Santander Bank The company reported a 20% year-on-year increase in net profit within the second quarter, driven by growth in retail, wealth management and consumer businesses, following successful revenue and margin management in Europe and Brazil.
The company’s net profit attributable to the parent company amounted to three.207 billion euros (3.48 million dollars), according to the consensus expectation of analysts surveyed by Reuters.
The bank’s key metrics have also strengthened: the fully loaded CET1 ratio (a measure of a bank’s solvency) rose from 12.3 percent within the March quarter to 12.5 percent within the three months to June.
Return on tangible equity (a profit metric) rose to 16.8 percent within the June quarter (from 14.9 percent in the primary quarter) and to fifteen.9 percent in the primary half of the 12 months (from 14.5 percent in the identical period last 12 months). This prompted the bank to boost its RoTE forecast for the total 12 months 2024 to over 16 percent from 16 percent previously.
Santander now expects revenue to grow at a high single-digit rate, after previously forecasting a mid-single-digit increase.
Further highlights:
- Profit before tax: 4.925 billion euros within the second quarter, in comparison with 4.258 billion euros in the identical period last 12 months.
- Net interest income: 11.47 billion euros within the June quarter, compared with 10.52 billion euros in the identical three-month period last 12 months – but below the 11.96% forecast of analysts surveyed by Reuters for the second quarter of 2024.
Regarding earnings, the bank pointed to “negative effects of the adjustment to the hyperinflation crisis” in Argentina, where President Javier Milei has made curbing price increases a priority.
“Faced with a volatile geopolitical environment, we are confident that we will achieve the more ambitious targets set today thanks to our diversification across businesses and markets, the strength of our model and the quality of our team – to whom I am once again extremely grateful,” Santander CEO Ana Botin said in a press release.
