Banco Santander Q2 2024 results

Santander generated a corresponding profit of €6,059 million in the first half of 2024, up 16% in current euros compared to the same period of the previous year, thanks to strong growth in interest margins across all global businesses and regions, supported by an increase in the number of customers by four million and good cost control that more than offset the expected increase in provisions.

The Group increased its profitability and shareholder value, with a return on equity (RoTE) of 15.9%, rising to 16.3% if the impact of the Spanish banking tax is fully captured in the first quarter (€335 million). In addition, at the end of the first half, the company achieved earnings per share (EPS) of €0.37, up 19%, and a tangible book value (TNAV) per share of €4.94. Taking into account the cash dividend paid in November 2023 and the final dividend paid in May, the total value created (TNAV plus cash dividends per share) increased by 12%.

Thanks to these strong results, Santander has improved its targets for 2024 and now expects to achieve high single-digit revenue growth (versus the previous mid-single-digit target); an efficiency ratio of around 42% (versus the previous target of below 43%) and a RoTE above 16% (versus the previous 16%). On the other hand, following the implementation of Basel III, the cost of risk targets remains at around 1.2% and the full CET1 burden is above 12%.