Santander breaks its profit record again with 11,076 million in 2023, 15.3% more

In Spain, the bank earns 2,371 million, 51.9% more, and increases its income by 23.1%, to 10,132 million

Banco Santander has broken its profit record for the second consecutive year with an attributed net profit in 2023 of 11,076 million euros, which is equivalent to an increase of 15.3% compared to last year, as reported this Wednesday when publishing its accounts. annual.

"Our objective is to deliver results in the short term and ensure that they grow and are sustainable in the future, and I am convinced that 2024 will be even better for Santander, with positive inertia in most of our businesses, despite the greater geopolitical risks and the slowdown of the global economy," said the bank's executive president, Ana Botín.

Santander's total income (gross margin) for the whole of 2023 was 57,423 million euros, 10.2% more than the previous year. Of that figure, interest income (interest margin) represented the bulk, with 43,261 million euros, 12% more.

Net commissions stood at 12,057 million euros, 2.3% more, while the results from financial operations and the impact of the exchange rate improved income by 1,653 million, 59.3% more. Dividend income increased by 17%, to 571 million euros.

The bank's operating costs in the year increased by 6.4%, to 25,425 million euros. Of that figure, personnel expenses rose by 9.4%, to 22,241 million euros, while the rest of administration costs stood at 13,726 million euros, 9.4% more.

The amortization of assets had a negative impact of 3,184 million euros in the year, 6.7% more, while provisions for impairment of financial assets stood at 12,956 million euros, 19.3% more.

In this way, Banco Santander's pre-tax profit for 2023 was 16,459 million euros, 7.9% more.

PROFITABILITY AND SOLVENCY

Ordinary earnings per share for 2023 improved by 21.5% to €0.65, while return on equity (RoE) was 11.91%, up from 10.67 % from the previous year. Return on tangible equity (RoTE) was 15.06%, compared to 13.37% in the previous year.

The CET1 capital ratio in its 'fully loaded' variant experienced an improvement of three tenths in December 2023 compared to a year earlier, up to 12.3%. The total capital ratio improved by five tenths, to 16.3%.

Likewise, Banco Santander closed the year with an increase of six basis points in its delinquency rate, so that it stood at 3.14% for 2023.

At the end of the year, the entity had 164.5 million clients, 2.9% more. Of that figure, 99.5 million were active customers, 0.3%, while customers considered digital rose 5.2%, to 54.2 million.

Globally, the number of bank employees grew by 3.1% in the year, up to 212,764 people, while some 500 offices were closed, bringing the total to 8,518 establishments.

At the end of 2023, the bank's balance sheet showed total assets worth 1,797 billion euros, 3.6% more, of which loans and advances to customers represented 1,036 billion euros, unchanged compared to last year.

For its part, it also recorded liabilities worth 1,692 billion euros, 3.4% more than in 2022, of which 1,047 billion were customer deposits, 3.7% more.

During the year, clients decided to withdraw some 49,000 million euros from demand accounts, up to a total balance of 661,262 million, while they deposited 71,000 million in time deposits, up to 307,000 million.

Off balance sheet, the bank managed customer resources of 208,528 million euros in investment funds, 13.3% more, and 14,831 million in pension funds, 5.8% more. The managed assets were 36,414 million euros, 13.1% more.

OTHER GEOGRAPHIES

According to the bank's main business segments, profit in Europe was 5,482 million euros, 43.9% more, while in North America it fell 18.2%, to 2,354 million, due to the decrease in profits in USA; and in South America it stood at 3,038 million, 16.9% less, due to the decline in Brazil.

Digital Consumer Bank's net profits fell 8.3%, to 1,199 million euros, while the global commercial banking business stood at 7,436 million (-6.3%); the investment banking branch, at 3,078 million euros (9.3%) and the wealth management area at 1,637 million euros (46.3%).

PagoNxt, Santander's payments subsidiary, recorded losses of 77 million euros in 2023, 64% lower than the previous year.

In Spain, the bank recorded an attributable net profit of 2,371 million euros, which is equivalent to an increase of 51.9% compared to the previous year. Total income increased by 23.1%, to 10,132 million euros, while the interest margin rose 46.3%, to 6,641 million euros.

On the bank's balance sheet in Spain, the credit balance contracted by 6.7% at the end of the year, to 239,214 million, while customer deposits fell by 1.6%, to 324,099 million.

Regarding only the fourth quarter of 2023, the Santander group recorded an attributable profit of 1.1%, up to 2,933 million euros, while total income (gross margin) was 14,552 million euros, 2. 1% less.

By 2024, Santander has targeted mid-single-digit revenue growth, improving efficiency until it falls below 43%; maintain the cost of risk at around 1.2% and achieve a RoTE of 16%. For its part, it expects to maintain the 'fully loaded' CET1 capital ratio above 12%.