Santander Bank Polska's profit jumps, helped by lower provisions (updated)

Erste Bank AG

04/02/2026 06:53

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GDANSK, Poland, Feb 4 (Reuters) - Santander Bank Polska SPL1.WA topped analysts' estimates for fourth-quarter earnings on Wednesday, less than a month after its Spanish parent finalized the sale of a controlling stake to Austria's Erste Group ERST.VI.

The lender's quarterly net profit more than doubled to 1.84 billion zlotys ($515.51 million), while analysts were expecting 1.56 billion zlotys, as a decline in interest income was balanced out by lower legal provisions related to foreign currency loans.

Swiss franc mortgages, popular in the 2000s, have burdened Polish banks with costly lawsuits and settlements since a spike in the currency drove up repayment costs, but the weight of those provisions eased in the quarter.

Net interest income fell 1.5% to 3.15 billion zlotys, matching estimates, as Poland's central bank's monetary easing cycle squeezed margins despite growing loan volumes.

The central bank cut rates six times last year by a total of 175 basis points to
4.00%. The easing followed cooling inflation, which slowed to 2.4% in December, broadly in line with the regulator's target.

Net fee & commission income rose almost 8% on the year to 752 million zlotys, primarily due to a surge in transactional fees.

The lender's net result was also boosted by the earnings of its discontinued consumer bank unit.

The bank finalized the
sale
 of its 60% stake in the business to a unit of Santander SAN.MC for 3.1 billion zlotys in December.

($1 = 3.5693 zlotys)

 (Reporting by Rafal Nowak;
Editing by Milla Nissi-Prussak and Matt Scuffham)

 ((RafalWojciech.Nowak@thomsonreuters.com; +48 58 769 66 63;))