management.
  • Retail & SME Loan Performance: Mortgage sales hit PLN 3.1 bln (best 5Q), SME loans totaled PLN 3.9 bln (PLN 1.3 bln in Q3), and cash loans reached PLN 9.3 bln.
  • Corporate Banking Growth: Loan volumes up 8% YOY, FX income rose 11%, while capital markets revenue surged 56% and treasury transactions grew 15% YOY.
  • Tax & Cost Challenges: Tax/regulatory costs at PLN 730 mln (Q3) with an effective tax rate of 23.2%, and proposed tax changes could raise the burden by 60%.

Segmental Performance

In retail banking, the bank maintained 4.8 million personal accounts, with cash loans issued totaling PLN 9.3 billion and mortgage sales reaching PLN 3.1 billion. The SME segment also saw significant loan growth, with PLN 3.9 billion in loans issued. In Business and Corporate banking, loan volumes increased by 8% year-on-year, with corporate and investment banking revenues from capital markets rising by 56%.

Asset Quality and Capital Position

The bank's gross loan portfolio stood at PLN 165 billion, with a cost of credit risk of 33 basis points, one of the lowest historical results. The liquidity coverage ratio (LCR) was over 203%, indicating excellent liquidity. The bank's capital position remains solid, with a return on equity of 21.6%.

Outlook and Valuation

The bank expects growth in loans, particularly in the retail mortgage segment, and anticipates a positive outlook for net interest income. Analysts estimate next year's revenue growth at 0.3%. The bank's current valuation metrics include a P/TBV of 1.59 and a Dividend Yield of 9.52%. With a ROE of 17.2%, the bank's valuation appears reasonable, reflecting its strong financial performance and growth prospects.

Management's Guidance

As the bank's executive noted, "We reflect the interest rate cut by repricing term deposits, resulting in a decline in our interest expense on deposits." This strategic move is expected to support the bank's net interest income. The executive also expressed optimism about the bank's credit risk profile, citing a cost of credit risk of 33 basis points.

3. NewsRoom

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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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Nov -26

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Nov -16

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Santander Bank Polska SA (FRA:BZI) Q3 2025 Earnings Call Highlights: Strong Profitability Amid ...

Oct -31

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Oct -08

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Poland Deal Good Despite Planned Bank Tax: Erste CEO

Sep -15

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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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Quality: 5.4

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A-Score: 6.2/10

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Quality: 7.2

Yield: 7.5

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Santander Bank Polska

A-Score: 6.2/10

Value: 5.3

Growth: 6.0

Quality: 8.0

Yield: 8.8

Momentum: 5.0

Volatility: 4.0

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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

479.0$

Current Price

479$

Potential

-0.00%

Expected Cash-Flows