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IBOS member Santander announces Q3 2017 financial results

IBOS member Santander’s attributable profits have reached €5,077 million for Q3 2017, with underlying profit before tax of €10,175 million, up 19%. 

Banco Santander earned an attributable profit of €5,077 million during the first nine months of 2017, an increase of 10% compared to the same period last year after €515 million of one-off items. This was driven by further improvements in the quality and recurrence of the Group’s revenues, combined with good cost control and ongoing improvements in credit quality.

The Group continued to see positive trends across all businesses, with revenues increasing in eight of its ten core markets.

Ana Botín, Executive Chairman at Banco Santander Group, commented:

Our business has delivered another solid quarter of results – with positive trends and further improvements in earnings quality across all of the markets in which we operate.

“Our Latin American franchises continue to perform extremely well, with excellent growth in customer numbers and lending, and further improvements in credit quality. And in Europe our business is also performing strongly, despite market challenges.

“We have made good progress since acquiring Banco Popular in June 2017 – successfully raising the required capital, reaching an agreement to dispose of the real estate assets, while regaining more than €10 billion in customer deposits.

“Looking forward, our focus will remain on earning customer loyalty while continuing to invest in technology to deliver the best possible customer experience. We see significant potential for further profitable growth across our business and remain confident that we will meet all commercial and financial targets, including delivering double digit EPS growth by 2018.

During the third quarter the Group incurred a number of one-off charges, including a €300 million charge relating to the Popular integration (announced at the time of the acquisition), a €85 million charge relating to the integration of the retail and consumer franchises in Germany, and a €130 million charge relating to equity stakes, intangible assets and other items. Excluding these extraordinary items underlying profit increased by 14% in constant euros to €5,592 million.

Below are the financial highlights from Q3 2017:

  • During the third quarter alone, and excluding one-off items, the Group generated a profit of €1,976 million, up 17% year-on-year.
  • The Group continues to be well diversified across both developed and developing markets with underlying profit increasing in nine of the Group’s 10 core markets.
  • Excluding the acquisition of Banco Popular, the Group added 1.7 million loyal customers over the past year, with lending and customer funds increasing by 1% and 8% respectively in constant euros.
  • During the first nine months of 2017, income increased by 10% year-on-year in constant euros with revenues increasing in eight of the Group’s ten core markets.
  • The Group’s fully loaded common equity tier 1 (CET1) capital ratio increased by 8bp in the quarter to 10.80%.

Find the full press release, via Banco Santander, here