Banco Santander meets its 2009 target with attributable ordinary profit f EUR 8.943 billion, up 1%

Santander distributes EUR 4,919 million to shareholders, 2% more than in 2008

All EUR 2,587 million in net extraordinary capital gains were assigned to voluntary provisions. The Group increased generic provisions by EUR 1,500 million, wrote down the portfolio of acquired properties with EUR 814 million provisions, covering 32% of the value at acquisition, and reduced the value of Metrovacesa to EUR 25 per share, with a charge of EUR 269 million.

• Profit was driven by growth in revenues (up 18%) almost double that of costs (up 10%). Excluding acquisitions and the exchange rate effects, revenues were up 11% and costs by less than 1%.
• Loans rose by 9% and deposits by 21%. The Group continues to progress in its geographical diversification, with Continental Europe contributing 48% of Group profit (Spain accounts for 26%); Latin America, 36% (Brazil accounts for 20%); and the U.K. 16%.
• Continental Europe registered attributable profit of EUR 5,031 million, up 7%. Loans decreased by 1%, while deposits grew by 20%.
• In Latin America, attributable profit stood at $5,331 million (up 11%) or EUR 3,833 million (up 6%), with loans falling 8% and deposits 7%, excluding the sale of Banco de Venezuela and the exchange rate effect.
• Attributable profit in the U.K. totalled £1,536 million (up 55%) or EUR 1,726 million (up 38%). Loans grew by 5% and deposits by 8% in pounds.
• The non-performing loan ratio was 3.24% and the coverage rate was 75%. The nonperforming loan ratio of the businesses in Spain stood at 3.41%. Growth in the nonperforming loan ratio slowed down for a third consecutive quarter and the coverage rate increased for a second consecutive quarter, following steady reductions since 2006.
• The Bank made provisions of EUR 9,484 million (up 44%) against 2009 earnings. Generic loan-loss reserves come to EUR 6,727 million, covering provisioning needs for 2010 and 2011.
• The efficiency ratio stands at 41.7%, improving 2.9 points from the year before.
• The capital ratios underline Banco Santander’s solvency, with a Tier 1 ratio of 10.1% and core capital of 8.6%.

Read full results press release