The Spanish banking giant Santander Bank obtained a net profit of 2,543 million euros (about 2,728 million dollars) in the first trimesteran increase of 58% compared to the same period in 2021, driven by the good performance of the European market.
The result is higher than expected by analysts questioned by the financial information provider Factset, who predicted an average profit of 2,350 million euros.
“The first quarter has been very solid,” said the president of Santander, Ana Botín, in a statement, in which she highlighted the “increase in the number of clients” registered by the banking group, but also the “growth in its income” .
The Spanish bank has 155 million clients worldwide, seven million more than in the first quarter of 2021, it was indicated.
Its gross margin increased by 8%, to 12.3 billion euros, thanks to the increase in loans and deposits. The net margin was 6,770 million euros.
All regions performed well, especially Europe, where profitability improved,” Botin said.
Santander’s ordinary profit increased by 30% in Europe, to 1,010 million euros. It increased 8% in South America, to €900 million, and was flat in North America, to €806 million.
In the Madrid Stock Exchangethe Santander share remained stable at 09:00 GMT, in a slightly rising market (+0.79%).
“Santander’s diversification as well as its weight in retail credit” are “attractive” factors in the current context, Jefferies analysts estimated in a note, expecting this “favorable” trend to continue in the short term.
The first spanish bank confirmed its objectives for 2022, “despite the effects of inflation”, which has been rising sharply for several months, “which will have an impact on global economic growth”.
Santander, which obtained a profit of 8,120 million euros last year, after suffering abysmal losses of 8,700 million in 2020 due to the health crisis, plans for 2022 “to distribute approximately 40% of the ordinary profit, between cash dividends and share buybacks.