The Santander bank obtained a profit of 2,571 million euros in the first quarter of the year, 1% more than in the same period of the previous year, after paying 224 million for the new government tax on banks, whose payment for the set of 2023 is done now. Without this tax, the benefit would have been 2,795 million, 10% more.
The bank obtained this result in one of the most turbulent quarters for banks in recent times. The SVB and Credit Suisse crises have drawn attention to banks' liquidity and capital ratios. Santander closed the quarter with 152% liquidity, that is, with oxygen for 45 days, somewhat above the European average, and with quality capital of 14.4% of assets.
It was also expanding the business despite the fact that interest rate rises anticipate tightening and a brake on the granting of credits. Loans increased by 3%, boosted above all by those dedicated to consumption, which rose by 9%, compared to 2% for mortgages, which are slowing down.
In Spain, the attributable profit for the first quarter was 466 million euros, 28% more. Revenues rose 26% encouraged by the growth of clients, of 700,000, among other aspects. Deposits grew 7%, up to 301,000 million, while loans fell 3%.
The gross margin of the bank as a whole, which includes both interest and commissions, was 13,935 million euros in the first quarter, 13% more than in the same period of the previous year.
The interest income reflects the increase in credit income due to interest rate increases, which evolves faster than the increase in the cost of remunerating deposits. This margin increased to 54% in Portugal, 47% in Poland and 46% in Spain. "Santander is well positioned to benefit from the new interest rate cycle," he says.
The bank rates its credit quality as solid. Provisions increased in the last twelve months, while the cost of risk remained low, at 1.05%, below the target for the year of less than 1.2%.
"We have had a very good start to the year, with a year-on-year increase in revenues of 13% thanks to the strong growth in customers and volumes," says the bank's president, Ana Botín. The bank, which added 9 million customers In twelve months, it will distribute close to 50% of its profit among shareholders, half in cash and the other half in share repurchases.
