Santander earns 9.309 million, up 14%, and estimates a profit margin of 16.2%.

Banco Santander received attributable profit 9.309 million euro between January and September, which represents Increase by 14% compared to last year and exceeds 9,227.70 million predicted by analyst consensus Bloomberg. The bank attributes the account increase to “strong” revenue growth “across all global companies and regions.” the number of customers increased by five million.

Improved results led to return on equity (RoTE) 16.2%, after it raised its target in July to exceed the 16% it proposed at the start of the year. He also set a goal of achieving high single-digit revenue growth and achieving efficiency factor 42%. This last relation is actually placed in 41.7%, the best figure in 15 years, thanks to the group’s transformation, which allows it to limit cost increases below the inflation rate.

“We have achieved strong and profitable growth, 19% increase in earnings per share. Interest margins and fee income are growing, loan quality is good and the transformation allows us to increase revenues well above costs,” estimates Ana Botín, President of Santander, in information sent to the Commission on Tuesday. National securities market (TSNM).

According to the banker, the development of the account proves the “strength” of the group through diversification across businesses and countries, as well as progress in implementing strategy. As an example, he cited that the “core” retail and consumer businesses, which together account for more than 70% of the business, Revenues increased by 8% and costs decreased by 1% in constant euros. “

In an increasingly unstable geopolitical environment, we are confident that We will continue this strong momentum throughout the rest of the year and into 2025. achieving all our goals,” he added.

The account is charged a commission in the amount of 335 million euros for emergency tax on banks, and the organization wanted to highlight its budgetary contribution in the midst of controversy caused by the government’s decision to perpetuate the tax. The bank emphasized that it allocated 4.246 million for income tax, which is 13% more than for the same period in 2023, and that represents an effective tax rate of 29%.

With the expansion of activities, the income item increased by 7% and reached a record 46.185 million euros. He the business is managed using the client’s resourcesin balance and out of balance, increased by 3% in constant euros, thanks, according to the company, to a “constant increase in the number of customers.” In finance, the loan portfolio in turn increased by 1%, also in constant euros, to €1.01 trillion, supported by the majority of global businesses.

Revenue growth by 8% and costs by 1%

A commitment to customer collaboration and price management has contributed to interest margin increased by 8% and reached 34.682 million, despite lower interest rates, thanks to the expansion of “all businesses and regions.” According to the bank, this growth is happening especially in the retail block due to margin management in Europe, higher business volume in North America and declining deposit values ​​in South America. Commissions, in turn, amounted to 9.666 million, an increase of 5%, with more than 95% of this contribution coming from customer business.

Defaults improved to 3.06%, but provisions increased 2% due to “expected normalization in the consumer sector”, although this item was largely offset by the development of the retail business, especially in Europe. Your capital adequacy ratio CET1 fully loaded

fell to 12.5%, exceeding the target.

Favorable earnings performance, as well as cost dynamics lower than inflation itself, allowed the bank to set an efficiency ratio of 41.7%, an improvement of 2.3 percentage points, which Santander attributes to the transformation of its group. “Replacing older technologies with common global technology platforms such as basic Gravity cloud banking, yes allowed the bank to receive savings in the amount of 378 million euros from 2022,” he explained.

On a unit-by-unit basis, the retail efficiency ratio fell by 4.2 percentage points to 39.3%, and the consumer sector fell by 1.9 percentage points to 40.7%. In both cases, revenues grow by 8%, while cost growth is limited to 1% in constant euros.

Business results

By Global Business Unit Retail and Commercial Banking Department It continues to strengthen as the group’s driving force, generating 52% of revenues and posting a profitability (RoTE) of 18.5%. Its profit grew by 29%, to 5.332 million, fromwith revenues increasing by 9%, costs contained and reserve burden reduced in Europe. In Brazil the number of clients increased by 6%, in Mexico by 3% and by 2% in Spain. Across the business, managed client resources increased by 3%, but lending fell by 1% due to early repayments of mortgages and SMEs in Spain and the UK, although this effect was largely offset by increased financing in South America and Mexico.

Subdivision Digital Consumer Bank earned 1.507 million, up 5%. It generates a further 20% of group revenue and has a profitability margin (RoTE) of 11.9%. In the business sector, the division recorded an increase in deposits attracted by 12% and loans by 5%, including due to a recovery in car sales.

Wholesale banking CIB It accounts for 13% of the group’s results with a RoTE of 18.1%. Its profit fell by 3% to 2.039 million. despite revenues increasing by 9% and posting them at 6.261 million. Much of this growth is driven by investments made in the United States, which support revenue growth in the group’s other businesses and countries.

Asset management and insurance, which includes private banking, wealth management and insurance, adds a further 6% to the group’s revenue, with a RoTE of 81.1%. Its profit increased by 15%, to 1.266 million. with growth of 12% in private banking, 19% in Santander Asset Management and 8% in insurance. Payments profits, however, fall 53% to 178 million, although they would have risen 10% if the charges recorded in the second quarter had been neutralized.