Although the COVID-19 pandemic has had a significant impact on customer activity, IBOS member Santander highlights significant improvements in Q3 2020.
Santander’s underlying profit in Q3 2020 increased 18% from Q2 2020, owing to higher revenues and lower provisions. The Group’s CET1 capital ratio also increased to c.12%, the top end of its target range.
The Bank’s attributable profit in Q3 2020 was €1,750 million, which is an increase of 249% compared with Q3 2019, owing to a non-cash goodwill impairment and other charges in 2019.
Santander’s efficiency plan is progressing faster than expected. Costs declined by more than 2% year-on-year in constant currency. Year-to-date, the Europe region achieved cost synergies of €500 million, exceeding Santander’s full year 2020 target, on top of the €200 million it achieved in 2019.
The use of Santander’s digital services continued to accelerate, in part due to higher digital adoption during the pandemic. The Bank now has 41 million digital customers (an increase of 14%), of which 34 million now use mobile banking (an increase of 21%). Nearly half the sales (44%) registered in the first nine months of the year were on digital channels, eight percentage points more than in 2019.
The Group’s ongoing focus on customer loyalty and investments in digital helped keep it amongst the top three for customer satisfaction in five of its core countries, while also improving operational efficiency.
Read the full press release via Santander here.