Banco Santander attributable profit
rose 22% to EUR 2.206 billion in the
first quarter of 2008
Profit was driven by growth in revenues (19%) at triple the rate of growth in costs(6%), enabling net operating income to grow 31%.
The increase in revenue was underpinned by spread management and strong sales, despite a more difficult environment. Loans grew by 9% and deposits by 11% excluding exchange rate effects.
Earnings per share grew 14.7%, in line with the goal of 15% annual growth.
Continental Europe registered attributable profit of EUR 1,224 million, with an increase of 12% in commercial units and a decline of 51% in others.
Loans grew by 12% and deposits by 11%.
In Latin America, attributable profit increased by 22% in dollars to $1,092 million, with growth of 20% in loans and 18% in customer resources, measured in local currencies.
In euros, attributable profit rose 7% to EUR 729 million.
Abbey’s attributable profit rose 17% in pounds sterling to £235 million, with growth of 10% in loans and 5% in deposits.
In euros, attributable profit rose 4% to EUR 311million.
The stake in ABN Amro contributed EUR 252 million to the quarter’s results, nearly all generated by Banco Real.
Revenue and cost performance drove the efficiency ratio to a historic low of 41.9% (or 41.3% including ABN Real), an improvement of four percentage points from a year-earlier and of nine points since March of 2006.
The non-performing loan rate was 1.16% and the coverage rate was 133%, compared to 0.82% and 177%, respectively, the previous year.
Capital ratios underline Banco Santander’s solvency, with a BIS ratio of 12.2% and core capital of 6.1%.
The profit for the quarter is entirely recurrent, with no extraordinary capital gains registered in the period.
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