31.03.2022

Current report no 7/2022

Subject: The Management Board'srecommendation on the distribution of profit for 2021 and undistributedprofit for 2019

In connection with current report no. 5/2022of 23 February 2022, the Management Board of Santander Bank Polska S.A.("Bank") hereby informs you that on 31 March 2022 it issued arecommendation on the distribution of profit for 2021 and undistributedprofit for 2019. The recommendation was approved by the Bank'sSupervisory Board.

In line with the decision taken, the Bank'sManagement Board recommends that

- the profit of PLN 915,877,566.59 for 2021be distributed as follows:

-PLN 273,867,361.52 to be allocated todividend for shareholders;

-PLN 457,938,783.30 to be allocated toreserve capital;

-PLN 184,071,421.77 to be keptundistributed.

- the undistributed profit of PLN1,056,761,994.64 for 2019 be allocated to the Dividend Reserve createdby force of resolution no. 6 of the Annual General Meeting of 22 March2021 on profit distribution and creation of capital reserve.

In addition, the Management Board recommendsthat the dividend to be paid out of the profit earned in 2021("Dividend") should include 102,189,314 shares (one hundred two millionone hundred eighty-nine thousand and three hundred fourteen) of seriesA, B, C, D, E, F, G, H, I, J, K, L, M, N and O; the Dividend willrepresent 29.90% of the net profit earned in 2021; the Dividend pershare will be PLN 2.68; the Dividend record date will be 25 May 2022 andthe Dividend will be paid on 1 June 2022.

The Bank's Management Board and SupervisoryBoard will present this proposal along with the recommendation at thenext Bank's Annual General Meeting.

The Bank hereby informs you that:

1) Pursuant to Article 349 § 1 of theCommercial Companies Code and § 50(4) of the Bank's Statutes, and basedon Management Board resolution no. 175/2021 of 1 September 2021 andSupervisory Board resolution no. 122/2021 of 1 September 2021, on 15October 2021 the Bank paid interim dividend of PLN 220,728,918.24("Interim Dividend"). The Interim Dividend included 102,189,314 shares(one hundred two million one hundred eighty-nine thousand and threehundred fourteen) of series A, B, C, D, E, F, G, H, I, J, K, L, M, N andO. The Interim Dividend per share was PLN 2.16 and the record date forthe Interim Dividend was 8 October 2021.

2) The Interim Dividend was paid from theDividend Reserve created by force of resolution of the Annual GeneralMeeting no. 6/2021 of 22 March 2021 from the part of the net profitearned by the Bank in 2020; it does not reduce the Dividend to be paidout to shareholders.

When taking its decision, the ManagementBoard took into account the current macroeconomic environment as well asthe recommendations and current position of the Polish FinancialSupervision Authority (KNF), including that outlined in the KNF's letterof 23 February 2022, of which the Bank informed in its current reportno. 5/2022 of 23 February 2022, as well as the position outlined in theletter of 9 March 2020 confirming the Bank's compliance with thecriteria for paying a dividend from the profit earned in 2019, of whichthe Bank informed in its current report no. 4/2020 of 10 March 2020.

The profit distribution recommended to theAnnual General Meeting will not preclude the Management Board'spotential decision to distribute profit to the shareholders in the formof interim dividend and to use the Dividend Reserve for that purpose inH2 2022 pursuant to the authorisation given to the Management Board inaccordance with § 50(4) of the Bank's Statutes.

That will be contingent in particular on thepositive opinion of the KNF as well as economic situation and marketconditions.

The Management Board's potential decision topay an interim dividend in H2 2022 will also require the approval of theSupervisory Board.

Legal basis:

Article 17(1) of Regulation (EU) No 596/2014of the European Parliament and of the Council of 16 April 2014 on marketabuse (MAR).