Banco Santander breaks its revenue document by exceeding 11,000 million euros for the primary time in 2023 | EUROtoday

Santander Bank For the primary time in its historical past, it has surpassed the revenue barrier of 11,000 million euros. The financial institution chaired by Ana Botn obtained a revenue of 11,076 million euros in 2023, 15% above the earlier 12 months and a document determine for the entity.

Behind the result’s the speed enhance, which sustained revenue development; the rise within the variety of shoppers and price management, which in keeping with the entity “more than neutralized the expected increase in provisions” on account of insolvencies, which was 19%.

As for the revenue, They grew by 11%, to 57,647 million. The enhance in exercise and the consolidation of fee will increase clarify the 16% enhance within the curiosity margin, whereas on the fee aspect a rise of 5% was recorded “thanks to the sale of value-added products , especially in global businesses”, as said by the financial institution in a press release revealed earlier than the market opening this Wednesday.

Revenue development (+13%) exceeded price development (+10%), which improved the effectivity ratio by 1.7 share factors, to 44.1%. The financial institution saved prices flat in actual phrases. Provisions for dangerous money owed elevated by 19%, in keeping with expectations in a context of excessive charges and inflation, on account of normalization within the United States and Mexico, and better protection of the mortgage portfolio in Swiss francs in Poland. The price of danger stood at 1.18%, “in line with the objective set for the whole year of being below 1.2%”, whereas the non-performing mortgage ratio remained secure at 3.14%. %.

In this fashion, the financial institution considers the aims it had set for final 12 months met. “2023 has been a key year for Santander: we have achieved record results and achieved all the objectives in the right way. We have five million new customers and we have increased revenue and profit by double digits, and the TNAV plus cash dividend by “The inventory grew by 15%. This will permit shareholders to return 5.5 billion euros for the outcomes of 2023,” said Ana Botón.

By 2024, the group is targeting mid-single-digit revenue growth; improve efficiency, bringing it below 43%; maintain the cost of risk at around 1.2%; achieve a RoTE of 16%, and maintain the capital ratio CET1 fully loaded above 12% (in 2023 it will be 12.3%).

Customer funds (deposits plus investment funds) grew by 4%, with a 2% increase in deposits, supported by both retail and corporate customers. Clients continued to use excess deposits to repay debt, especially mortgage debt. For this reason, as well as the reduction in demand in some markets due to rising interest rates, the volume of total loans fell by 1%, although consumer financing grew by 6%.

By geography, in Spain, the net attributable profit increased 52%, to 2,371 million euros.

In December 2023, Santander published adapted financial information from the last two years to reflect the new operating model announced in September. In this way, the bank's business is divided into five global businesses that become the new main segments from January 2024.

Taking into account this division, the attributed benefit of Retail & Commercial Banking it grew by 12% in 2023, up to 5,659 million euros; Digital Consumer Bank recorded an attributable profit of 1,901 million euros, 26% less than in 2022, “because of the affect of rates of interest on the price of financing and the normalization of provisions”, as the bank explains. CIB increased its attributable profit by 16%, to 2,440 million euros; Wealth Management & Insurancewhich encompasses the group's private banking, asset management and insurance businesses, increased its attributed profit by 35%, to 1,467 million euros, and as for Payments, PagoNxtwhich brings together Santander's most innovative payment businesses, increased its revenues by 17%, to 1,140 million euros.