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Santander Bank Polska SASantander BP lender sees lower rate cut sensitivity and expects cost of risk to stay below 70-90 bps
Listed lender Santander BP, the unit of Spanish Banco Santander, reports its sensitivity to interest rate cuts has significantly decreased, estimating a 100 basis point reduction would lower annual net interest income by just over PLN 300 million (EUR 70.4 mln), the bank's management board member Maciej Reluga told a conference. The bank also expects its cost of risk to remain below the 70-90 basis point range in the coming quarters.
"The sensitivity of our net interest income to a rate cut has significantly decreased. It now stands at just over PLN 300 million, assuming a 100 basis point cut were to happen tomorrow," Reluga said.
He noted that the share of fixed-rate loans in the portfolio has surpassed 50 percent, reaching 52 percent at the end of the first quarter.
He explained that the increase in fixed-rate loans has contributed to this reduced sensitivity.
Reluga also indicated that the cost of risk could remain below the 70-90 basis point range in the coming quarters, as there are currently no factors threatening this indicator and the bank expects stability.
"If there will be an increase, it will probably be a small one in connection with this, below this range we can actually stay," he added.
The bank's CEO, Michal Gajewski said that interest rate cuts and possible government programs should stimulate more mortgage sales.
At the same time, Gajewski did not comment on recent news of a possible sale of the bank by its main shareholder.
seb/ nl/ han/