IBOS member Banco Santander delivered an attributable profit of €1,867 million during the first quarter of 2017, up 14% compared to Q1 2016. Excluding currency movements, profit before tax increased by 17% to €3,311 million.
The underlying business performance was strong, with positive trends in all markets and particularly good growth in Latin America, Spain and Santander Consumer Finance. Excluding the impact of currency movements, attributable profits increased in nine of the Group’s ten core markets.
The Group’s ongoing investment in technology helped increase the number of digital customers by 4.2 million since Q1 2016 to 22.1 million, while also increasing customer satisfaction. Santander ranks among the top three highest rated banks for customer satisfaction in eight of its nine core geographies.
As well as improving customer satisfaction, the progression in digital transformation, combined with strong cost discipline, allowed Santander to further strengthen its position as one of the most efficient banks in the world, with the cost/income ratio improving to 46.1% from 48.1% during the quarter.
Ana Botín, Executive Chairman at Banco Santander Group, commented:
“It’s been a strong start to the year with positive momentum across all markets and particularly good growth in Latin America, Spain and our consumer finance business. We are earning the loyalty of more customers, delivering ahead of our targets, and maintaining our position as one of the most efficient, profitable, and predictable banks in the world.
“While the environment continues to be challenging for the banking sector, the outlook for Santander is positive. The economies of all our core markets are expected to grow this year and we are confident that our business model, combined with the consistent execution of our strategy, position us well to continue delivering for our customers and teams while growing profitably in the years ahead.”
The Group delivered strong growth across its key shareholder measures and continued to meet all strategic targets. Since the Q1 2016 return on tangible equity, a key measure of profitability, has increased by 100 basis points to 12.1%, among the best of our peers. Tangible net asset value per share increased by 5% to €4.26, and earnings per share increased by 14% to €0.122.
Strong profitability allowed the Group to further strengthen its capital during the quarter with the common equity tier 1 capital ratio increasing by 11 basis points to 10.66%. This is significantly higher than the Group’s expected minimum regulatory capital requirement for 2019 (9.5%).
Below are the highlights from Santander’s Q1 2017:
- The Group has earned the loyalty of a further 1.5 million customers since Q1 2016, with lending and customer funds increasing by 2% and 7% respectively
- The Group continues to be well diversified with Europe contributing 52% of profit and the Americas 48% (Brazil 26%). Attributable profit increased in nine of the Group’s ten core markets, excluding currency movements
- During the first quarter of 2017, the Group’s common equity tier 1 capital ratio increased by 11 basis points to 10.66%, while cost/income ratio improved to 46.1% from 48.1%
- Since Q1 2016, return on tangible equity, a key measure of profitability, has increased by 100 basis points to 12.1%, among the best of our peers. Tangible net asset value per share increased by 5% to €4.26, and earnings per share increased by 14% to €0.122
Access Banco Santander’s Q1 2017 results here.