Strategy, business model and value chain (SBM‑1)

The business model of the Group is based on providing financial solutions to individual clients, micro, small, and medium-sized enterprises, as well as Polish and international corporations. We offer a wide range of banking and financial services for both domestic and international markets. Our priority is to foster customer loyalty and employee engagement, which drives growth in revenue, receivables, and deposits.

The Bank’s offering is comprehensive and tailored to meet diverse customer needs, covering banking accounts, credit products, savings and investment products, payment solutions, insurance, and card services. The Bank’s services are developed based on technology, innovation and open platforms. They include cash management, payment processing, foreign trade support, operations in the capital, money, and foreign exchange markets, derivatives transactions, as well as guarantee and brokerage activities.

• Santander Bank Polska S.A. – Universal bank, which provides a full range of services for individual clients, small and medium-sized enterprises, large companies, corporations, and public sector institutions.
• Santander Towarzystwo Funduszy Inwestycyjnych S.A. – The company manages assets of investment funds. It has extensive experience in creating and managing Employee Pension Plans (EPPs) and Individual Pension Accounts (IPAs).
• Santander Leasing S.A. – It offers financing for a wide range of fixed assets to clients from the small and medium-sized business sector as well as corporate clients. Santander Leasing’s main products include operating leasing, financial leasing, loans for purchasing fixed assets and land, as well as vehicle rentals.
• Santander Factoring Sp. z o.o. – It provides sales financing (receivables factoring) for domestic and international buyers and purchase financing (payables factoring) for suppliers operating in Poland and abroad. The company serves small and medium-sized enterprises, corporations, and international firms with a global reach.
• Santander Consumer Bank S.A. – A. Focused on meeting the credit needs of households, mainly in the consumer finance sector and the car loan market. It also finances business entities, primarily car dealers and importers. Santander Consumer Bank’s offering includes consumer loans, car financing (via car loans, leasing, and factoring), dealer financing, retail and business deposits, and insurance products.

More information about the customer profile of the Group, the main product lines, and the service model can be found in Chapter IX in the section ”Organisational and infrastructure development”. As a Group, we operate in compliance with local and international regulations and therefore do not offer products or services prohibited in respective jurisdictions.

The foundations of the value built by the Group are as follows:

All our actions are guided by the needs and expectations of our customers. We design products, processes, and communication channels using service design principles to ensure that our customers will have high-level satisfaction and interest in continued cooperation. Our employees are a key driver of the value we create for our customers. As a Group, we place emphasis on building friendly work environment and organizational culture that promotes collaboration, equality, diversity, and inclusivity, while enhancing employee motivation, engagement, and professional development.

As of 31 December 2024, the Group employed 11,959 people in Poland, many of whom are specialists in customer service, financial analysis, and risk management. Detailed information about the employment structure can be found in the ”Our Employees” section further in the statement.

More information about the profile of our operations can be found in Chapter II ”Basic Information about the Bank and Santander Bank Polska Group”.

For the years 2024-2026, the Bank’s Management Board adopted the strategy titled ”We help you achieve more”, which is based on the mission: ”Helping customers and employees prosper” and focuses on three strategic directions: ”Total Experience”, ”Total Digitalisation” and ”Total Responsibility”. This strategy applies to the entire Group, except for Santander Consumer Bank, which holds its own banking license and therefore independently develops its own operational strategy.

Key Assumptions of the ”We help you achieve more” strategy:

• People – Customers and Employees – are at the core of our strategy. As a Group, we are committed to creating positive emotions by offering exceptional experiences that exceed the expectations of our stakeholders. We aim to deliver these experiences in the world our customers live in-a world that is increasingly digital yet still requires human interaction. We understand that customer satisfaction and employee engagement are critical to achieving success. This is embodied in the first strategic direction – ”Total Experience”,
• We know that positive emotions and experiences depend largely on digital interactions. With growing determination, we pursue the path of digital innovation, providing new opportunities to customers through remote channels and ensuring efficient processes for employees. This commitment is reflected in the second strategic direction – ”Total Digitalisation”,
• The challenges we face as a Bank and as a society demand great responsibility. We consciously make ethical decisions, ensuring we consider our impact on communities and the environment. Through a sustainable business model, we create value for customers, employees, shareholders, and local communities, while working toward a better future for us, our children, and our planet. This idea is captured in the third strategic direction – ”Total Responsibility”

More details about our strategy can be found in Chapter IV of the Management Report titled ”Development strategy”.

All three strategic directions included in the strategy complement each other. Sustainability has been embedded in each of them, particularly in the strategic direction Total Responsibility, which defines a series of ambitions across the ESG areas:

• Environmental: We aim to be a role model for sustainability and transformation, supporting its clients in navigating the green transition.
• Social: We support society by promoting education, preventing financial and digital exclusion, and implementing social investments. It fosters inclusivity and diversity among employees and ensures a high level of cybersecurity.
• Governance: We fulfil our commitments to all stakeholders by complying with regulatory requirements, ensuring security and stability, and building customer trust. Additionally, we engage in dialogue with regulators and industry organizations on new legislative directions and develop the risk management culture.

Through our activities as a Group, we focus on the eight UN Sustainable Development Goals. These goals also reflect our impact on our key stakeholder groups:

In 2024, the total revenues of the Group amounted to PLN 23,440,451 thousand. Our consolidated revenues primarily stem from banking activities and operations in capital markets (mainly through Santander TFI). This year, we are not publishing a quantitative analysis of revenues by industry sectors in which we operate, due to the lack of published sectoral ESRS.

More information about our financial performance can be found in Chapter I ”Overview of activities of Santander Bank Polska S.A. and its Group in 2024”.

The Group’s activities in these sectors are governed by internal policies, such as the ”Social, Environmental and Climate Risk Management Policy”, the ‘Sensitive sector financing policy’, and the ‘Defence sector policy’. According to these policies:

The value chain of the Group encompasses three key areas: upstream activities, internal operations, and downstream activities. These areas reflect our position in relationships with suppliers, customers, and stakeholders at every stage of our operations. When defining the value chain, we considered the requirements of ESRS and the EFRAG Implementation Guidance on the Value Chain.