Finance
Santander Bank Polska's Q4 net profit slips but beats expectations
Published by Global Banking & Finance Review®
Posted on February 5, 2025
2 min readLast updated: January 26, 2026
Global Banking & Finance Review®
Company
Published by Global Banking & Finance Review®
Posted on February 5, 2025
2 min readLast updated: January 26, 2026
Santander Bank Polska's Q4 net profit fell 7% but beat expectations due to FX mortgage loan costs. Net interest income rose 6%.
GDANSK (Reuters) - The Polish unit of Santander Bank posted a 7% fall in its preliminary fourth-quarter net profit on Wednesday, hit by rising costs related to FX mortgage loans, but still beat analysts' expectations.
Santander Bank Polska, the country's second biggest lender by market capitalisation, said quarterly net profit amounted to 913.4 million zlotys ($225.25 million), above the 830 million zlotys expected by analysts in a Reuters poll.
Foreign currency mortgage loans, primarily in Swiss francs, remain a burden for Polish banks. Initially appealing due to low rates in the 2000s, their repayment costs have surged due to the zloty's depreciation against the franc and Swiss rate hikes, inciting legal disputes and pressuring banks to seek settlements.
The bank's net interest income for the three months rose nearly 6% to 3.62 billion zlotys, almost exactly what analysts expected. Still high interest rates and an increased demand for credit, notably consumer and corporate loans, boosted the income, the lender said.
Meanwhile, the cost of legal provisions for foreign currency mortgage loans was 1.44 billion zlotys in the fourth quarter compared with its earlier estimate of 1.17 billion zlotys.
Net interest margin for 2024 came in at 5.27% compared with 5.39% in the previous year due to a decline in market interest rates and modifications made by the group, mainly to account for policy interest rate cuts and their expected evolution, the bank said.
($1 = 4.0550 zlotys)
(Reporting by Anna Banacka; Editing by Mrigank Dhaniwala)
The article discusses Santander Bank Polska's Q4 net profit decline and its impact on the bank's financial performance.
FX mortgage loans, primarily in Swiss francs, increased costs due to currency depreciation and legal disputes.
Net interest income rose nearly 6% due to high interest rates and increased credit demand.
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