Santander Bank Polska SA

Global insurers and reinsurers are set to increase their investment in credit risk transfer (SRT) transactions by approximately 50% in 2026, as banks accelerate the use of such tools to reduce risk and unlock capital. A survey by the International Association of Credit Portfolio Managers (IACPM), which polled 14 insurers, found that the highest growth will come from corporate loans and asset-backed loans, followed by residential mortgages. Most SRT transactions are funded SRT, but investors like insurers typically participate through unfunded SRT, which does not require upfront cash. However, the Bank of England (BOE) has warned that unfunded SRT could increase risk during market stress. IACPM data shows that the number of unfunded protections increased to 96 transactions in 2025 from 78 the previous year. Insurers provided SRT tranche protection worth approximately 4.7 billion euros, or 5.5 billion dollars, and as of the end of 2025, the total outstanding protection amounted to 10.9 billion euros, linked to a total loan portfolio of 366 billion euros. Major banks using this tool include BNP Paribas, Mitsubishi UFJ Financial Group (MUFG), and Erste Group Bank, with Erste using SRT to unlock capital to acquire Santander Bank Polska.

Banco Santander reported a 3% year-over-year increase in second-quarter profit attributable to the parent, reaching €3.52 billion, and confirmed its 2026 financial targets as well as its three-year plan. Underlying profit attributable rose 17% to €3.77 billion, while total income was €15.58 billion. The bank said it is on track to meet its 2026 goals, including mid-single-digit revenue growth and a CET1 ratio between 12.8% and 13%, and reiterated its three-year plan targeting a return on tangible equity above 20%, profit above €20 billion, and more than 210 million customers by 2028. First-half profit attributable to the parent reached €8.97 billion, up 31%, boosted by a €1.9 billion net capital gain from the disposal of Santander Bank Polska, partially offset by €250 million in restructuring costs related to the integration of TSB.