2010 first quarter financial results

Banco Santander net profit rises 6% to EUR 2.215 billion in the first quarter

Growth in revenues of 11% significantly exceeded the increase in costs of 7%. Excluding acquisitions and exchange rate effects, revenues grew by 3% while costs fell 0.3%. The quarterly profit excludes extraordinary gains from the sale of assets.

The Group continued to progress in its geographical diversification with Continental Europe contributing 47% of Group profit; Latin America, 35%; the U.K. 16% and Sovereign (U.S.) contributing 2%.

A strong increase in deposits (up 13%) and active management of debt issues (EUR 15,000 million) provide coverage of liquidity needs for nearly two years, taking into account expected growth in loans.

Deposits grew 13% while loans fell 0.3%.

Continental Europe registered attributable profit of EUR 1,369 million, up 5%. Loans decreased by 3% while deposits grew by 20%.

In Latin America, attributable profit stood at $1,409 million (up 22%) or EUR 1,019 million (up 15%). Loans increased 2% and deposits 3% in euros.

Brazil contributed 21% of Group profit with a record EUR 603 million in three months, an increase of 38%.

Attributable profit in the U.K. totalled £426 million (up 15%) or EUR 480 million (up 17%) with loans growing by 4% and deposits by 14% in euros.

Sovereign registered a profit of EUR 69 million, its second consecutive quarter of positive results.

New NPLs fell for a fourth consecutive quarter from a peak of EUR 5,290 million in the first quarter of 2009 to EUR 3,423 million this year.

The non-performing loan ratio was 3.34% and the coverage rate was 74%. The nonperforming
loan ratio of the businesses in Spain stood at 3.59%, well below the sector average of 5.37%.

The efficiency ratio stands at 41.5%, improving 1.5 point from the year before. The U.K. and Brazil have consolidated below 40% and Sovereign improved from 74.5% to 44% in one year.

The capital ratios underline Banco Santander’s solvency, with a Tier I ratio of 10.3% and core capital of 8.8%, compared to 8.9% and 7.3%, respectively, the previous year.

Read full financial results