Banco Santander continues to beat records and leaves no doubt that the Covid-19In terms of balance, it is already well behind. The entity records until September 2021 a net profit of 5,849 million euros, compared to losses of more than 9,000 million in the same period last year.
The figures between years are not comparable since in the first two quarters of 2020 the entity was greatly affected by accounting adjustments, such as the updating of goodwill and deferred tax assets. On the other hand, the data for the third quarter do show an evolution. Between July and September 2021 the bank has earned 2,174 million, which is 24% more year-on-year and 25% more if the exchange rate is discounted.
Excluding extraordinary items, Santander recorded up to September earnings of 6.379 million, 87% more year-on-year. And this, as the bank itself reports, is the highest figure in the first nine months of the year since 2009.
“The growth in business volumes (+ 4% in credit, + 6% in year-on-year deposits) boosted these good results”, reported the entity, to then add the contribution to the group from the different regions. Its three regions (Europe, North America and South America) contributed similarly to the group’s profit: “The recurring profit for the first nine months almost doubled in Europe, to 2,293 million euros (+ 98%), and it was more than double in North America, up to 2,288 million euros (+ 122%), while in South America increased 31%, to 2,471 million euros. Digital Consumer Bank also registered strong growth (+ 17%), reaching 935 million ”.
The bank also puts in value the taxes it pays for the accumulated profit. This, now, is a relevant figure since the Government has included in its Budget project for 2022 a minimum rate in the Corporate tax 18% for banks. Ordinary income before taxes was 11,432 million in the first nine months of the year after growing 74%, while income taxes in the period were 3,911 million euros, which represents an effective tax rate of 34%.
Net interest income, meanwhile, grew 7% until September, while fee income increased 8%, already exceeding pre-Covid levels. “Total revenue increased 8%, to 34,626 million euros, which, together with cost control, drove an increase in profit before provisions (net margin) of 11%, to 18,848 million euros,” he reported. the bank.
The NPL ratio has continued to decline to 3.18%, and the coverage ratio stood at 74%. The ‘fully loaded’ CET1 solvency ratio remained at the top of the target band at 11.85% after increasing 15 basis points. Profitability, measured in ROE terms, stood at 9.54%, regaining strength after negative 2020 figures. “We are on the right track to significantly exceed our profitability targets for 2021, while maintaining a capital ratio CET1 ‘fully loaded’ at the top of our 11-12% target range. All this allows us to offer an attractive remuneration to our shareholders and to continue investing in future growth ”, stated Ana Botín, president of the entity.