Santander Q1 Attributable Profit Surges 19% Amid Strong Net Fee Income and Lower Costs.

Santander reported a record Q1 attributable profit of 3.40 billion euros, a 19% increase from last year. The bank added 9 million customers, bringing the total to 175 million. Revenue rose 1% to 15.5 billion euros, with net interest income flat at 4% in constant euros. Santander is on track to meet its 2025 targets with 62 billion euros revenue and mid-high single-digit growth in net fee income.

Santander Bank Polska, the Polish subsidiary of Spanish lender Santander, reported a 10.8% increase in first-quarter net profit, reaching 1.73 billion zlotys ($461.1 million) [1]. The rise was primarily driven by higher net interest income and lower costs associated with Swiss franc loans. Analysts had expected the net profit to be 1.62 billion zlotys, indicating that the actual result exceeded expectations.

The bank's net interest income for the first quarter of 2025 rose by 6.2% to 3.60 billion zlotys, although this was slightly below the 3.62 billion zlotys forecast by analysts. The increase in net interest income was attributed to higher loan volumes and increased demand, particularly for consumer and corporate loans. The cost of legal provisions for foreign currency mortgage loans decreased significantly from 1.44 billion zlotys in the fourth quarter of 2024 to 120.5 million zlotys in the first quarter of 2025.

Santander Bank Polska's net interest margin for the first quarter was 5.14%, a decrease from 5.27% in the fourth quarter of 2024. This decline is attributed to the growth in key business volumes and the expected direction of market interest rates. The bank noted that these adjustments reflect its asset and liability management strategies.

Sales of mortgage loans in the first quarter amounted to over 2.4 billion zlotys, contributing to an increase in the housing loan portfolio. By the end of March 2025, the housing loan portfolio had grown to over 67.9 billion zlotys, representing a 4.3% increase from March 2024.

The Polish unit of Santander is currently exploring options for its approximately $8 billion majority stake in the country, following a 5.2% stake sale for 575 million euros in September 2024. Austria's Erste Group Bank has been in discussions about acquiring a 49% stake in Santander Bank Polska.

Poland's main interest rate has been at 5.75% since October 2023, but the outlook for inflation has led policymakers to signal that the cost of credit may fall soon. The central bank governor of Poland indicated that policy easing could start as early as May 2025, with the cost of credit potentially falling to 3.5% by 2026.

References:
[1] https://www.tradingview.com/news/reuters.com,2025:newsml_L1N3R8068:0-santander-bank-polska-s-first-quarter-net-profit-rises-10-8-on-year/
[2] https://www.gurufocus.com/news/2807425/inmode-reports-first-quarter-2025-financial-results-quarterly-revenue-of-779-million-represents-3-yearoveryear-decrease-inmd-stock-news