(6 August 2015 – Spain) Banco Santander made an ordinary attributable profit of €3426 million in the first half, 24 percent more than the same period last year.
Santander’s ten core markets increased profit, with a particularly important increase in the bank’s three largest markets; Spain, United Kingdom and Brazil.
In the first half of 2015, Santander registered notable growth in business and revenues, which also benefited from exchange rates, particularly the euro-dollar and euro-pound depreciation.
Business and revenue grew more than 12 percent, 7 percent without the exchange rate effect, which together with the reduction in loan loss provisions by 5 percent (9 percent without the exchange rate effect) brought an improvement in the ordinary attributable profit of 24 percent in the first half of the year.
Growth would have been 16 percent without the exchange rate effect.
These results are produced in a context of uneven economic performance for the different countries in which the group operates.
Countries such as Spain, the United States and Poland are expected to grow more than 3 percent this year; the United Kingdom., Mexico and Chile more than 2.5 percent, and Germany and Portugal, over 1.5 percent.
Meanwhile Santander expects Brazil and Argentina to register a fall in economic activity.
Official interest rates in euros, dollars and pounds continue to be at historic lows.
“The first half results show the soundness and consistency of Banco Santander’s business model.
“Profit grew in our ten core markets. Return, operational excellence and credit quality also improved. We will pay the first dividend against fiscal year 2015 in August and it will be entirely in cash,” Ana Botín, chairman of Banco Santander said.
Lending reached €826,707 million, 13 percent more than the same period last year.
Deposits and mutual funds grew 12 percent year-on-year and now total €823,482 million.
In the first half, lending rose €65,000 million and customer funds €51,000 million.
Revenues grew 12 percent and costs 11 percent, which allowed net operating income to grow 13 percent, to €12,256 million.
The efficiency ratio improved 0.4 point, to 46.9 percent, one of the best in the sector.
The fully loaded CET1 capital ratio improved 0.16 point in the quarter to 9.83 percent, return also improved, 0.6 point, meaning ROTE of 11.5 percent.
Profit grew in the group’s core markets. Europe contributed 54 percent (United Kingdom 21 percent and Spain 16 percent), Latin America 37 percent (Brazil 20 percent and Mexico 7 percent), and U.S, 9 percent.