Santander earns a record of 7,316 million until September, 25% more

The Santander bank has earned 7,316 million until September, which is 25% more than the same period last year.

NewsEditor
NewsEditor
26 October 2022 Wednesday 03:32
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Santander earns a record of 7,316 million until September, 25% more

The Santander bank has earned 7,316 million until September, which is 25% more than the same period last year. This is a record figure in the first nine months of the year. In the third quarter, the profit was 2,422 million, 11% more compared to the third quarter of 2021.

The company attributes these results to the fact that credit and deposits increased by 7% and 6% in constant euros (without currency fluctuation), respectively, and that revenues grew by 5%. The bank underlines that geographic diversification as well as its consumer division have helped to achieve these figures. Europe has contributed 32% of ordinary profit, South America 32% and North America 26%. And Digital Consumer Bank 10%.

The entity's shares fell up to 5% on the stock market despite the strength of the accounts due to an increase in certain provisions and costs.

The president of the entity, Ana Botín, maintains that "we have achieved a good result, with an increase in income and profitability above the target of 13.6%, supported by a solid balance sheet." The group assures that it will meet the profitability and capital objectives for 2022, but anticipates that cost pressure will prevent it from reaching the 45% efficiency objective. The interest margin grew by 15% and provisions by 25%, to 7,491 million.

In Spain, ordinary profit stood at 1,104 million in the first nine months of the year, 99% more due to the reduction in insolvency provisions (-27%) and costs (-2%). Delinquency in Spain stands at 3.69%. Revenues have grown by 3% thanks to commissions that have increased by 6%, both in retail banking and in Santander CIB. The granting of credit has increased by 7%, driven by growth to individuals and private banking.

In his opinion, "the macroeconomic environment will continue to be complicated, with Europe and North America adapting to levels of inflation not seen in decades." Despite this, he is confident that "the increase in revenue will offset the increase in costs and risk."

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