Q3 2024 Santander Bank Polska SA Earnings Call Transcript
Key Points
- Santander Bank Polska SA (FRA:BZI) reported a gross profit of PLN5.8 billion after three quarters, with PLN2.6 billion generated in the third quarter alone.
- The bank's digital customer base has grown significantly, with 4.5 million digital customers and 3.5 million mobile banking customers, marking a year-on-year increase of 7% and 12%, respectively.
- Customer deposits increased by 4%, and the gross loans portfolio grew by 8% year-on-year, reaching nearly PLN200 billion.
- Net interest income rose by 6% year-on-year to PLN10.249 billion, with a 5% increase in the third quarter compared to the same period last year.
- The bank's return on equity stands at a robust 20.5%, and it maintains excellent liquidity with a Liquidity Coverage Ratio (LCR) of 206%.
- The bank faced a significant tax burden of PLN2.3 billion and regulatory costs of PLN284 million, totaling over PLN2.6 billion, which matched the gross profit for the third quarter.
- Operating costs increased by 9% due to higher banking guarantee fund contributions and inflation-driven expenses, including a 9% rise in staff costs.
- The net balance of credit provisions after three quarters was PLN908 million, with a stable cost of credit risk around 70 basis points.
- The bank experienced a downgrade in the Corporate segment, leading to a growth in Non-Performing Loans (NPLs) by 30 basis points, although the NPL ratio remains below 5%.
- There is uncertainty in the mortgage market due to ongoing discussions about a new support program, which has affected sales in the third quarter.
(interpreted) Good morning. My name is Agnieszka Dowzycka. I'm responsible for Investor Relations at Santander Bank Poland. I'd like to welcome you at the presentation of our financial results after the third quarter of 2024. Today's presentation will be delivered by our CEO, Michal Gajewski; Maciej Reluga, CFO; and Wojciech Skalski, Head of Accounting and Financial Control Division. (Operator Instructions)
And now let me give the floor to the CEO.
Thank you, Agnieszka. Good morning, once again, welcome at the presentation of our financial results. However, let me start with a short comment on our right addressed to customers affected by the flood in the south of Poland. As I have always highlighted, we treat our mission of helping our customers in important matters seriously. That is why we launched support to customers as one of the first banks, both in the form of sectorial moratoria and request to
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