Banco Santander first half attributable profit
rose to EUR 4.73 billion, up 22% from 2007,
excluding capital gains
Below are the key points from Santander's Half Year 2008 Financial results. To read the full documents click here
- Profit was driven by growth in revenues (16%) at a rate of growth 3.5 times higher than costs (5%), enabling net operating income to grow 26%.
- The increase in revenue was underpinned by spread management and strong sales, despite a more difficult environment. Loans grew by 8% and deposits by 10%, excluding exchange rate effects.
- Continental Europe registered attributable profit of EUR 2,388 million, with an increase of 13% in commercial units. Loans grew by 10% and deposits by 9%.
- In Latin America, attributable profit increased by 20% in dollars to $2,171 million, with growth of 20% in loans and 11% in customer resources, measured in local currencies. In euros, attributable profit amounted to EUR 1,420 million (+4%).
- Abbey’s attributable profit in pounds sterling amounted to £485 million (+20%), with growth of 12% in retail loans and 7% in deposits in pounds. In euros, attributable profit is to EUR 627 million (+4%).
- The stake in ABN Amro contributed EUR 477 million to the first half results, nearly all generated by Banco Real in Brazil.
- The non-performing loan rate was 1.34% and the coverage rate was 119%. NPLs in Spain stood slightly above one percentage point (1.08%). These rates compare very favorably with the average of the sector in the markets where the bank operates.
- The capital ratios underline Banco Santander’s solvency, with a BIS ratio of 11.43% and core capital of 6.32%.
- Second quarter ordinary profit was EUR 2,524 million, a record for Banco Santander.
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