Banco Santander increases its profit by 33% after earning 4,894 million in the first half of the year

Banco Santander recorded an attributable profit of 4,894 million euros during the first half of this year,

(+21% in constant euros), after an impact of restructuring charges of 530 million euros in the same period of 2021, as reported by the entity this Thursday.

In the second quarter, attributable profit was 2,351 million euros, 14% more year-on-year (+2% in constant euros).

Between January and June, ordinary profit stood at 4,894 million euros, which is 16% more in current euros compared to the same period in 2021.

Ordinary profit before tax was €7,915 million, up 4% in current euros, while

, resulting in an effective tax rate of 30%.

The bank has highlighted that the group's diversification continues to be a "great lever" for growth.

Thus, the ordinary profit for the period grew by 38% in Europe, to 1,839 million euros, and 7% in South America, to 1,946 million, while it fell by 10% in North America, to 1,578 million, due to the expected normalization of credit provisions.

, for its part, also increased its ordinary profit strongly (+16%), to 572 million euros.

"Going forward,

central banks, citizens and companies.

and, as until now, we see the path of collaboration between all economic and social agents. , and banks as the way to continue supporting the economies and our customers", said the president of Banco Santander,

.

"We are investing to secure the future and improving business connectivity in order to create customer and shareholder value. Despite the uncertainty and difficult economy, we are confident of achieving the 2022 goals, while continuing to increasing the tangible book value (TNAV) and the dividend per share in the medium term, after increasing by 9% in the last twelve months", reports the Europa Press agency.

The bank has highlighted that the strong activity, as well as the increase in interest rates in the United Kingdom, Poland and elsewhere, favored a 7% increase in net interest income, with particularly high growth in the United Kingdom (+13 %), Poland (+92%), Mexico (+9%), Chile (+7%) and Argentina (+93%).

commissions

Fee income increased 7%,

as a result of higher volumes and improved activity.

For example, according to the bank, billing derived from card and dataphone operations increased by 20% and 30%, respectively.

The wealth management and insurance businesses (Wealth Management & Insurance) and Santander Corporate & Investment Banking (Santander CIB) also registered "notable" increases.

As a consequence, total income grew by 4% (+11% in current euros due to the appreciation of most currencies), to 25,120 million euros.

The interest margin and income from commissions provided 97% of the group's income, which reflects, according to the entity, the quality of the results.

Inflation also led to an overall increase in costs (+5% in constant euros), although in real terms, i.e. after inflation, costs fell by 4% thanks to the improvement in productivity and the connectivity between the different markets.

delinquency

Likewise, the group's balance sheet remained "solid", with a non-performing loan ratio of 3.05%, 17 basis points less in year-on-year terms thanks to good activity in Europe and North America, while the coverage ratio remained at 71%.

The cost of risk rose six basis points in the quarter, to 0.83%, due to higher provisions.

The bank has highlighted that these results have allowed it to improve profitability metrics, with a return on tangible capital (RoTE) of 13.7%, well above the cost of capital, and an earnings per share (EPS) of 0.272 euros , 38% more (+19% on ordinary EPS for the first half of 2021).

For the whole of 2022, the objective is to obtain an

Likewise, Santander maintained a strong organic generation of capital in the quarter: it added 18 basis points to the 'fully loaded' CET1 capital ratio, which stood at 12.05%.

From now on, the group intends to maintain this ratio at 12%.

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