Santander Q3 results are ahead of forecasts with a net profit of €1.99bn, up 36% year-on-year.
For the nine months to end September, Santander net profits are €5.7bn, up 13% year-on-year.
For the year to date, Santander has performed especially strongly in the US, Brazil and Spain.
Net profits are up by 24% and 18% in Brazil and Spain respectively. Santander’s formerly troubled US arm reports net profit up by 46.5% y-o-y.
Santander Q3 highlights:
- Market share gains in Brazil are helping to grow revenue strongly. Gross income is up 12.2% for the year to date.
- In Spain, the bank is enjoying lending market share gains with new lending up 11% y-o-y;
- A 24% increase in digital banking customers y-o-y to 29.9 million, and
- Successful cost control results in a competitive cost-income ratio of 46.9% for the year to date.
Santander Q3: Argentina and UK profits fall
Profits are down by 38% for the year to date in Argentina. Profits are also down in the UK with a net profit of €1.08bn down by 9.2%. Santander says that the UK economy remains relatively stable, however uncertainty remains. Santander’s UK cost income ratio of 55.2% for the year to date is 6 percentage points higher than the year ago period.
Santander ends the third quarter with 5.4 million digital customers in the UK, up 8% y-o-y.
UK margin pressure results in a 5.2% drop in the net interest margin.
Says Ana Botin, executive chair of Santander: “We have again delivered a strong set of results, with attributable profit 13 % higher in the first nine months of the year. Importantly, this has been achieved in a responsible and sustainable way.
“We are growing loyal and digital customers by investing in our digital transformation, and achieving a top three ranking in customer satisfaction in the majority of our markets.”