Santander Achieves Strong First-Half Results with 16% Increase in Attributable Profit

Strategic Insights -

Banco Santander has reported an attributable profit of EUR6,059 million in the first half of 2024, representing a 16% increase in current euros compared to the same period last year. This growth was driven by strong expansion in net interest income across all global businesses and regions, supported by an additional four million customers. The bank's cost control has also been commended, more than offsetting the expected year-on-year increase in provisions. As a result, Santander has upgraded its 2024 targets, expecting high-single digit revenue growth, an efficiency ratio of around 42%, and a return on tangible equity (RoTE) of over 16%.

Key Takeaways:

  • Banco Santander achieved an attributable profit of EUR6,059 million in the first half of 2024, representing a 16% increase in current euros compared to the same period last year.
  • The bank's strong growth in net interest income was driven by an additional four million customers across all global businesses and regions.
  • Santander has upgraded its 2024 targets, expecting high-single digit revenue growth for the year.
  • The bank aims to achieve an efficiency ratio of approximately 42% and a return on tangible equity (RoTE) of over 16%.
  • Tangible net asset value (TNAV) per share increased 12% to EUR4.94 at the end of the first half, with earnings per share (EPS) rising 19% to EUR0.37.
  • The targets of cost of risk at around 1.2% and fully-loaded Common Equity Tier 1 (CET1) above 12% after Basel III implementation remain unchanged.

Statistics:

  • EUR6,059 million: Attributable profit in the first half of 2024, representing a 16% increase in current euros compared to the same period last year.
  • 19%: Increase in earnings per share (EPS) to EUR0.37.
  • 12%: Increase in tangible net asset value (TNAV) per share to EUR4.94.
  • 4 million: Additional customers acquired across all global businesses and regions.
  • 16.3%: Return on tangible equity (RoTE) if the impact of the temporary banking levy in Spain were distributed evenly across the year.
  • EUR0.37: Earnings per share (EPS) in the first half of 2024.
  • EUR335 million: Temporary banking levy in Spain, registered in full in the first quarter.

Sources:

  • "Santander achieves attributable profit of EUR6,059 million in the first half of 2024, up 16% in current euros versus the same period last year" (Santander Press Release).