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Santander Bank Polska SASantander BP lender assesses its ability to pay high dividends
Listed lender Santander BP, the unit of Spanish Banco Santander, wants to pay dividends to the maximum extent possible and estimates that, thanks to its strong capital position, they can be high, the bank's CEO Michal Gajewski told a conference.
"We are waiting for the recommendation of Poland's financial market regulator KNF on the dividend. We have a very strong capital position. Our strategy is to pay dividends on a regular basis and to the maximum extent possible, but this depends on KNF's recommendation," the CEO said.
"I believe that with these results, with this capital position, we can pay high dividends," he added.
After the three quarters of 2024, Santander's group net profit stood at PLN 4.3 billion (EUR 989 mln), up from PLN 3.85 billion (EUR 885.5 mln) in the prior year period. The total capital ratio is at 17.43 percent.
"The third quarter was a good quarter for us, a quarter of growth, we maintained interest and commission income at a high level for another quarter in a row, and sales were also at a high level in all business lines," Gajewski told the conference.
The bank's gross loans increased by 8 percent year on year to PLN 198 billion (EUR 45.54 bln). Mortgage sales in the third quarter of 2024 amounted to PLN 2.2 billion (EUR 506 mln) and cash loan sales to PLN 3 billion (EUR 690 mln).
"There is less interest in mortgages among customers, and we are seeing lower interest," CEO Gajewski said.
Santander said that by the end of the third quarter of 2024, a total of 11,978 settlements had been reached with CHF loans borrowers (including 2,635 since the beginning of 2024 and 838 in the third quarter alone), both at the pre-court stage and after the conclusion of litigation cases. In the third quarter, the cost of these settlements amounted to PLN 12.9 million (EUR 3 mln).
"We are proactively proposing these settlements. It is a matter of negotiation with clients, activity on the law firm side. We may be seeing a little less interest, but we are consistently proposing settlement solutions," Gajewski said.
The CEO reported that in customer lawsuits challenging the WIBOR rate, all court judgments favoured the bank (including one that was final). The bank has more than 140 such judgments.
Gajewski added that the bank is also being sued in cases involving the sanction of 'free credit' and has more than 90 percent favourable judgments out of about 120 final judgments.
"We do not see any special threat to us at this stage," the CEO said.
Santander's BP net interest margin for the third quarter of 2024 (annualised on a quarterly basis) was 5.37 percent and remains stable. The cumulative net interest margin (annualised on a year-to-date basis) decreased from 5.37 percent to 5.28 percent over the three quarters of 2024 and, excluding the impact of mortgage moratorium under the state-subsidised mortgage programme, was 5.35 percent.
The bank's management board member Maciej Reluga reported that the bank's sensitivity to interest rate changes has decreased a lot in recent years.
"The share of fixed-rate loans (...) is steadily increasing. But of course, if rate cuts take place, then the financial result will be affected. The question is to what extent the increase in loan volumes will neutralise the effect of lower rates," Reluga said.
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